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Mothae Diamond Mine Fires 400 Workers — Minister’s Controversial Deal Back in the Spotlight

Maseru, Lesotho – Mothae Diamond Mine has laid off 400 workers, reigniting public anger over its controversial 2024 sale to Minister Lebona Lephema, who currently serves as Minister of Local Government, Police and Home Affairs.

The mass retrenchment is the latest crisis for the mine, which was once seen as a national success story.

Controversial Sale of Mothae Diamond Mine

The Lesotho Tribune first reported in 2024 that Mothae was sold to Minister Lephema for only M100,000 (around USD 5,500). At the time, the mine’s parent company owed the Government of Lesotho more than M178 million (approximately USD 10 million) and had taken on inter-company loans exceeding M650 million.

The sale has raised serious concerns about conflict of interest, as Lephema was already a serving Cabinet Minister during the purchase.

Now, with hundreds of workers retrenched, questions about who benefits from the mine are once again in the spotlight.

Union Shut Out Following Retrenchments

In a letter dated 3 July 2025, Mothae Diamonds informed the Independent Democratic Union of Lesotho (IDUL) that it no longer qualifies as a bargaining partner. The reason? IDUL no longer represents over 50% of the workforce — largely due to the recent job cuts.

The company said IDUL will retain rights under the Labour Act of 2024, but many believe the layoffs were designed to weaken the union.

“They got rid of those who spoke up,” said a former employee. “Now they’re trying to control everything without us.”

Public Calls for Investigation Ignored

When the mine was sold, many Basotho were shocked. A national diamond resource, known for its potential to boost the economy, was transferred into private hands for a fraction of its value.

Opposition figures called out the deal immediately.

“There’s no way this deal was clean,” said Hon. Machesetsa Mofomobe, an opposition leader at the time. “It’s a textbook case of conflict of interest.”

Despite growing calls, the government never launched a formal investigation. With hundreds now unemployed, calls for a probe are growing louder.

National Asset, Private Profit

Mothae Diamond Mine, once hailed as a catalyst for job creation and economic growth, now appears to be a privately controlled operation with limited public benefit.

Neither Minister Lephema nor Mothae Diamonds have commented on the retrenchments. Attempts by the Lesotho Tribune to obtain a statement have gone unanswered.

This is a developing story.

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| Independent business & current affairs journalism · Lesotho