Legal Intelligence · Lesotho

Lesotholegal & regulatory news

Briefly tracks court rulings, legislation, gazette notices, and regulatory developments across Lesotho — curated daily from Lesotho's courts, regulators, and leading legal publications. 8 updates tracked in the past 30 days, last updated 25 Jul.

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Legal News
Lesotho
Legal News

Lesotho Citizens Lose Millions to SGK Pyramid Scheme

Lesotho Citizens Lose Millions to SGK Pyramid Scheme In Lesotho, a popular mobile app called SGK promised its users guaranteed returns for watching videos. However, the scheme has come under scrutiny after it stopped paying out, leaving thousands of citizens with significant financial losses. The legal significance of this development lies in the fact that pyramid schemes are illegal in Lesotho and other jurisdictions. The country's laws prohibit business practices that involve recruiting members with promises of high returns, which is essentially what SGK did. This raises questions about how such schemes can operate with impunity for so long. The relevant statutes involved in this case include the Companies Act 1982 and the Consumer Protection Act 2008. These laws aim to protect consumers from unfair business practices and ensure that companies operate transparently. The courts of Lesotho, particularly the High Court, have a history of upholding consumer rights and holding businesses accountable for their actions. The key parties involved in this case are the victims of the pyramid scheme, who are seeking compensation for their losses. The authorities, including the police and regulatory bodies, are also likely to be involved in investigating and prosecuting those responsible for the scheme. Practitioners should monitor this development closely as it highlights the need for vigilance against such schemes and the importance of protecting consumer rights.

24 Jul
Briefly
Case Law
Lesotho
Case Law

Nozihle Construction and Projects CC v Special Investigating Unit ZAST: Tribunal Rule Compliance Ruling

The South African High Court has granted an application by the Special Investigating Unit (SIU) to freeze assets of Nozihle Construction and Projects CC in a matter related to alleged corruption. This development is significant for practitioners as it highlights the ongoing efforts of the SIU to combat corruption and recover assets allegedly misappropriated through corrupt activities. The SIU's application was made under Rule 27(3) of the Tribunal, but relied on Rule 12 of the High Court, indicating a nuanced approach to asset forfeiture in South Africa. The legal context of this matter is governed by the Prevention of Organised Crime Act (POCA), which provides for the SIU's powers to investigate and recover assets allegedly obtained through corrupt activities. The POCA also establishes the Tribunal as a specialized forum for hearing matters related to asset forfeiture. Key parties involved in this matter include the SIU, Nozihle Construction and Projects CC, and the High Court of South Africa. Practitioners should monitor this development closely, particularly those dealing with asset forfeiture and recovery under POCA. Practitioner takeaway: Attorneys handling cases involving alleged corruption and asset forfeiture should be aware of the evolving legal landscape in South Africa, including the SIU's powers and the Tribunal's role in hearing such matters. They should also consider the implications of Rule 12 of the High Court on asset forfeiture proceedings.

24 Jul
Lesotho
Case Law

High Court of Lesotho Rejects Constitutional Challenge to LHWP Compensation

The recent ruling by a superior court in Lesotho, rejecting a constitutional challenge related to compensation claims stemming from the Lesotho Highlands Dam project, marks a significant procedural development for thousands of affected villagers and businesses. While this decision closes one specific avenue for redress, it is crucial to note that the court explicitly affirmed that claimants retain the right to pursue their compensation claims through the High Court. This means that while a broad constitutional declaration or systemic remedy sought through the constitutional challenge may not be forthcoming, the door remains open for individual or collective civil litigation to secure compensation for damages and losses incurred due to the massive infrastructure project. The ruling thus refines the strategic landscape for legal professionals representing those impacted by the dam's construction and operation. This judgment carries substantial legal significance for practitioners and businesses operating within Lesotho's regulatory environment, particularly concerning large-scale public works. The rejection of the constitutional challenge underscores the judiciary's approach to distinguishing between fundamental rights claims and ordinary civil disputes, even when the latter arise from state-led projects with profound social impacts. For the Lesotho Highlands Water Project (LHWP), a multi-billion-dollar initiative managed by the Lesotho Highlands Development Authority (LHDA) under the Lesotho Highlands Development Authority Order, 1986, compensation has been a long-standing and contentious issue. The ruling effectively channels future claims into the High Court's civil jurisdiction, where remedies will likely be sought under principles of contract, delict (tort), or specific statutory provisions governing expropriation and compensation for public purposes, rather than through a direct constitutional declaration of rights. The key parties involved in this ongoing legal saga are the thousands of villagers and businesses who have suffered displacement, loss of land, livelihoods, and other damages due to the construction and operation of the Lesotho Highlands Dams. The primary respondent in such claims is typically the Lesotho Highlands Development Authority (LHDA), often acting on behalf of the Government of Lesotho, which is responsible for the project's implementation and adherence to compensation protocols. The court that rendered this decision would be a superior court with constitutional jurisdiction, likely the High Court of Lesotho sitting as a Constitutional Court, or potentially the Court of Appeal. The legal framework governing these claims extends beyond the Constitution to include the LHDA Order, 1986, and potentially other land acquisition or environmental protection statutes, all of which outline the responsibilities for fair compensation. For attorneys representing affected communities or businesses, the immediate takeaway is a clear directive to pivot litigation strategies towards the High Court's civil jurisdiction. This necessitates meticulous preparation of individual or class-action claims, focusing on detailed evidence of loss, causation, and the application of relevant statutory and common law principles. For businesses contemplating or engaged in large infrastructure projects in Lesotho or similar jurisdictions, this case serves as a critical reminder of the paramount importance of robust social and environmental impact assessments, transparent and fair compensation frameworks, and proactive engagement with affected communities. Failure to adequately address these aspects can lead to protracted and costly litigation, even if constitutional challenges are unsuccessful. Practitioners should closely monitor the progress of High Court claims, any potential appeals of this constitutional ruling, and legislative developments concerning compensation for public works, as these will shape the future landscape of legal redress in such matters.

8 Jul

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