Mohloai Mpesi
MINISTER of Public Works and Transport, Matjato Moteane, has been accused of being part of the scheme which committed Sekhametsi Investment Consortium (SMIC) to a massive M145 million investment into Prime Minister Sam Matekane’s company without the approval of the SMIC board.
A leaked forensic investigation report by Forvis Mazars Forensic Services (Pty) Ltd (Forvis Mazars), commissioned by SMIC in August last year, details how Mr Moteane—who left the SMIC board on 27 November 2024—together with three other board members, Leboela Lebete (then SMIC CEO), Relebohile Sefako, and Advocate Limpho Maema, pushed through the M145 million investment into Mr Matekane’s Verve Dynamics Incorporated (VDI).
The forensic report paints a stark picture of questionable governance, unilateral decision-making, and financial mismanagement at SMIC under Mr Moteane and his associates, raising serious concerns about the board’s accountability and oversight.
The report describes the VDI transaction as “by far, the largest and most consequential decision taken by SMIC during the period under review,” noting that commitments were made before the full board had deliberated, and without confirming SMIC’s capacity to sustain such financial exposure.
“Four board members (Mr Lebete, Mr Sefako, Mr Moteane, and Adv Maema) presented an offer to Verve Dynamics Incorporated prior to consultation with the entire board, committing to financial undertakings without a confirmed and approved source of funding.”
It explicitly states that SMIC was not financially positioned to support the deal.
In fact, it seems from the report that Sekhametsi took out a loan to pay the first M15 million tranche of the M145 million investment from a commercial bank.
“The four board members did not act within the best interest of SMIC as SMIC was not in a financial position to endorse the Verve Dynamics deal in its entirety (M145 million).”
According to Forvis Mazars Director Keeran Madhav, SMIC requested the forensic audit to examine the company’s governance.
The M145 million represented SMIC’s full financial commitment to VDI under a conditional offer made in November 2021. The investment was intended to position VDI as a regional player in the pharmaceutical and cannabis-derived medicines sector.
The funds were not payable upfront. Instead, they were to be released in tranches, with the first M15 million paid in September 2022, while subsequent tranches were conditional upon meeting specific milestones. The forensic report, however, highlights governance failures that undermined this structure.
Additionally, the audit revealed irregularities in payments to other SMIC service providers involving another M14.7 million. Nine providers invoiced amounts exceeding their contracts, totalling nearly M14.7 million. Mr Moteane, Moroa Property Investment, and Mr Lebete were implicated in endorsing these excess payments.
“When comparing the contract values as stated in the PROCSA, we noted that seven of the nine service providers invoiced more than their contractual amounts which cumulatively amount to 14,692,127.36. No contract variation or addendums were provided to substantiate the additional payments.”
The forensic team also reported being denied access to Nedbank Lesotho bank statements, preventing verification of whether a M15 million loan was received by SMIC.
The loan was to be paid to VDI as the first batch of the M145 million investment.
“Mr Lebete provided us with a letter from Nedbank Lesotho, dated 13 July 2022, which serves as confirmation that SMIC’s application for a M15 million credit to fund the acquisition of shares from VDI, has been approved at stage 1 and is currently awaiting final assessment (stage 2 approval).
“We were not provided with the SMIC Nedbank Lesotho bank statements to perform an independent analysis of whether the M15 million loan from Nedbank Lesotho was received by SMIC.”
The report further exposes unilateral actions by Messrs Moteane and Lebete, including the unauthorized pledge of M180,000 to the Lesotho National Development Corporation (LNDC).
“Mr Moteane and Mr Lebete acted unilaterally without due approval from the SMIC Board by processing the pledge of M180,000 to LNDC. The pledge was not accounted for in SMIC’s financial records. By approving this payment, Mr Moteane and Mr Lebete did not act in the best interests of the SMIC Board or shareholders.”
Similarly, an unauthorized trip to Cape Town cost SMIC M17,750.
“We were not provided with any evidence that the SMIC Board approved a trip to Cape Town or that five Board members were delegated to represent SMIC to VDI’s sister company. The delegation incurred M17,750. We find that the Board members who travelled did not act in the best interest of the SMIC Board and shareholders by incurring unauthorised expenditure.”
The forensic audit also reviewed SMIC’s investment in Afri Expo Textile (Pty) Ltd, procurement processes, recruitment, dividend payments, and construction/refurbishment projects including Sekhametsi Place and Vodacom Park Building. Investigators reported inadequate information.
“We were provided with insufficient information in relation to the refurbishment of Sekhametsi Place and construction of the Vodacom Park Building. Key documents, including tender specifications, evaluation and appointment records, service level agreements, building plans and financial records, were incomplete or not provided.”
In addition, documents related to the appointment of the Project Manager, Mvuso Properties/Moroa Property Investment, were missing, leaving investigators unable to determine why contractors invoiced more than contractually agreed.
When contacted, Mr Lebete defended the board’s actions.
“We were board members, and as such, we had authority. The issue is that shareholders delegate to the board, and within the board, there were signatories, and I was one of them… According to my knowledge, all these issues were approved by the board. The report is clear that it relied on hearsays. They provided information that was told by people who had their own interests and agendas.”
Mr Moteane could not be reached for comment as his mobile phone was unreachable.
SMIC, founded in 1999 with just 30 members, made its first investment by acquiring a 12 percent stake in Vodacom Lesotho soon after SMIC’s founding. Over the years, its shareholder base has grown to 500, encompassing a diverse mix of farmers, informal traders, pensioners, corporate managers, students, religious organisations, investment clubs, burial societies, as well as women and youth groups.
At inception, SMIC shares were valued at M34 each, but these have since appreciated to between M8500 and M9000 a share to date, suggesting the investment holding company has done exceedingly well.
SMIC shareholders are currently locked in a bitter legal battle over the implementation and release of this audit report, which has since been leaked to the Lesotho Times. The matter is currently pending before the Commercial Division of the High Court.
