4 November 2024 by Monyane Khau

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The Directorate on Corruption and Economic Offences (DCEO) is investigating the alleged disappearance of unspecified funds paid to the Ministry of Health for cannabis licenses issued between 2017 and 2022.

On November 1, 2024, DCEO spokesperson, ‘Matlhokomelo Senoko, confirmed to Uncensored News that an investigation is underway regarding the cannabis licensing funds.

“The matter is still under investigation, and we cannot disclose the details you are asking for,” Senoko stated.

While the exact amount of funds collected by the Ministry of Health remains unclear, there are currently 198 cannabis licenses issued. Out of these, 75 licenses have not been paid for, reducing the total number of licenses with payments to 123.

Given that each license costs M500,000, the DCEO may be looking for the M61.5 million in missing cannabis license fees.

Uncensored News understand that the DCEO investigation team has started interviewing various officials within the Ministry of Health, as well as former principal secretaries and ministers, to gather information.

Sources claim that the purpose of these interviews is to determine the whereabouts of the funds for the 123 cannabis licenses.

Efforts to obtain a comment from the Ministry of Health were unsuccessful. Ministerial spokesperson Tumising Mokoai stated, “I am in the middle of something; I will call you a little later.” Uncensored News is prepared to publish any ministerial comments once received.

In August 2024, a local newspaper, The Reporter, alleged that the management of the Ministry of Health “have always known and they still know the identity of the mastermind behind the cannabis licensing corruption.”

M650,000 in license renewal fees

As Lesotho addresses the challenge of missing cannabis licensing funds, Social Cluster Portfolio Committee chairperson Mokhothu Makhalanyane said that his committee is conducting a comprehensive investigation into 75 license holders who have failed to pay their cannabis license fees.

“We know that there are 198 issued licenses, but 75 of them did not pay for their licenses, and we are conducting a comprehensive investigation into this matter,” Makhalanyane stated.

Makhalanyane stated that out of the 198 cannabis licenses issued, there are currently 28 licensed and operating cannabis farms in Lesotho.

He said that while they expected 28 farms to pay their license renewal fees each year, only two farms have done so last year, according to the financial records reported to Parliament.

Each of the 28 operating farms is required to pay an annual license renewal fee of M25,000. This means the Ministry of Health was anticipating revenue of M700,000 from these fees, yet only M50,000 was collected in the 2022/23 financial year.

Additionally, the ministry is expected to receive M25,000 for each inspection conducted at cannabis companies, which further adds to the loss of revenue—an estimated M700,000 remains unpaid due to inspection fees.

Makhalanyane emphasised that these inspection fees are crucial for the Ministry of Health to conduct inspections effectively, ensuring that operating farms comply with national laws and fulfill their roles, including the boosting local economy and production of medicinal products.

He made these remarks during a joint tour of Morama Holdings in Berea on October 10, 2024, which included parliamentarians from both Lesotho and Namibia.

Makhalanyane said Morama Holdings was chosen for the joint tour because it is one of the few farms that consistently report to the Ministry of Health in compliance with cannabis licensing conditions.

Meanwhile, a source within the Ministry of Health, who requested anonymity due to lack of authorisation to speak to the media, alleged that this situation further underscores significant discrepancies in the licensing process.

“It exposes our ability to manage this thing, we are really challenged when it comes to effective management of the cannabis industry,” said the source.