In 1997, the ruling BCP

In 1997, the ruling BCP split over leadership disputes. Prime Minister Ntsu Mokhehle formed a new party, the Lesotho Congress for Democracy (LCD), and was followed by a majority of Members of Parliament, which enabled him to form a new government. Pakalitha Mosisili succeeded Mokhehle as party leader and the LCD won the general elections in 1998. Although the elections were pronounced free and fair by local and international observers and a subsequent special commission appointed by SADC, the opposition political parties rejected the results.

Opposition protests in the country intensified, culminating in a peaceful demonstration outside the royal palace in August 1998. Exact details of what followed are greatly disputed, both in Lesotho and South Africa. While the Botswana Defence Force troops were welcomed, tensions with South African National Defence Force troops were high, resulting in fighting. Incidences of sporadic rioting intensified when South African troops hoisted a South African flag over the Royal Palace. By the time the SADC forces withdrew in May 1999, much of Maseru lay in ruins, and the southern provincial capital towns of Mafeteng and Mohale's Hoek had seen the loss of over a third of their commercial real estate. A number of South Africans and Basotho also died in the fighting.

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