Moorosi Tsiane
NEWLY appointed Sekhametsi Investment Consortium (SMIC) Chairperson, Mr Thuso Green, has dismissed as baseless allegations that he and the new board are attempting to cover up the alleged disbursement of over M25 million to companies linked to Prime Minister Sam Matekane and Revolution for Prosperity (RFP) chairperson, Teboho Kobeli.
Ousted chairperson Selikane Selikane has accused Mr Green and his board of orchestrating their illegal removal to block the tabling of a forensic audit report.
He claims the report would expose how the funds were unlawfully disbursed to companies associated with Matekane and Kobeli.
Mr Selikane, alongside former directors Tšeliso Ntabe, Bore Motsamai, Teboho Lekalakala, Mohapeloa Mohapeloa and Lebohang Mohau, approached the Commercial Division of the High Court seeking their reinstatement and an order barring Mr Green and his team from accessing SMIC accounts.
In his founding affidavit, Mr Selikane warns of “irreversible repercussions and deleterious consequences” if Mr Green and his team succeed to block the tabling of the audit.
He argues that shareholder concerns regarding financial mismanagement justified commissioning a forensic audit. His application, filed two weeks ago, was on Monday declared urgent by Justice Moroke Mokhesi, who gave both parties deadlines to file court papers.
The hearing date is set to be determined on 4 August 2025.
However, in his answering affidavit, Mr Green rubbishes the allegations and counter-argues that the same investments were made during Mr Selikane’s tenure as chairperson.
“It is interesting that the applicants complain about the loans to Verve Dynamics Incorporated Lesotho (Pty) Ltd and Afri Expo Textiles (Pty) Ltd, given when they were in control of the affairs and business of Sekhametsi, but now seek to suggest that such loans were granted in secrecy. In any event, the forensic audit will determine the veracity of the allegations made by the applicants,” Mr Green stated.
“As far as I am aware, Verve Dynamics is still operational. It grows medical cannabis and other pharmaceutical perennial crops. It also produces pharmaceutical products from the same plants. It therefore constitutes a good investment in the context of Lesotho.
“In the same manner, Afri Expo Textiles is still operational and supplying local consumers such as the army and the police with uniform. I admit that the United States administration imposed trade tariffs on the textile sector in Lesotho, but this would not cripple Afri Expo, which has a bigger market share in Southern Africa than America. It follows that the applicants’ prophecy that the two respondents will not be able to repay constitutes mere speculation.”
Mr Green also denies allegations that Dr Mphu Ramatlapeng facilitated the removal of the former board illegally, stating that all concerned parties were fully aware that the 1 June 2025 meeting agenda included a resolution to remove directors.
“In the present matter, the shareholders requisitioned a special meeting in terms of which they made it clear that, among the agenda items to be considered on 1 June 2025, was the resolution intended for the removal of directors. The voting for the removal of the directors was conducted.
“It follows, therefore, that the second to seventh applicants were removed lawfully in accordance with the procedures contemplated in Section 73 of the Companies Act. As such, the jurisdictional requirements of this section were met.
“In any event, the applicants participated in the voting process that led to their removal and the appointment of new directors to replace them. They participated in that process fully aware,” he said.
Mr Green has also filed an urgent counter-application in which he asks the court to recognise the new board as the legitimate one and allow them full control over SMIC affairs.
He claims that shareholders removed Mr Selikane and others because they had failed to implement shareholder directives and had allegedly misused SMIC funds by assuming managerial duties.
“On 9 April 2025, the shareholders requisitioned a special meeting in terms of which they proposed the removal of the directors. This was signed by shareholders who held shares representing not less than 20 percent shareholding of Sekhametsi.
“The notice further revealed the reasons for the removal of the board. One of the reasons was that the board ignored the directives and resolutions which were made during the previous annual general meeting of shareholders. The shareholders further demonstrated that the board of directors, in violation of the decision and resolution of the annual general meeting, brought Mr Leabua Makhate into the board despite a clear instruction that he should no longer participate in board activities and resolutions.
“Of particular concern to the shareholders was that the entire board had, contrary to the resolutions of the shareholders in the previous annual general meeting, continued to exercise managerial and executive powers, with the result that they failed to put management — including a chief executive officer or managing director — into office.
“The board had continued, as a result of their assuming managerial responsibilities, to incur additional unnecessary costs and thus increased the expenditure associated with the activities of the board, resulting in excess budget and, in some cases, unbudgeted expenditure. The operational expenditure of the board meant that the first applicant had diverted its cash resources from its core business.
“Fundamentally, the shareholders were concerned that, despite their clear resolutions in the previous annual general meeting that there should be communication with the owners of the land on which the Khubetsoana Lifestyle Centre was to be constructed, the board had failed in that regard,” Mr Green claims.
Mr Selikane and his co-applicants are represented by Advocate Christopher Lephuthing, while Mr Green and the other 23 respondents are represented by Attorney Qhalehang Letsika and Advocate Salemane Phafane KC.
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