Lesotho Times
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A welcome crackdown at LEC

THE reported uncovering of an alleged M81 million fraud scheme at the Lesotho Electricity Company should be a wake-up call not only for the power utility itself, but for every public institution in Lesotho. For years, Basotho have watched the Lesotho Electricity Company (LEC) stagger under persistent financial difficulties, poor service delivery, rising consumer frustration and endless allegations of corruption. At some point, the institution had become a national laughing stock — a state entity seemingly unable to explain its own financial haemorrhage.

Against that backdrop, acting Managing Director Tšeliso Mokela deserves recognition for taking the bold and necessary step of initiating investigations into the utility’s financial leakages. His administration’s decision to probe the company’s books and systems appears to have exposed what may turn out to be one of the biggest fraud scandals in the history of the utility.

If the allegations are proven in court, then this was not merely ordinary theft. It was an organised and sustained looting operation allegedly carried out over a decade by individuals entrusted with safeguarding public resources. The scheme reportedly exploited weaknesses in the transition from the old postpaid electricity system to the prepaid platform, allowing electricity to be loaded and sold without payment to the company. That such a racket could allegedly continue from 2015 to 2025 without detection points to catastrophic governance failures within the utility.

The scandal raises deeply troubling questions.

Where were the internal auditors all these years? Where were the supervisors? How did agents continue selling electricity while balances remained stagnant without anyone noticing? How did a supposedly obsolete postpaid system remain vulnerable to manipulation for such a long period? And perhaps most importantly, how many more public institutions are bleeding money through similar schemes hidden beneath layers of bureaucracy and negligence?

For too long, there has been a culture within some state-owned enterprises where financial losses are treated as routine and accountability is almost nonexistent. Whenever institutions run into financial trouble, the default response has often been to increase tariffs, seek government bailouts or blame economic conditions. Rarely has the spotlight been turned inward to examine whether corruption and inefficiency are the true causes of institutional collapse.

That is why Mr Mokela’s intervention matters.

Instead of accepting LEC’s financial struggles as normal, he reportedly asked the most important question any leader should ask: “Where is the money going?” That simple act of curiosity and accountability appears to have uncovered a massive hole through which millions of maloti may have disappeared over the years.

Basotho consumers have every right to feel angry. Many ordinary citizens struggle monthly to buy electricity tokens. Some households go without power because they cannot afford rising energy costs. Businesses complain about operational expenses linked to electricity. Yet while the public tightened its belt, some individuals allegedly treated the utility like a personal cash machine.

What makes the allegations even more painful is that the money lost belongs to the public. LEC is not a private company owned by a handful of shareholders. It is a national asset. Every maloti stolen from the utility ultimately affects service delivery, infrastructure maintenance and electricity affordability for ordinary Basotho.

The scandal also demonstrates why digitisation and technology alone are not enough to eliminate corruption. Many people assume that once systems become electronic, fraud automatically disappears. But corrupt individuals often adapt faster than institutions themselves. Without strong oversight, regular audits and ethical leadership, even sophisticated systems can be manipulated from within.

However, while applauding the current management for exposing the rot, this moment must not become another temporary anti-corruption spectacle that fades with time. Lesotho has seen many scandals emerge with dramatic headlines, only for investigations to stall, prosecutions to collapse or suspects to quietly disappear from public attention.

This case must be different.

The ongoing investigations should be allowed to proceed independently and without political interference. If more suspects are implicated, they must face the law regardless of their status or connections. Equally important, innocent individuals must not be unfairly condemned before the courts conclude their work. The principle of due process remains essential.

Beyond criminal accountability, LEC must now undertake serious institutional reforms. The utility should commission a comprehensive forensic audit covering not only electricity sales systems but procurement, revenue collection, contracts and operational controls. Weak internal controls that allegedly enabled the fraud for years must be permanently dismantled.

Parliament and relevant oversight bodies should also pay close attention. This scandal is not merely an LEC problem; it is a governance problem. It reflects broader weaknesses within public institutions where systems are often vulnerable, oversight is weak and corruption can flourish undetected for years.

At the same time, honest employees within LEC should not be demoralised by the scandal. Many dedicated workers continue serving the utility professionally under difficult conditions. In fact, exposing corruption ultimately protects hardworking staff whose reputations are often damaged by the misconduct of a few individuals.

Most importantly, the current developments should inspire a wider culture shift within public administration. Leaders who actively search for leakages and inefficiencies should be encouraged, not resisted. Far too often, whistleblowers and reform-minded managers face hostility from entrenched networks benefiting from corruption. Lesotho cannot afford such resistance anymore.

The country’s struggling economy demands institutions that are transparent, efficient and accountable. Every stolen maloti weakens national development efforts. Every corruption scandal undermines public trust. Every act of impunity discourages honest citizens.

For now, credit must go where it is due. Mr Mokela’s decision to confront the apparent rot at LEC is a step in the right direction. Whether this moment becomes a genuine turning point or merely another forgotten scandal will depend on what happens next.

 

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