MKM boss to rep­re­sent ABC in poll

Lesotho Times - - Front Page - Lekhetho Nt­sukun­yan Nt­sukun­yane

Em­bat­tled mkm boss, Si­mon thebe-ea-khale, will r rep­re­sent the all ba­sotho C Con­ven­tion (abc) in next ye year’s par­lia­men­tary elec­tions, the Le­sotho Times has learnt.

mr thebe-ea-khale y yes­ter­day con­firmed he wo would contest the Hloahlo­eng c con­stituency in Mo­hale’s H Hoek after emerg­ing vic­tori vic­to­ri­ous in the party’s pri­mary e elec­tions.

“I have al­ready been c con­firmed as a can­di­date for Hloahlo­eng by the par party’s Na­tional Ex­ec­u­tive Co Com­mit­tee (NEC).

“How­ever, I am yet to ad­dress MKM staff about t this, and also need to meet the abca NEC first be­fore I go to the me me­dia about my en­try into pol­i­tics,” Mr thebe-ea-khale said.

“In fact, I will be hold­ing a pr press con­fer­ence where I will brief you all and the na­tion at large, about whywh I d de­cide­did d t to ji join pol­i­tics.liti

“But it will have to be after I have re­ceived the man­date to do so from the ABC be­cause this is my home now and the party I will be rep­re­sent­ing in my con­stituency in Fe­bru­ary next year.”

mean­while, mr thebe-ea-khale’s sud­den foray into ac­tive pol­i­tics comes in the mid­dle of a le­gal show­down over MKM, which the courts ruled in 2011, that it should be liq­ui­dated be­cause it was in­sol­vent.

MKM Group—com­pris­ing MKM Mar­ket­ing Ltd, Star Lion Group Ltd, Star Lion In­surance Ltd and Star lion Gold Coin In­vest­ment (Pty) Ltd—was shut down in 2007 by the Cen­tral Bank of Le­sotho (CBL) for op­er­at­ing il­le­gal bank­ing and in­surance busi­nesses.

a Cbl-com­mis­sioned in­ves­ti­ga­tion con­ducted by South Africa’s Price­wa­ter­house­coop­ers, also re­vealed of the M400 mil­lion in­vested by de­pos­i­tors, the company could only ac­count for M100 mil­lion in as­sets that in­cluded build­ings and ve­hi­cles.

the Cbl then ap­plied for mkm’s liq­ui­da­tion in the High Court, cit­ing the company’s li­a­bil­i­ties were much more than its as­sets. the ap­plica- tion was granted on 18 May 2011, and up­held on 21 Oc­to­ber 2011 by the Court of Ap­peal, after the company had chal­lenged the rul­ing.

The judg­ment paved the way for MKM’S liq­ui­da­tion, leav­ing an es­ti­mated 400 000 de­pos­i­tors who had ex­pected to reap su­per prof­its from a Ponzi scheme thebe-ea-khale was op­er­at­ing, stranded and un­sure if they would ever re­cover their funds.

MKM’S six build­ings in Maseru were set to go un­der the ham­mer at Le­sotho Sun on 17 Novem­ber 2014, but the auc­tion was dis­rupted by an angry mob which stormed the ho­tel and beat-up the co­or­di­na­tor of the sale, Ste­fan Carl Buys.

How­ever, the auc­tion went ahead in Lady­brand, South Africa, later that day, with five of the six prop­er­ties be­ing ‘sold’ while the other build­ing was with­drawn due to “le­gal com­pli­ca­tions”.

But in a new twist to the saga, the High Court 26 Novem­ber this year can­celled the auc­tion, ef­fec­tively nul­li­fy­ing the 17 Novem­ber sale pend­ing the fi­nal­i­sa­tion of a new ap­pli­ca­tion 11 de­pos­i­tors had filed be­fore the court the same morn­ing.

mkm owner Si­mon Thebe-ea-khale

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