Hospitality sector owed M17 million from Games

MASERU – Hospitality businesses that provided accommodation for the African Union Sports Council (AUSC) Region 5 Games earlier this month are still unpaid for the services they provided and they are demanding government pays their money in full. The total amount of money owed is M17 million and, on Tuesday, the Lesotho Hotels and Hospitality Association (LHHA), affected owners and officials from the Ministry of Sport held a meeting to discuss the delayed payments. The ministry was represented by its deputy principal secretary, ‘Majoele Hlasoa, as well as procurement officer Motlatsi Ramoholi and finance manager Masoabi Makosholo. The disgruntled service providers comprised several owners including ‘Marethabile Sekhiba, the LHHA chairperson and owner of Scenery Guest House in Maseru East, ‘Mabohlokoa Thaanyane of Grace Lodging in Roma and Makoae Mosothoane of Cynthia Guest House in Sehlabeng, ‘Mawinnie Kanetsi of Phomolo Guest House in Matala and Maseru East, and Lejang Leteba of Morning Star Lodge in Nazareth were also present. LHHA chairperson Marethabile Sekhiba represented the hospitality association. The businesses want the sports ministry to pay them in full for their services, however, the ministry wants to pay based on how many people stayed at these establishments during the Maseru games. According to the sports ministry’s deputy principal secretary, ‘Majoele Hlasoa, government had a budget of M280 million but only committed M222 million. The ministry wants the businesses to sign contracts where they agree to be paid according to how many people stayed at the establishments before it releases any money to them. The service providers are up in arms, however, and they insist any contracts should have been signed prior to rendering services in case they did not agree with the conditions. They said it is not procedural to sign a contract after providing a service because it now puts them in a vulnerable position. They also complained that government wanted block booking of their accommodation and, as a result, the guest houses and lodges could not accommodate any other guests, whether the Region 5 Youth Games guests arrived or not. The sports ministry has requested the lodges submit a list of guests that stayed at the establishments which is a request the service providers say is unacceptable. The hospitality businesses are rejecting the sports ministry’s proposals because of the losses they have already incurred such as the procurement of new beds to accommodate guests, hiring additional staff, outsourcing services and from loans taken for service rendering. The service providers are demanding their payment in full from the government as they have incurred debts to provide the services and because their services were rendered in full. Hlasoa said the sports ministry has to consult with the Ministry of Finance. She also suggested that the service providers be paid in batches of 40 percent and 60 percent due to a shortage of funds. 40 percent of M17 million would be M6.8 million and that is what the sports ministry is proposing to pay the businesses. Efforts to get a hold of LHHA chairperson Sekhiba proved futile as her phone rang unanswered Tlalane Phahla.