…as he refuses to provide key documents to the committee
Moroke Sekoboto
THE Public Accounts Committee (PAC) has ordered the Revolution for Prosperity (RFP) Chairperson, Teboho Kobeli, to pay M6.5 million owed by his company, Duty Free Sourcing, to the Lesotho National Development Corporation (LNDC).
Speaking at yesterday’s sitting, PAC Chairperson, ‘Machabana Lemphane-Letsie, explained that Duty Free Sourcing was awarded a M10 million loan in November 2023 through a cabinet decision.
The company initially failed to meet LNDC requirements, as it was wholly owned by a Sri Lankan national.
Ms Lemphane-Letsie said that when LNDC declined the loan application, the cabinet intervened and approved it. She said the loan contract required Duty Free Sourcing to settle the loan within 12 months, but the company only paid M3.5 million. The loan repayment was later extended to 1 January 2025, yet the loan remains outstanding to date.
Mr Kobeli became a majority shareholder in Duty Free Sourcing after purchasing 1000 shares on 6 January 2025, according to ministry of trade website.
Mr Kobeli refused to provide proof of payment for the acquisition of Duty Free Sourcing and a tax certificate, raising the PAC’s concerns that he intended to use his political position to avoid repayment.
For breaching the loan agreement and refusing to provide the required documents, the committee ordered Mr Kobeli to fully settle the loan by 3 November 2025, when Parliament reopens. The committee warned that failure to comply would lead to escalation of the matter.
“We received a letter from LNDC about Duty Free Sourcing’s debt. The first report said Duty Free Sourcing applied for M10 million but failed to meet LNDC requirements, which required Basotho representation in the shareholding to support local companies,” Ms Lemphane-Letsie said.
“The company at that time did not meet that requirement. The Minister of Trade, Industry and Business Development, Mokhethi Shelile, asked the cabinet to remove the requirement to accommodate Duty Free Sourcing, which resulted in the loan being illegally approved through a cabinet decision. The transaction was irregular or illegal.”
Around the time when the loan settlement deadline was due, Mr Kobeli acquired the company and became the major shareholder, a move she and other committee members — including Moeketsi Motšoane, Thabiso Lekitla, Lephoi Makara, and Montoeli Masoetsa — implied was an attempt to use his political power as RFP Chairperson to avoid full repayment of the loan to the LNDC.
Ms Lemphane-Letsie said Mr Kobeli, soon after becoming a major shareholder, wrote a harsh-toned letter to LNDC. Mr Masoetsa read out the letter, which Mr Kobeli wrote to LNDC Interim Chief Executive Officer Molise Ramaili, describing it as intimidating.
Mr Kobeli wrote: “This is a firm admission of debt in the amount of M6.5 million as stated in your letter of demand. It is true that in terms of the loan agreement, we had undertaken to resettle the payment on or before 01 January 2025, but for the reason communicated to your office in our email dated 29 January 2025, we could not meet the said deadline. While we unconditionally admit that our loan is in arrears, we can also ascertain that it is not in vain. The advance from your office has made a huge positive impact on many lives.
“Our firm has currently created 2000 permanent jobs for the destitute and secured enough orders to create more than 4000 jobs in the next 18 months. I therefore would advise that you reconsider your decision to refer our debt to your legal office for collection, and also to engage a mediator, because from our point of view, there is no dispute that we owe the corporation.
“Appointment of a mediator and referral of this matter to the legal office will not change our current financial position, but allowing us a few more months will surely ensure that repayment of the outstanding balance is realised. We project that we will have settled this balance within six months from the date of this letter.”
Responding to the committee’s questions, Mr Kobeli admitted that he is a major shareholder of Duty Free Sourcing but refused to show proof of payment and a tax certificate, saying they are confidential despite owing the public entity. He acknowledged the debt and promised to settle it but failed to provide a clear payment plan. Mr Kobeli also highlighted the company’s job creation efforts, claiming a positive impact on economic growth.
“We owe LNDC M6.5 million, and it is normal that when you are in business, there are debts. It is normal to communicate in different ways, including by writing, calling, and meeting physically. We intend to fully settle the debt, and we are preparing to pay. I am not in a position to say when we will make the payment. My accountants are working on the payment plan.”
