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Explosive revelations at giant cannabis firm

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  • Local director exposes shady practices
  • Millions in revenue for government lost

In a dramatic showdown during the Social Cluster Portfolio Committee meeting this week, Morama Holdings, a leading cannabis company in Lesotho, was thrown into disarray as local shareholder and director, Moelo Ramahlele, unleashed a scathing critique against the firm’s executives.

The meeting, charged with tension, painted a dark portrait of non-compliance and deceit.

Lee-Anne Jacobs, the firm’s Chief Operations Officer, told the committee that the company invested M2,500,000 to purchase at least 12 fields.

Jacobs added that to date, investors have contributed M100 million to the company, which currently employs 43 unskilled workers, 20 part-time staff, and four managers.

She claimed that since starting operations in 2019, Morama Holdings had only executed one export in June 2024.

However, Moelo Ramahlele, a local shareholder and a board member, contested this, asserting that she had signed multiple export permits for both international and domestic shipments, suggesting a cover-up of the company’s true export activities.

Scott Henson, the CEO of Morama Holdings, defended the singular export claim and explained that the company has not distributed dividends due to the lack of profit, having only one export to show.

Despite this, Henson projected billions in future revenue, fuelled by heightened demand, particularly from Germany, which is looking to double its cannabis imports.

The committee meeting also shed light on a staggering M6 million revenue loss for Lesotho due to cannabis companies failing to renew their licenses.

This was disclosed by Mokhothu Makhalanyane, Chairman of the Social Cluster Portfolio Committee, during a confrontation with representatives from the Ministry of Health and Morama Holdings.

The nation had expected to rake in over M6 million (specifically, M6,750,000) from license renewals for the 24 operational cannabis companies in 2023, but only managed to collect M750,000.

“Out of the 24 companies operating, only two complied with renewing their license. This revenue was intended to address deficiencies within the Ministry of Health,” Makhalanyane stated.

He further noted that apart from license fees, the government expects to generate revenue through dividends and taxes.

“This year, we are starting with Morama Holdings to ensure compliance, and this process will extend to all companies,” he added.

However, Ramahlele challenged the ministry’s portrayal of the company as having a good compliance record, exposing what she described as a questionable adherence to local laws.

She detailed a litany of grievances, ranging from opaque hiring, governance issues to lack of transparency.

“When we started, 99 percent of the workers were not local and lacked proper documentation, despite there being local skills available. Moreover, we have management staff employed by the company in Lesotho but not residing here. They should have documentation proving they work in Lesotho and be taxed accordingly, but this isn’t happening since they’re not living in the country,” she said.

She further criticised the governance structure.

“There’s a board for Agri-BioMed, the foreign partner, and a separate one for Morama Holdings, which includes local shareholders. The problem is that Agri-BioMed makes decisions and imposes them on Morama Holdings, often to the dissatisfaction of local shareholders,” she said.

Ramahlele also highlighted the lack of transparency in hiring management stating that no advertisements were issued for management positions.

“Shareholders are only made aware once someone has already joined the company,” she said.

She added: “The core issue is our lack of access to operational information at Morama Holdings. We can’t even agree or dispute dividend proposals because all relevant data is processed in South Africa and sent directly to its final destination in Lesotho without informing the shareholders. We don’t have access to this information, not even what’s reported to the Revenue Services Lesotho (RSL).”

Lesotho stands out as one of the few African nations exporting cannabis to international markets, including Australia, Portugal, Canada, and South Africa.

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