…amid cable theft, scrap metal smuggling concerns
A local scrap metal recycling firm, Tšepe Recyclers, has expressed dismay at the members of the Lesotho Mounted Police Service (LMPS) for arbitrarily confiscating its processed copper and alluminium stock worth nearly M500 000, without basis.
The company claims that the continued withholding of its stock is crippling its business operations, which have been set up through a M10 million foreign direct investment (FDI) into Lesotho.
Established in 2023, Tšepe Recyclers collects and processes scrap metal and export it to overseas markets, marking a shift from the predominantly South Africa-bound exports.
In a strong -worded letter addressed to the CEO of the Lesotho National Development Corporation (LNDC), advocate Thabo Lerotholi, the CEO of Tšepe Recyclers, alleges that police officers attached at the Lesotho Electricity Company (LEC) acting alongside LEC staff randomly seized company property that was lawfully acquired and ready for export.
He said they expected the raid to have been informed by someone who claimed that their property has been stolen, but in this case there was none.
The confiscated metals were allegedly seized despite earlier verification by police officers that the company’s premises located in Marabeng contained no stolen goods.
“To our great dismay they came back the next day with a team of LEC staff, and seized a massive stock of copper and aluminium worth nearly M500,000,” Lerotholi wrote.
“This stock was already processed and ready to be shipped to the Durban Port for overseas. The only explanation for this arbitrary unilateral seizure we got …was that they needed to be verified if it was stolen from LEC or not. ”
The seizure took place in June following an initial search by police who had reportedly found nothing suspicious at the time.
Despite repeated efforts to clarify ownership of the goods, including interviews and submission of documentation to the police, Tšepe Recyclers says the materials remain impounded, and no charges have been laid against any member of its staff.
Tšepe Recyclers, which has already invested more than M10 million in Lesotho, is in the process of securing a sublease agreement with LNDC and has made ambitious plans to create over 1,000 jobs in the next two years.
Advocate Lerotholi warned that the current impasse threatens not only those jobs but also the company’s long-term viability in Lesotho.
“In light of the prevailing circumstances, we feel as the Board of Tšepe that Tšepe is being forced to exit the market and leave the Kingdom of Lesotho,” he wrote, urging the LNDC to intervene urgently.
The company had recently partnered with LNDC in showcasing its operations to potential investors in South Africa, presenting itself as a viable player in attracting foreign direct investment and boosting employment in the country.
While acknowledging the role of police in curbing theft, especially in a scrap industry known for criminal infiltration, advocate Lerotholi insisted that law enforcement must act within legal bounds.
“We certainly have no problem when the police carry out their job where there is reasonable suspicion… However, where the police seem to be collaborating with our competitors in acts of sabotage, the law must also take its course to protect our business.”
Contacted for comment, the Commissioner of Police, Borotho Matsoso, indicated that the police were currently continuing with their investigations regarding the property in question. He referred this publication to Deputy Commissioner of Police, Paseka Mokete for further indulgence.
On his part, DCP Mokete explained that while they were cognisant of the need to expedite their investigations on the matter, they still needed to be meticulous due to the widespread problem of vandalism on power and telecommunications cables, which tend to find their way to the scrap metal companies.
He also dismissed the allegations that the police were working in cahoots with Tšepe’s competitors to plot its downfall.
“We are fully aware that we must carry out our investigations timeously, but unfortunately we must verify the authenticity of the claims of the scrap company regarding the source of their stock, and this process takes time,” DCP Mokete told Newsday.
“For us it is not enough for the scrap company to provide us with the information. We still have to verify it ourselves.
“The country is also grappling with a high rate of vandalism around across the country particularly on transmission cables, and since the scrap company has claimed to have sourced its copper cables from the custodians of these cables, we have to verify all these beyond reasonable doubt before we can release the impounded property.”
At this stage it is not clear whether the ongoing police investigations will lead to a court case against Tšepe or not.
Elaborating on their suspicion of foul play by the men in uniform, advocate Lerotholi told Newsday that the police of failed to disclose whether there was anyone who reported stolen cables to warrant a raid on Tšepe Recyclers.
“You do not raid a legally operating business without any grounds. Who was complaining of theft of their property? They could not disclose that.”
He further indicated that smuggling of scrap metal out of the country through a certain port of entry is going on unabated, which is hurting his legally operating entity.
“We believe there is rife smuggling of scrap metal between Lesotho and South Africa, and the government’s lackluster stance in curbing it is hampering legally operating businesses.
“We are competing with South African companies for the scrap metal from Lesotho, and our prices are superior to theirs. In other words, the police are betting wrong on the wrong horse. And that is unfair and unfortunate considering the economic potential of this venture in the country.”
Apart from the confiscation of their stock, advocate Lerotholi also indicated that they had to content with a series of break-ins at their business premises, where their equipment was stolen.
The LNDC and LEC declined to comment saying they do not interfere with law enforcement matters. LEC only added that it is common knowledge that it lost over M10 million worth of cables to vandalism during the past financial year.
Authored by our expert team of writers and editors, with thorough research.
