Mohloai Mpesi
THE Lesotho Electricity Company (LEC) has spent about M12 million paying salaries to its suspended executives over the past 11 months, the Lesotho Times has learnt.
The figure excludes acting allowances paid to staff members who have been holding fort during the suspensions.
The LEC board suspended the company’s 10-member executive management team 11 months ago to pave the way for investigations into alleged financial irregularities.
Auditor-General Mathabo Makenete was engaged to audit the utility so the board could establish whether there had been any wrongdoing by the executives.
However, two executives; Corporate Secretary Attorney Khotso Nthontho and Head of Finance ‘Makabelo Matsoso, resigned last year while still serving their suspensions.
Those still under suspension are Managing Director Mohlomi Seitlheko, Head of Corporate Services Moipone Mashale, Head of Strategy and Growth Limpho Mokhesi, Head of Information Technology Sakhele Mapetja, Head of Customer Experience Lebohang Mohasoa, Head of Legal, Risk and Compliance Selebalo Ntepe, Head of Internal Audit Thato Matsoso, and Head of Operations Serolo Tikoe.
At the time of the suspensions, then board chairperson Nathaniel Maphathe was appointed interim managing director, relinquishing his role as chairperson. The board is now chaired by another board member, Thabo Khasipe.
LEC has previously hogged headlines after appearing before the Public Accounts Committee (PAC) over allegations of mismanagement of funds and unlawful procurement practices. The utility was summoned following accusations of widespread financial irregularities, including management’s failure to provide Ms Makenete with supporting documents during the March 2023 audit. The Auditor-General was subsequently forced to seek the intervention of the PAC.
The Auditor-General’s 2024 report revealed that the parastatal had failed to account for M568 million, heightening concerns and prompting calls for a forensic audit, which has since been completed.
The 2024 forensic audit was ordered by former Energy Minister Professor Nqosa Mahao, who raised alarm over alleged mismanagement of funds by the LEC’s executive team under the previous board, which he dissolved in October 2024. Before his dismissal by Prime Minister Sam Matekane in November 2024, Prof Mahao had also dissolved the board over its approval of staff bonuses totalling about M6 million, despite the company’s precarious financial position.
In an opinion article published by the Lesotho Times in June last year titled “The Truth Behind the Noise: Setting the Record Straight on the LEC Board”, Mr Khasipe painted a grim picture of the company’s state when the current board assumed office.
“When the new Board was inducted between November and December 2024, what we found was not a company in distress, but one in the intensive care unit,” Mr Khasipe wrote.
“If LEC were a patient, we would say it is critically ill, bleeding cash, and barely conscious. The internal control systems are non-existent. Policies such as the IT framework have not been reviewed since 2005 — and that is not a typo.
“The risk register and internal audit reports indicate risk exposures in IT systems that I could not, without being irresponsible, expose publicly. The ethical climate is toxic, riddled with evidence of fraud, dysfunction and generally low staff morale,” he added.
Mr Khasipe further stated that when the board took office, it was approached by a “frustrated Auditor-General” after management repeatedly failed to supply records or attend scheduled meetings, including a meeting of the board’s Audit Committee in December 2024.
A source close to the matter told the Lesotho Times that the Auditor-General’s latest forensic report has been completed, but that the suspended executives have not yet been formally briefed on its findings.
“Yes, the audit has been completed, but it has not been made formal. The suspended managers have not received the report or any feedback on its contents,” the source said.
According to the source, allegations of corruption, fraud and intent to defraud were not substantiated by the forensic audit.
“What I heard is that fraud or intention to defraud was not found. What was identified relates to policy issues, although I do not have the full details,” the source said.
The source further claimed that about M12.9 million has been paid to the suspended executives over the 11-month period.
“If you take roughly between M140 000 and M200 000 per person, multiply that by eight people over 11 months, including benefits, you arrive at that figure,” the source said.
Contacted for comment, Mr Maphathe, who has since returned to the board, confirmed that the board was briefed on the report last week but said members had not yet received the full document.
“We have not received the report itself. We were only given highlights from its presentation,” he said.
“I am not in a position to comment further because we have not seen the detailed report. We are still far from that stage.”
Meanwhile, Acting Managing Director Tšeliso ‘Mokela distanced himself from the matter, saying he was unaware of the forensic report or the payments to suspended executives.
“I have not seen the report and I don’t know what you are talking about. This is the first time I am hearing about it,” he said.
“I am also not aware that such amounts were paid or that they have been suspended for 11 months. Even if they were suspended, it was not by me. You should ask the relevant people who made those decisions.”
