Lesotho: Constitutional reform and stability (1998-2006) (continued)

The development of the Lesotho highlands water project, which was aimed at meeting the water needs of South Africa's major industrial area in Gauteng, generating electricity for Lesotho, stimulating development and generating revenue for Lesotho (Lesotho Highlands Development Authority 2006), was the occasion for a massive corruption scandal, which culminated in the trial and conviction of Masupha Sole, CEO of the Lesotho Highlands Development Authority, in May 2002 and revealed a web of corrupt practices by several multinationals involved in the project (Darroch 2004). In 2002 royalties earned were M15million/month and that by July, 2002 the Lesotho government had received about M937million and the project will continue to generate streams of revenue in the future, underlining the importance of the scheme to the economy (Lesotho Highlands Development Authority 2002). The vigourous prosecution of the corruption case also enhanced the image of Lesotho amongst donors and potential investors. Further, the effects of a crippling three year drought came to the fore in 2004, leading the government to appeal for food aid from the international community and underscoring the importance of water management for the agricultural sector of the economy (Columbia Encyclopedia 2007).

Revenue from the highlands project notwithstanding, Lesotho remains one of the poorest countries in the world with a per capita income of only US$402 in 2004 according the IMF, despite a relatively high literacy rate of 90.3% for women and 73.7% for men (see Lesotho: Fact file). The textile industry was threatened by Chinese competition as a result of the opening up of markets and a strengthening of the currency (which is pegged to the South African Rand), but has made a recovery and even expanded (IRIN 2006). However with massive unemployment (63.5% in 2004 according to the Global Policy Network & Lesotho Clothing & Allied Workers' Union) and insufficiently high growth rates to reduce unemployment (4.8% in 2006 according to the Lesotho Central Bank) prospects for improvement in the situation the immediate future are poor. The Kingdom has been very hard hit by the HIV/AIDS plague (see Lesotho: Fact file); according to UNAIDS the prevalence rate in the 16-45 year group was 23.2% in 2005, life expectancy had declined to 37.7 years for women and to 34.6 for men by 2003 while the population was forecast to shrink by 0.3% a year on average in the period 2003-2015.

Constitutionally, all else being equal, Lesotho was scheduled to hold elections for the National Assembly in May 2007, but a split in the ruling party led to them being held earlier than was expected, catching opposition parties off guard and finding the Independent Electoral Commission unprepared (Matashane-Marite et al 2007, 1-2). In October 2006 the Minister of Communications, Motsoahae Thobane reigned from the government and the ruling LCD to form the All Basotho Convention (ABC), citing lack of service delivery and abuse of state resources for doing so (Matashane-Marite et al 2007, 5-6). The defection of MPs from the ruling party was sufficient to endanger the government's majority in the National Assembly, resulting in the early dissolution of Parliament and the scheduling of elections for 17 February 2007 (Matashane-Marite et al 2007, 6). The outcome of the election was a victory for the LCD and its ally the National Independent Party, who garnered 82 of the 120 seats, while the ABC and its ally the Lesotho Workers Party obtained 27 seats (for more detail on the election see 2007 National Assembly election results). The once significant Basutoland Congress Party and Basotho National Party won only 1 and 3 seats respectively.

References

COLUMBIA ELECTRONIC ENCYCLOPEDIA 2007, "Lesotho History", 6th ed, Infoplease/Columbia University Press [www] http://www.infoplease.com/ce6/world/A0859249.html [opens new window] (accessed 23 Oct 2007).

DARROCH, F 2004 "Lesotho Highlands Water Project - Corruption and Debarment", Probe International, [www] http://www.ipocafrica.org/cases/highlands/anticorrupt/corrdebar.pdf [PDF document, opens new window] (accessed 23 Oct 2007)

IRIN 2006 "Textiles no longer hanging by a thread", 3 July 2,[www] http://www.IRINnews.org/report.asp?ReportID=54370 [opens new window] (accessed 23 Oct 2007).

LESOTHO HIGHLANDS DEVELOPMENT AUTHORITY 2002, "Frequently Asked Questions", IN Lesotho Highlands Water Project, [www] http://www.lhwp.org.ls/overview/default.htm [opens new window] (accessed 23 Oct 2007).

LESOTHO HIGHLANDS DEVELOPMENT AUTHORITY 2006, "Overview of the Lesotho Highlands Water Project", IN Lesotho Highlands Water Project, [www] http://www.lhwp.org.ls/overview/default.htm [opens new window] (accessed 23 Oct 2007).

MATASHANE-MARITE, K, MAPETLA, MM & MONYAKE, M 2007 EISA Election Update 2007: Lesotho 1, 31 January.