MASERU — The High Court will tomorrow hear a case to decide why Lesotho Sandstone should not be placed under judicial management.
The High Court on August 5 placed Lesotho Sandstone Enterprise Pty Ltd under judicial management following serious allegations of fraud and mismanagement.
Two attorneys, Advocate Salemane Phafane and Advocate Stefan Carl Buys, were appointed to oversee the running of Lesotho Sandstone at Lekokoaneng in Berea, about 25 kilometres north of Maseru.
Phafane is representing the defendants, while Bys is representing the applicant, Zhai Feng Fu.
Zhai Feng Fu alleged in court documents that his co-directors in Lesotho Sandstone had defrauded him of M12 000 000. Feng Fu holds a 37 percent stake in the company.
Zhai Feng Fu alleges that the defendants Long Yan Wang, Long Yan Xin, Gong Xin Guan and Fan Jiang Ming stole the company’s money and deposited it into their individual FNB accounts.
Thabo Mpaka, a lawyer assisting to resolve the dispute, told the High Court earlier this month that the application should be heard as an urgent matter.
Mpaka said the firm should be placed under provisional judicial management and that the order of judicial management be published in the Government Gazette.
He said Bys and Phafane should be appointed as joint provisional judicial managers. The two should be authorised to take control of the company assets, Mpaka said.
“That Stefan Carl Buys and Advocate Salemane Phafane be appointed as joint provisional judicial managers of the first respondent and be authorised to take under their immediate control the assets of first respondent and especially be granted those powers which are provided for in sections 268, 270, 272 of the Companies Act of 1967,” Mpaka said.
He also directed that a rule nisi “be issued calling upon the respondent or any interested party to show cause on August 24, 2009 at 9.30am why this order should not be made a final order of court”.