MASERU — Former Prime Minister Pakalitha Mosisili says he is one of the
400 000 people who invested in MKM, a company which was shut down in 2007 for operating illegal insurance and banking businesses.
Mosisili is the first top official of the previous government to publicly admit that he invested in MKM, which the Central Bank of Lesotho declared a Ponzi scheme.
The High Court and the Court of Appeal ruled that MKM was operating illegal businesses.
Four MKM companies are in liquidation after they could not account for M300 million of the M400 million they collected from investors.
Estimates say the depositors are unlikely to recover more than 19 lisente of every loti they invested in the company.
Experts say the liquidation process might take up to ten years to complete.
Mosisili told his Democratic Congress supporters at a rally in Hlotse last Sunday that he hopes his successor, Prime Minister Thomas Thabane, would fulfill his pre-election promise to pay MKM investors.
“I hope they (coalition government) will (pay the investors),” Mosisili said.
“I for one invested in MKM. My money is also there. They promised the people that they will get their monies back. I hope they will live up to their promise,” he said.
Mosisili’s admission suggests that MKM could have operated for a long time with the subtle approval of Mosisili’s government.
It could also explain why several High Court judges recused themselves from the case when MKM was trying to block its liquidation.
In the end a South African judge had to be hired to preside over the case.
There are strong indications that some senior officials in Mosisili’s government could also have lost money in MKM. It’s either that or they initially made a killing from the Ponzi scheme.
On Friday Mosisili said he could not talk to the Sunday Express because he was busy.