Lesotho May See Global Assets Seized After Contract Breach

Lindiwe Hloaele in the middle of her journey home to Thabaneng village, mounting a rocky slope with 25 litres of water on her head. (Photo: Sechaba Mokhethi)

Lesotho faces having 50 million euros ($61 million) of its assets seized around the world after breaching the terms of a contract with Frazer Solar GmBH.

By Antony Sguazzin

Word Count: 182
(Bloomberg) — 

Frazer Solar, which began legal action against the southern African nation in 2019 after what it said were a series of contractual breaches, won an arbitration proceeding in South Africa, in which it was awarded the damages, the company said in a statement on Tuesday. A global enforcement action has now been filed in the District of Columbia in the U.S.

Frazer signed an agreement in 2018 with Lesotho to provide as many as 40,000 solar water-heating systems, 20 megawatts of solar photovoltaic capacity, 1 million LED lights and 350,000 solar lanterns, it said. The company said while an assessment of the damages it incurred amounted to 102 million euros it was awarded 50 million euros.

While the German government agreed to finance the program, the Lesotho finance ministry failed to execute the project’s financial arrangement and the government hasn’t engaged with the legal process, Frazer said.

Lesotho’s government didn’t immediately respond to requests for comment.

(Updates with total damages in third paragraph)

–With assistance from Mathabiso Ralengau.


Comments - Please in order to comment.

  • Angus Auchterlonie says:

    Lesotho has $61m in foreign assets???

  • Johan Buys says:

    Anthony, this needs investigation. The project data is vague but on what is given, the entire project should have cost far less than the damages!

    Frazer exists solely of the Swazi and Lesoth non-project.

    Speak to KfW and some actual experts.

    It would be travesty!

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