STATEMENT REGARDING THE M.K.M. AND MILLENNIUM GOAL SOCIETY INVESTIGATIONSBY  GOVERNOR, CENTRAL BANK OF LESOTHO

The Central Bank of Lesotho wishes to make a statement to update the general public with regard to the progress made to-date on the on-going investigations about the Millennium Goal Society and M.K.M. Star Lion Group entities. The public will recall that on the 27^th  November 2007, the High Court   of Lesotho granted two Court-Orders against the Millennium Goal Society and M.K.M. respectively. These Court Orders gave the appointed agent (PWC) of the Central Bank of Lesotho powers or an authority to determine total liabilities (or the total amounts owed to depositors of these two companies on the one hand, and to assess total value of their assets. The Court Order gave the CBL  90 days to complete this exercise and present their findings and recommendations to the Court.

The public will recall that on 29^th November 2007, the High Court issued another  Order which authorized the M.K.M. to continue to provide the funeral services as a burial undertaker while   other activities of banking and insurance business  were suspended pending the completion of the investigations.

It is now over two months  since the aforesaid Court Orders were issued hence the need to report back to the public. It is important to note that since this matter is still before the Courts of Law, efforts will be made by the CBL to avoid any statements that may be construed as influencing the court proceedings. Therefore, we will not express any opinion on these matters but rather focus on facts only.

Millennium Goal Society

 Information and documents from Millennium Goal Society was obtained speedily. The case was heard on the return date of the 13^th December 2007.  The outcome of the case will be heard on 11^th February 2008.

M.K.M/ Star Lion Group entities.

Contrary to expectations, the Central Bank encountered resistance from the senior officials and employees of the M.K.M. (Star Lion Group), as well as some unidentified members of the public in obtaining information and documents. Several options were considered to address these challenges, including litigation against MKM for contempt of court and possible use of force. The Bank decided that in the prevailing circumstances where lives could be endangered the best route to take was to keep soliciting cooperation from MKM. This process took time and as a result very little progress was made during the month of December 2007.

From the 27^th November to-date,  the following key activities took place :

• On the 14^th December 2007, the Judge on duty recused himself from the case on grounds of personal interest and set the new date for the case as 4^th February.

• Given the delays the Bank experienced at the M.K.M. premises, extra efforts were made to re-negotiate with M.K.M to secure its cooperation.  These negotiations took place on the 14^th December and culminated in a signed understanding being reached between the parties in order to facilitate the investigation and the implementation of the Court Order.

• Following the agreement entered into  with the MKM/Star Lion Group, the Bank was allowed back to the business premises. It should also be noted that to date  this agreement is not strictly respected by the MKM/Star Lion Group as they deploy various techniques to delay the process. 

• On the 4^th February, the Judge assigned to hear the case had other commitments and therefore the case was not heard. The case was then reallocated to another Judge and further postponed to the 19^th February 2008 for hearing.

The public is assured that the Bank is doing everything in its power to ensure the matter is brought to conclusion.

8^th February 2008