Moorosi Tsiane
THE now-defunct Mothae Diamond Mine, owned by former Minister of Local Government, Chieftainship, Police and Home Affairs, Lebona Lephema, has been dragged to court over an alleged M643 952.87 debt owed to security company, G4S Secure Solutions Lesotho.
In papers filed before the Commercial Division of the High Court this month, G4S is seeking payment of the outstanding amount, together with interest and legal costs, arguing that the mine benefited from its security services but failed to honour its contractual obligations to pay for the services despite repeated demands.
According to the application, G4S and Mothae entered into a written service agreement in Maseru on 1 February 2022 under which the security company was appointed to provide comprehensive protection services at the mine.
The agreement required G4S to provide round-the-clock security, including manned guarding, perimeter security, access control, body searches, patrols, supervision, observation and reporting.
Court papers state that G4S deployed day and night-shift supervisors and patrol officers to ensure continuous protection of the mining operations.
“The applicant duly complied with the agreement and rendered the services required of it. The respondent received and accepted the benefit of those services, including manned guarding, supervision, access control, patrol site allowance, communications, vehicle and related security services,” the application reads.
G4S says it issued monthly invoices for services rendered between January and May 2025.
The January and February invoices amounted to M123 981.48 each, while those for March, April and May totalled M122 796.29 each.
A running account statement dated 31 May 2025 reflected an outstanding balance of M643 952.87.
According to G4S, all invoices were submitted to Mothae in accordance with the service agreement but were ignored.
“The services underlying the invoices were rendered by the applicant to the respondent pursuant to the agreement. The invoices were directed to the respondent at its P.O. Box 1732, Maseru 100, Lesotho address and account number 400035,” the application states.
G4S argues that Mothae’s failure to pay constitutes a material breach of the agreement.
“The respondent failed, neglected and/or refused to pay the invoices and the account balance when due,” the company states in its papers.
The security firm says the mine’s financial and operational difficulties do not absolve it of its contractual obligations.
Court documents show that on 29 May 2025, Mothae wrote to G4S advising that it had suspended operations following the breakdown of its crusher at the end of April.
The mine reportedly said it had recorded no production during May and expected the same situation in June, before requesting the temporary suspension of security services from 31 May 2025.
However, G4S contends that the mine effectively admitted owing the money.
According to the application, Mothae did not dispute either the services rendered or the invoices submitted.
Instead, the mine reportedly informed G4S that it was “investigating all possible options to settle any overdue amounts for past services rendered by G4S as soon as possible, and prior to G4S being called back to resume its service offering to Mothae.”
G4S argues that the statement amounts to an acknowledgement of the debt.
“This constitutes an admission, alternatively acknowledgment, that amounts were overdue for services already rendered,” the court papers state.
The company further argues that the breakdown of the crusher and the subsequent suspension of operations cannot extinguish an already accrued debt.
“The respondent’s crusher breakdown, suspension of mining operations, lack of production, alleged cash-flow difficulty, or request for temporary suspension did not cancel, compromise, waive or extinguish the respondent’s existing debt for services already rendered and invoiced,” G4S argues.
Court papers further reveal that G4S’s lawyers later served Mothae with a formal letter of demand requiring payment within seven days.
The demand detailed the service agreement, the security services rendered, the outstanding balance and contractual interest, while warning that legal proceedings would follow if payment was not made.
Despite the demand, G4S says no payment was forthcoming.
“Despite lawful demand, the respondent has failed and/or refused to pay the outstanding amount, or any part sufficient to extinguish the debt,” the application reads.
G4S maintains that its claim is straightforward because it is supported by documentary evidence, including the written agreement, invoices and account statements.
The company insists that Mothae remains contractually bound to settle the debt regardless of the suspension of mining activities.
“The applicant performed its obligations by rendering the contracted security services, issuing invoices and maintaining a running account. The respondent breached the agreement by failing to pay the amounts due, owing and payable to the applicant.”
G4S further states that it has never waived its claim and is seeking an order compelling Mothae to pay M643 952.87, together with interest and the costs of the legal proceedings.