Inflated Deals A Debt Trap for Lesotho's Future Generations

Unless Lesotho governments refrain from the habit of awarding grossly inflated tenders for various infrastructure projects, future generations will be caught up in a massive debt trap which will only impede the country's development, analysts have warned. This follows the Lesotho Times' recent exposé of a massive scandal in which former prime minister Thomas Thabane's government allegedly agreed to a grossly inflated M2,8 billion (U.S.$181,7 million) deal with a Chinese contractor for the construction of a solar power generation project. The project has now been inherited by the current Moeketsi Majoro-led government after the collapse of the Thabane administration in May 2020. Low-income countries have been especially hard hit by the economic downturn caused by the Covid-19 pandemic, leading to more people needing assistance for their basic needs.


(File photo).

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