Moorosi Tsiane
THE Lesotho Highlands Water Commission (LHWC) has asked Lesotho Highlands Development Authority (LHDA) board chairperson, Lehlomela Stephen Phakisi, to resign from his cushy post for allegedly violating the Authority’s conflict of interest policy.
Mr Phakisi has in turn launched an urgent High Court petition to forestall his employer and keep his job.
His court move follows a letter from the LHWC last Friday, requesting that he voluntarily steps down due to his failure to disclose his interests in companies doing business with the LHDA.
According to the letter, Mr Phakisi failed to disclose his interests in Mafube Engineering Laboratory and Mafube Property Development when declaring his business affiliations upon joining the LHDA board in 2018. He assumed the board chairmanship later in 2023.
On 4 February 2025, he was asked to explain his relationship with these businesses. However, after reviewing his submissions, the LHWC concluded that a conflict of interest existed.
“The Commission has carefully considered your representations concerning the identified conflict of interest. This assessment was conducted in strict adherence to the LHDA Conflict of Interest Policy and relevant legal framework. Following a thorough review of all documentation and deliberations, the Commission has found no basis to alter its initial determination regarding the existence of a conflict of interest.
“Given this conclusion, the Commission respectfully invites you to consider voluntarily stepping down from your roles as both a Director and the Chairperson of the LHDA Board, with immediate effect. We kindly request that you resign within the next 48 hours to facilitate a smooth and expeditious resolution of this matter,” reads the letter from the LHWC’s Acting Secretary, Joy Norman.
In response, Mr Phakisi rushed to court on Monday, seeking an order to interdict the LHWC from interfering with his position. He also wants the court to declare the LHWC’s determination that he is conflicted and must resign as invalid, null, and void.
LHWC, the LHDA Board, the Conflict of Interest Committee (CoI LHDA), and the LHDA are cited as the first to fourth respondents in the matter.
Appointed to the LHDA Board of Directors in April 2018, Mr Phakisi was named board chairperson in 2023. He argues that before his appointment, he was required to declare any conflicts of interest and uphold his fiduciary duties.
“I was advised to disclose only businesses that were operational and had business relations with the LHDA directly or through affiliation. The LHWC subsequently wrote to me on 28 February 2018, advising that, to eliminate any potential or perceived conflict of interest, I should resign from Mafube Consulting, a private company where I was a director and shareholder.
“I was further asked to clarify my business relationship with Katse Fish Farms and explain how I would manage perceptions that an LHDA board director was running a company operating in an LHDA-regulated environment. Following this engagement, I resigned from the companies that were active and operational at the time. However, I did not resign from those classified as dormant, as they were non-operational,” argues Mr Phakisi through his lawyer, Advocate Sello Tšabeha.
Mr Phakisi also contends that when he joined the LHDA in 2018, there had been no Conflict of Interest Policy in place. The policy was only developed later that year, with input from the board in which he served.
“I must take the Honourable Court into my confidence and disclose that, upon joining the LHDA in 2018, there was no Conflict of Interest Policy in place. The first policy was developed that same year by the board in which I was a member. However, it was merely administrative in nature, intended only for LHDA staff and consultants.
“Despite policy developments in 2022, its scope did not explicitly extend to board members. This prompted me to seek clarification from the LHDA’s Legal Services Manager, Thenjiswa Matshikiza, via email on 6 June 2024. I disclosed my interests in several companies, including dormant ones, and indicated that I would declare them if they became operational. Matshikiza acknowledged my email and stated she would seek guidance from the LHWC Secretary.”
According to Mr Phakisi, Ms Norman only responded to his request in January 2025, nearly seven months later.
“The Acting Commission Secretary, Joy O. K. Norman, only responded on 25 January 2025. It is clear from the Commission’s response that there was confusion regarding the proper authority to handle board members’ conflicts of interest. Initially, the Commission believed the matter fell under the jurisdiction of the board itself.
“However, the board declined to handle it and referred it back to the Commission.”
Following its investigations, the LHWC discovered that Mr Phakisi was a director and shareholder in Mafube Consulting Engineers from 6 August 1997 to 5 March 2018. He has also been a shareholder and director in Mafube Engineering Laboratory since 6 April 2016, alongside associates from Mafube Consulting Engineers. Additionally, he is a director in Mafube Property Development with the same business associates.
The LHWC concluded that Mr Phakisi omitted Mafube Engineering Laboratory and Mafube Property Development from his 2018 declarations.
“The absence of these companies in the declaration is concerning. Section 3 of the Conflict of Interest Policy broadly defines conflicts of interest to include affiliations such as those discussed above. The omission may also contravene Section 5 of the policy, which prohibits deliberate non-disclosure or undue influence over LHDA matters,” the LHWC said in its letter.
Mr Phakisi argues that the LHWC mishandled the matter by failing to provide proper guidance on the declaration process and instead subjecting him to an investigation.
“The Commission ignored the fact that my inquiry was for guidance on how to make declarations properly. Additionally, both the board and the Legal Affairs Manager understood my concerns that the policy did not apply to board members, hence the need for clarification. Instead of providing the necessary guidance, the Commission investigated me and only issued its findings seven months later, without giving me an opportunity to be heard before or immediately after the investigation.”
He contends that the LHWC acted unlawfully and wants the court to set aside its decisions.
“I submit that the Commission acted unlawfully, and any decisions it has reached should be set aside. The companies I allegedly failed to declare are dormant and have never conducted business operations. I therefore dispute any claim of a real or potential conflict of interest.”
He further argues that the LHWC had already reached its determination before inviting him to make representations.
“The preamble to the policy is clear that it applies only to LHDA staff, LHWC, and consultants in commercial or related matters. Even if the policy applied to the board, Clause 5 states that any failure to disclose a conflict of interest or undue influence in decision-making would be subject to disciplinary measures applicable to the person’s position. There is no disciplinary measure in place that authorizes the Commission to demand my resignation.”
The LHWC is yet to file its response.
The LHWC is a bi-national body overseeing the Lesotho Highlands Water Project (LHWP) on behalf of the governments of Lesotho and South Africa. It ensures project accountability, advises both governments, and serves as the main channel for government inputs. LHWC also monitors the LHDA and Trans-Caledon Tunnel Authority (TCTA), ensuring they meet agreed milestones and performance indicators.
The LHWP is a multi-phase infrastructure project involving the construction of dams in Lesotho to supply water to South Africa while generating hydropower for Lesotho. The LHDA is responsible for implementing the project within Lesotho, reporting to its Board of Directors. Meanwhile, the TCTA, a South African state-owned entity, is responsible for financing and constructing LHWP infrastructure.
