Lesotho Flour Mills contract terminated
MASERU-THE government will not renew Seaboard Overseas’s management contract to manage the Lesotho Flour Mills.
Seaboard has held the management contract, due to end this December, since it bought 50 percent of the milling company 20 years ago.
The government has held the other 50 percent but left the operations to the American company in an agreement that was meant to improve the company’s performance.
Yet for the past two decades Lesotho Flour Mills’ performance has been far less than stellar and dividends have not been forthcoming.
Instead, Seaboard has received more than M50 million in management contract fees while the company continued to underperform.