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Lesotho

Airline, mines in diamond tiff

‘Mantali Phakoana

A Lesotho domestic airline providing cargo and charter flights has accused four major local mines of allegedly acquiring temporary airspace permits fraudulently, thus resulting in it incurring a massive revenue loss.

Mohahlaula Airlines accuses Letṧeng Diamonds Mine, owned by London Stock Exchange-listed Gem Diamonds, Storm Mountain Diamonds owned by Namakwa Diamonds, Liqhobong Diamond Mine owned by Firestone Diamonds, and Mothae Diamond Mine owned by Lucapa Diamond Company, of refusing to comply with the Mining and Minerals Act, 2005 and the Civil Aviation Act, 2008.

Mohahlaula Airlines managing director, Phafane Nkosi told theReporter that his company had opened a loss of income case against the mines and the government of Lesotho at the Lesotho Mounted Police Services (LMPS) on April 17 2023.

LMPS assistant public relations officer (PRO), ‘Mareabetsoe Mofoka said her office was still consulting the relevant offices to establish if any progress has been made in resolving the matter.

Respondents in the case are former Letṧeng Chief Executive Officer (CEO) Kelebone Leisanyane, Mohale Ralikariki (Storm Mountain Diamonds), Stian Van Blerk (Mothae Diamond Mine), Motsie Chele (Liqhobong Diamond Mine), and Alice Sesinyi (department of Civil Aviation).

Nkotsi alleges the Department of Civil Aviation had been aiding the diamond mines to fraudulently acquire temporary airspace permits since January this year. 

He said it was worrying that since then, the police had kept him in the dark about progress made in the case even when he made efforts to inquire about it.

“It’s been two weeks since I wrote to the commissioner of police (Holomo Molibeli) seeking an update on the status of the case but got no response. I do not know if the police are still investigating the case or if it has already been taken to court,” Nkosi noted.

The alleged unlawful acquisition of fraudulent temporary airspace permits, Nkosi said, has resulted in a probable revenue loss of M10 million for Mohahlaula Airlines between January 25 and March 28 this year.

Nkotsi insists that he confronted the government and the mines on the matter through several meetings facilitated by both the Director of Civil Aviation and the Commissioner of Mines.

He said in one of those meetings, disturbingly ominous comments were made by the Commissioner of Mines, Pheello Tjatja who stated: “You (Mohahlaula Airlines) are dealing with giants; they will not agree to compliance.”

But, Tjatja denied the allegations made by Mohahlaula, describing them as ‘baseless and unfounded’.

Tjatja said there was no way he would have uttered such statement in an open meeting with the aforementioned mines, Mohahlaula, Matekane Group of Companies (MGC), director of Civil Aviation and security companies that transport diamonds.

He indicated that after the mines had reported to him that they were no longer provided with permits to transport diamonds, he approached the director of civil aviation as the department that offers such permits.

The commissioner said the response he got was that the department was considering localising the transportation of diamonds, adding that they (civil aviation) gave an assurance there was competence in local airlines.

“I then asked the director of civil aviation about who she had been discussing this matter with until they reached the conclusion that the local airlines were capable of transporting diamonds oversees; she told me she had talked with the mines.

“I told her it was not procedural to talk with the mines because they were not the ones responsible to apply for airspace permits but the security companies hired by the mines to transport diamonds.

“In this case, our local mines hire security companies, so it is their responsibilities to apply for the permits not that of the mines. That is how the meeting came by. I initiated it because I supported the localisation of diamond transportation,” Tjatja explained.

He said the purpose of the meeting was to tell both Mohahlaula and MGC about the decision to localise transportation of diamonds and implore them to apply to the mines but they failed to do so.

However, Tjatja said last year, Mohahlaula was given a chance by local mines to transport diamonds but the company disappointed when they brought a South African chopper from MCC Aviation not his own airplane.

He added that the mines had agreed to partner with Mohahlaula and even promised to give the company 10 percent over the actual charged amount, as a way of showing support to local airlines. This was until the department discovered that the company does not have enough airplanes.

“When the mines demanded to see the airplane, Mohahlaula brought an SA plane from MCC (Multi Crew Co-operation) Aviation, and apparently wanted to charge double the price, that is where the problem erupted. I could not agree with that. One of my duties is to ensure diamonds are transported but also that the mines are not robbed by airlines,” Tjatja said.

Contacted for comment last week, Storm Mountain Diamond CEO Mohale Ralikariki said he did not know what Nkosi was talking about.

“I have heard of his (Phafane Nkosi) allegations but unfortunately I will not be able to comment on that because I do not understand the meaning of what he claims,” Ralikariki pointed out.

Letṧeng Chief Executive Officer, Motooane Thinyane, also dismissed Nkosi’s allegation.

“The allegation is false,” Thinyane said in a written response to questions by this publication.

He noted that the matter of Temporary Airspace Permits has been part of ongoing engagements between the mines and Civil Aviation over time.

He also indicated that Mohahlaula had engaged in direct correspondence with Letšeng and has been responded to.

“You will appreciate that for security reasons, we are not at liberty to disclose which company we use for the export of diamonds, especially if this information is going to be made public,” Thinyane added.

In another development, Basotho National Party (BNP) leader, Machesetsa Mofomobe wrote letters to the London Stock Exchange and the Australian Security Exchange, seeking their intervention against Gem Diamonds (Letṧeng Diamonds Mine), Firestone Diamonds (Liqhobong Mine), Lucapa Diamond Company (Mothae Diamond Mine).

In the letters, Mofomobe said he was ‘deeply’ troubled by the ongoing transgressions committed by Gem, Firestone Diamonds and Lucapa Diamond Company within Lesotho’s borders.

“The crux of the issue lies in a local airline company that has been deliberately refused to transport diamonds as per Lesotho’s Mining and Mineral Act, 2005 and the Civil Aviation Act, 2008.

“This airline has sought parliamentary intervention and it is my belief that the government of Lesotho is utilising its parliamentary majority to ensure that Gem Diamonds and Firestone Diamonds continue to undermine our nation’s laws. “Given the aforementioned circumstances, I kindly request that the London Stock Exchange thoroughly investigate the actions of Gem Diamonds and Firestones regarding their compliance with Lesotho’s Mining and Aviation regulations,” Mofomobe said in letters dated July 9 2023.

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