The Committee was also briefed on the implementation of the Public Service Concession strategy of LEC that is currently on-going. The evaluation process for the selection of bidders during the prequalification stage is still in progress. This will be followed by invitations to be sent to bidders for the qualification stage to prepare for the final selection of the investor who will take over the operations of LEC. A Vesting Bill is being drafted that protects the rights and obligations of the LEC employees by transferring them to the new owner together with all LEC assets. Employee briefings are already underway both at the headquarters and the districts on the LEC strategy.

PSAC also discussed developments on the privatization of Maluti Highlands Abattoir. According to the statement, following a concern by the Cabinet Sub-Committee that transparency was lacking, advertisements were placed in the media inviting potential investors to express interest. Ten (10) expressions of interest were received by the set deadline and so far proposals were requested from potential investors to determine their skills and financial strength.

PSAC was informed of the continuing success of Lesotho Unit Trust that was launched in August 2001. The fund size of the Trust had exceeded M100 million suggesting an estimated return on investment of 18%.

The Committee was briefed on a one-year extension from April 2004 for a Management Agreement with Lenmed Management Service for the use of Maseru Private Hospital by that was granted by the Government of Lesotho. The Agreement is to enable Queen Elizabeth II Hospital to refer patients who were originally being referred to Bloemfontein to Maseru Private Hospital and to call in the specialist doctors from Bloemfontein to consult patients at Maseru Private Hospital. This was also intended to ensure activity at the Hospital which would ensure the use of its facilities to full capacity, and to subsequently make the Hospital a viable entity which can then be returned to the private sector in due course, or else be continued as a Public-Private Partnership.

At the end, PSAC that a Steering Committee that would follow up on the implementation of the Employee Share Ownership Scheme at Lesotho Flour Mills should be formed.

PSAC is an advisory body formed of the private sector and government representatives to monitor progress of the implementation of the privatization process of state owned enterprises in Lesotho.