US embassy cable - 04MASERU321

UNCLAS SECTION 01 OF 03 MASERU 000321 
 
SIPDIS 
 
AIDAC 
 
DEPT FOR E, AF, AND EB 
PLEASE PASS TO MCC 
PLEASE PASS TO USAID 
 
E.O. 12958: N/A 
TAGS: EAID, ETRD, PREL, LT, MCC 
SUBJECT: MILLENNIUM CHALLENGE CORPORATION INITIAL VISIT TO LESOTHO 
 
1. SUMMARY: The Millennium Challenge Corporation team of Clay 
Lowery, Tom Briggs and Wesley Wilson paid a very successful 
initial visit to Lesotho May 26-28.  Over the course of two and 
a half days, they met with the Prime Minister, nearly the entire 
Cabinet, almost all of the Principal Secretaries, 
representatives of international donors and the business, NGO 
and academic communities, and took a brief tour of the 
industrial areas around Maseru along with a bit of rural 
Lesotho.  The team concluded with a press conference for the 
local media.  Perhaps half of their interlocutors fully 
understood the radical departure from traditional foreign aid 
that the MCA represents.  Minister of Finance Tim Thahane, the 
GOL contact point for the MCA, expects to have Lesotho's 
proposal to the MCC by late August or early September.  END 
SUMMARY. 
 
2. The Government of Lesotho enthusiastically welcomed the MCC 
team to the Mountain Kingdom.  Several of the key ministers, 
including Finance Minister Thahane and Foreign Minister Tsekoa, 
adjusted their travel schedules to return early from overseas to 
meet with the team.  The format of the meetings was essentially 
the same: the team briefly introduced the history and concept of 
the MCC (including the key fact that funding is not/not 
guaranteed), followed by questions and answers.  It was clear 
from the tenor of the comments and questions that about half of 
the interlocutors understood immediately how the MCC differed 
from other foreign aid programs.  Indeed, the most difficult 
concept for most to grasp was that the U.S. was not interested 
in dictating how the program would be run within Lesotho.  For 
many, used to donors telling them what they needed and how to do 
it, the guidance of "make the case for how your program will aid 
economic growth" was unsettlingly vague. 
 
3. Prime Minister Mosisili took the unusual step of inviting the 
team to meet with him in his offices.  Flanked by the Deputy 
Prime Minister and Ministers of Foreign Affairs and Finance, the 
PM welcomed the opportunity presented by the MCA and spoke in 
general terms about investing in infrastructure, health, 
education and agriculture.  He noted how "demeaning" it is to be 
forced to go to the international community for charity to feed 
his people, and thanked the U.S. for the chance to break the 
chains of dependency. 
 
4. At the reception for the team at the Ambassador's residence, 
Minister of Finance Thahane told the Ambassador that he planned 
to have a proposal ready for the MCC by late August or early 
September.  That would give the GOL time to hold the necessary 
consultations with the business, academic and NGO communities to 
produce a well conceived plan. 
 
5. COMMENT: The GOL will have two primary challenges in putting 
together a viable proposal for the MCC.  The first will be 
winnowing down all of the country's competing priorities into 
two or three key areas.  Thahane will have his hands full 
dissuading his colleagues from setting forth a shopping list of 
pet projects, and the Prime Minister may have to step in at the 
end.  The second will be to run a credible consultation process. 
 The academic community in particular was inclined to simply sit 
back and wait for the government to come to them (or for the 
Embassy to force the government into a specific model of 
consultation).  On a more encouraging note, however, the NGO 
representatives asked to continue using an embassy meeting room 
so that they could organize themselves on how they would 
interact with the government.  If nothing else, the MCC model 
may force a bit more initiative into the local psychology.  END 
COMMENT. 
 
6. List of Participants: 
 
CABINET MEETING 
---------------------------- 
 
Deputy Prime Minister and Minister of Education Archibald Lehohla 
Minister of Agriculture and Food Security Daniel Phororo 
Minister of Finance and Development Planning Tim Thahane 
Minister of Forestry and Land Reclamation Lincon 'Mokose 
Minister of Local Government Ponts'o Sekatle 
Minister of Tourism, Environment and Culture Lebohang Nts'inyi 
Minister of Home Affairs Tom Thabane 
Minister of Foreign Affairs Ken Tsekoa 
Minister of Natural Resources Monyane Moleleki 
Minister of Gender, Youth, Sports and Recreation 'Mathabiso 
Lepono 
Minister of Justice Moses Masemene 
Assistant Minister of Agriculture Molise Ts'eole 
Assistant Minister of Trade Mothetjoa Metsing 
Assistant Minister of Justice Mpeo Mahase 
 
MASERU 00000321  002 OF 003 
 
 
Attorney General Fine Maema 
 
(NOTE: Minister of Trade Malie, Minister of Health Phooko and 
Minister of Communications Khaketla were all out of the country.) 
 
PRINCIPAL SECRETARIES MEETING 
--------------------------------------------- ----------- 
Tlohang Sekhamane, Government Secretary (the most senior civil 
servant) 
DPS Foreign Affairs T.P. Lekhela 
PS Education Nsebe Kokome 
PS Trade and Industry David Rantekoa 
PS Finance Dr. Moeketsi Majoro 
PS for Gender, Youth and Sport Tebello Metsing 
PS Employment and Labour Limpho Mandoro 
PS Agriculture 'Mamoruti Malie 
PS Justice Paul Motholo 
PS Cabinet 
PS Home Affairs 
PS Public Works 
 
(Note: in addition, there were another 20 office directors from 
various ministries present in the meeting.) 
DONOR MEETING 
--------------------------- 
 
Ms. Scholastica Kimaryo, Resident Representative, United Nations 
Mr. Frank Martin, High Commissioner of the United Kingdom 
Mr. Albert Warnich, Deputy High Commissioner of the Republic of 
South Africa 
Ms. Maria Rosa de Paolis, Delegation of the European Union 
Mr. Bill Nolan, Irish Consul General 
Ms. Paula Nolan, Development Corporation Ireland 
Ms. Kirsten Roettcher, Coordinator, GTZ 
Ms. Barbara Nkoala, Honorary Consul of Canada 
Mr. Heinz Fiebig, Honorary Consul of Germany 
Mr. Jean-Michel Freville, Honorary Consul of France 
Ms. Annemarie Fonseca, Deputy  Representative, UNICEF 
Dr. Castro Camarada, Representative, FAO 
Mr. Techeste Zergaber, Representative, WFP 
Mr. Edmund Motseki, Operations Officer, World Bank 
Mr. Ernest Fauster, Deputy Representative, UNDP 
Mr. Joe Feeney, UNDP 
Mr. Mads Lofvall, WFP 
 
NGO MEETING 
---------------------- 
 
Mrs. Marge Stitouris, CARE Lesotho. 
Mr. Thuso Green, Sechaba Consultants. 
Mr. Winstone Nkhoma, World Vision 
Mr. Seabata Motsamai, Lesotho Council of NGOs 
Ms. Mphonyane Mofokeng, Save the Children 
Ms. Lisa Brennan, Habitat for Humanity 
Ms. Keiso Matashane, Women and Law in Southern Africa. 
Kellogg Foundation - Sehoai Santho 
CARE Lesotho - Peete Lerotholi 
Mr. Tseliso Ramochela, Lesotho Federation of Democratic Unions. 
Mr. Macaefa Billy, Factory Workers' Union. 
Daniel Maraisane, Lesotho Clothing and Allied Workers' Union. 
Cpt. Sandra Welch, Salvation Army 
Ms. Stacey Dlamini, Coordinator, Salvation Army 
Mr. S.V. Montsi, Lesotho National Dairy Board 
 
PRIVATE SECTOR MEETING 
-------------------------------------------- 
 
Ms. Jennifer Chen, Textiles Exporters' Association. 
Mr. Thabo Makeka, Lesotho Employers' Association. 
Deputy Governor, Central Bank of Lesotho. 
Mr. Dave Allan, Standard Bank. 
Mr. Alubani Sibanda, Standard Bank 
Mr. Koena Phafane, Lesotho Chamber of Commerce and Industry. 
Mr. T. Thokoa, Lesotho Chamber of Commerce 
Mr. Dave Peterson,  Maluti Mountain Brewery. 
Mr. Chaka Ntsane, Vice Chairman TEMO Holdings (agribusiness) 
Mr. Khalikane, TEMO Holdings 
Mr. Joshua Nyoni, TEMO Holdings 
Mr. Phallang Mokhesi,  BEDCO (Basotho Economic Development 
Corporation) 
Mrs. Mathabo Klass,  LNDC (Lesotho National Development 
Corporation) 
Mrs. Felleng Makeka, LTDC (Lesotho Tourism Development 
Corporation) 
Mr. Adri Van der Veer, Telecom Lesotho 
Mr. Simon Mhaville, Lesotho Electricity Corporation. 
Mrs. Ntsoaki, Lesotho Unit Trust. 
 
MASERU 00000321  003 OF 003 
 
 
Mr. Brian McCarthy, Security Unlimited (and Employers 
Federation) 
Dr. Ramatlateng, Impact Mafeteng 
 
7. The MCC team did not have an opportunity to clear this cable. 
 
LOFTIS