Mohloai Mpesi
THE Office of the Auditor-General (OAG) has spent M12 million on a forensic audit into financial mismanagement, procurement irregularities and other alleged wrongdoing at the Lesotho Electricity Company (LEC).
The expenditure came to light when the OAG appeared before the Economic and Development Cluster this week to review its 2026/27 budget allocation.
Committee member, Montoeli Masoetsa, criticised the OAG’s M30 million allocation for the 2026/27 financial year, saying it was inadequate given the office’s workload, including costly forensic audits.
“On the annexure, look at LEC with its forensic audit, M12,045,897.20 has been spent on it…” Mr Masoetsa said.
“The PS letter says, ‘please note that the approved budget for the Office of the Auditor-General is M30 million’. But they have used M52 million. It is not because of their own volition. LEC audit has squandered M12 million on its own.
“So, when you look at these issues, it indicates that the budget that has been allocated for this office is not enough. Taking into account that this office does not have enough staff and a lot of other things, there is a need for an intervention here,” he said.
The forensic audit, which commenced in March last year, has since been completed and submitted to the relevant ministry.
Deputy Principal Secretary in the Ministry of Finance and Development Planning, Malereko Molefi, explained to the Committee that the LEC forensic audit had been financed by the ministry as a once-off activity.
“In a situation where there was a once-off financing of an activity, it does not become incorporated in the budget.
“There are spendings that seem to be large on their side. For example, this (LEC) audit was funded by the ministry as it came as an additional activity. Hence, you cannot see it added to their budget for the financial year.
“It is not only that one, but there is also another one where they have made a request where they will get funding for that audit. So, it makes it look like their spending is big, but there were once-off activities that were funded from the ministry,” Ms Molefi said.
Background
The LEC board suspended the company’s 10-member executive management team last year to pave the way for investigations into alleged financial irregularities.
Auditor-General, Mathabo Makenete, was engaged to audit the utility to 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 position as chairperson. The board is now chaired by another member, Thabo Khasipe. Mr Maphathe has since been replaced by current acting Managing Director, Tšeliso ‘Mokela.
The government has since ordered disciplinary proceedings against the 10 executives, claiming they caused the utility to lose more than M1 billion over the past three years through alleged mismanagement.
Principal Secretary in the Ministry of Energy and Mining, Tankiso Phapano, wrote to LEC Board Chairperson Thabo Khasipe directing the board to institute disciplinary proceedings against the suspended executives.
In the letter, dated 15 May 2026 and seen by this publication, Mr Phapano said the losses were caused by outdated policies, weak internal controls and widespread governance failures.
LEC has previously appeared before the Public Accounts Committee (PAC) over allegations of financial mismanagement 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 subsequently sought 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 forensic audit was ordered by former Energy Minister Professor Nqosa Mahao, who raised concerns over alleged financial mismanagement by the LEC 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.
