Green rush tainted

As health minister threatens license purge amid corruption claims

TEBOHO KHATEBE MOLEFFI
MASERU – Lesotho’s pioneering medical cannabis industry, once hailed as an economic lifeline for the country, has from inception been engulfed in allegations of corruption and bribery surrounding the issuance of lucrative cultivation licenses.

The crisis has escalated dramatically with health minister, Selibe Mochoboroane, declaring he will revoke licenses held by operators failing to comply with legislation, casting a shadow over the sector’s future.

The minister has invoked Section 23 of the Drugs of Abuse Act of 2008 – as amended. Minister Mochoboroane’s stark warning, delivered in a statement released in Maseru last week, comes amidst mounting whispers and direct accusations within the industry.

“The Ministry of Health reminds all cannabis operators that licenses are valid for 12 months and must be renewed each year, as required by the Drugs of Abuse Act of 2008,” the Minister stated. “Previously, the Ministry requested all license to report on the operational status of their businesses. This was a legal requirement…”

Compliance with the laws and regulations governing the cultivation, processing, and export of medicinal cannabis is not optional, and those who fail to meet the required standards, including operational and ethical benchmarks, will face cancellation of their licenses, according to the minister’s statement – which suggests that government will not tolerate operators who disregard the law.

Mochoboroane has declared that licenses not reported to the ministry are considered cancelled, those not renewed within 12 months are similarly considered cancelled, adding that “cancelled licences will not be renewed. Operators must reapply as new applicants if they wish to continue operating.”
This ultimatum strikes at the heart of persistent allegations that have plagued the cannabis sector since its legalisation for medicinal purposes in 2017, making it Africa’s first legal exporter.

Multiple sources within the industry, speaking anonymously for fear of reprisal, allege a pattern of irregularities such as bribery for licenses – with claims that significant bribes were paid to officials within the Ministry of Health and other relevant bodies to secure cultivation and processing licenses. These allegations suggest a ‘pay-to-play’ system favouring well-connected individuals or foreign investors over potentially qualified local entities.

There are also concerns of ‘ghost’ license holders and allegations that some licenses were issued to entities with no demonstrable capacity or intent to cultivate, possibly acting as fronts or holding assets for speculative resale at inflated prices; this includes lack of due diligence – fuelling accusations that proper vetting processes for financial backing, technical expertise and adherence to security protocols were bypassed for certain applicants.

Observers also point to a significant number of licensed projects that have failed to materialise into operational farms or processing facilities years after licenses were granted, raising questions about the legitimacy of the initial approvals.
“These aren’t just rumours,” said one industry consultant who has worked with multiple license applicants.

“There’s a palpable sense that the playing field wasn’t level. Certain applications seemed to magically jump the queue or overcome hurdles that stalled others, fuelling suspicion about under-the-table dealings.”
These allegations threaten to derail an industry with immense potential for the country. Touted as a means to diversify the economy away from diamonds and water, create thousands of jobs, and generate vital foreign exchange, the legal cannabis sector promised significant upliftment, particularly for impoverished rural communities long familiar with illicit cultivation.

International investors poured millions into the nascent market, drawn by Lesotho’s head start and favourable climate.
However, the cloud of corruption has fostered uncertainty and disillusionment. Reputable international operators express frustration at competing against entities allegedly benefiting from graft. Local farmers hoping to transition to the legal market feel side-lined.

Crucially, the allegations damage Lesotho’s reputation as a stable, rules-based investment destination for this sensitive global industry.
“The minister’s statement is a necessary step, but it’s reactive,” commented another industry insider, based in Maseru, who opted for anonymity “The damage to investor confidence might already be significant. Cancelling non-compliant licenses is crucial for integrity, but the government must simultaneously demonstrate a thorough, transparent investigation into how those licenses were issued in the first place. Sweeping this under the rug will only prolong the crisis.”
Minister Mochoboroane did not directly address the specific corruption allegations during his announcement, focusing instead on future compliance. He appears focused on possible government’s commitment to a “clean, well-regulated, and beneficial” cannabis industry operating within the strict frameworks of the Drugs of Abuse Act and associated regulations.

He stated licensees would, within the given 12 months, have to demonstrate adherence to requirements covering security, cultivation standards, processing facilities and financial reporting.
Reaction within the sector is mixed. Reputable operators welcome the crackdown on non-compliance, viewing it as essential for the industry’s long-term health and international standing. However, others express anxiety.
“The minister is wielding a big stick, and rightly so on compliance,” said another industry player that this paper spoke to, who asked “but the elephant in the room is the original sin – how did allegedly unqualified or corrupt entities get licenses? Until there is accountability for that, and a demonstrably transparent process moving forward, the sector’s reputation will remain tarnished.”
Lesotho’s cannabis rush stands at a crossroads.

Minister Mochoboroane’s threat of license cancellations is a bold move to assert control and legitimacy.

However, restoring full confidence in the sector demands more than just enforcing future rules, it requires confronting the uncomfortable allegations of past misconduct that threaten to choke the potential of this vital industry before it fully blossoms.

The next 12 months will be critical, but the shadow of corruption may take much longer to dispel.