PRESS RELEASE 

1.  The Private Sector Advisory Committee (PSAC) held yet another important meeting at Lesotho Sun on 11th December,2002.This is on its series to monitor progress of the implementation of the privatisation process of state owned enterprises in Lesotho. PSAC, which was created under the Privatisation Act to advise Government on the implementation of the Privatisation process in Lesotho,  is a body comprising the Government and other representatives from the private sector such as the Trade Unions, Women Associations, Lesotho Manufactures Associations  and the Association of Lesotho Employers.

2.    The meeting was informed that there had been delays in the plans to privatise Lesotho Electricity Corporation (LEC). The contract of Interim Management Task Force (IMTF) that has been managing LEC since February 2001 ended at the end of July 2002. As a result of the delay, however, a new Caretaker Management Contract had been signed with SAD-ELEC to the continuation of the management team up to the expected commencement of the new strategic investor in LEC. The Committee raised concern about the possible financial implications of the extended Caretaker Management Contract to the Government, and advised that necessary steps be taken to reach a conclusion about the future management of LEC as soon as possible.  

3.     Regarding the progress on the advertised privatisation of 16 agricultural enterprises, the committee was informed that the proposals were being considered taking into account legal requirements according to the Land Act, and recommendations would be submitted to Cabinet in the new  year.  

4.     The meeting learned that a delegation of officers from the Government and the private sector had taken an exploratory trip to assess the situation on the ground and to sensitise the communities living in proposed pilot sites for the Multi-Utility Project.  The Project aims at delivering a development package comprising provision of electricity, telephones and water services to rural communities. The proposed pilot sites for the project are at Dilli-Dilli, Ha Seshote, Mapholaneng, Semonkong and Linakeng.  

5.     The committee noted that the public awareness campaign of the Lesotho Unit Trust is having a positive impact on the public as the latest statistics indicate that the fund size has increased by 70 percent to the amount of M28.1 million. The committee urged that the campaign be intensified to attract more Basotho investors as the recent upward trend shows the potential to invest.