…it has not started six weeks after suspension of executives
Mathatisi Sebusi
The Lesotho Electricity Company (LEC) has yet to appoint an auditor to investigate allegations of financial impropriety against 10 suspended executive officers, nearly seven weeks after their suspension.
The audit, which was supposed to justify the March 2025 suspension of the executives, including Managing Director Mohlomi Seitlheko, was expected to last three months.
However, halfway into the suspension period, no progress has been made. This has prompted speculation that the suspensions may have been a prelude to dismissals rather than a genuine effort to probe wrongdoing.
With no auditor appointed to date, it is increasingly likely that the investigation will extend well beyond the original timeline, placing further strain on LEC’s already dire financial position.
An external audit report submitted to the Ministry of Energy in January 2025 revealed that LEC had depleted its M145.8 million cash reserves.
In addition, LEC had previously struggled to settle a staggering M700 million debt to Eskom and Electricidade de Moçambique (EDM) for electricity imports and had sought a government bailout of M328 million to keep the national alight.
The delayed audit is expected to worsen LEC’s financial woes. Beyond the funds earmarked for hiring an auditor, the utility company is currently paying 10 acting executives more than their usual salaries and benefits. According to LEC policy, acting personnel are entitled to an additional 10 percent of the salaries of the executives they are replacing.
Meanwhile, the 10 suspended executives continue to receive their full salaries and benefits.
The board announced the suspension of the 10-member executive team on 12 March 2025. Apart from MD Seitlheko, the other suspended officials are: Corporate Secretary Attorney Khotso Nthontho, Head of Corporate Services Moipone Mashale, Head of Strategy and Growth Limpho Mokhesi, Head of Information Technology Sakhele Mapetja, Head of Finance ‘Makabelo Matsoso, 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.
A memo released at the time of their suspension stated that a forensic audit would be conducted to address the concerns of impropriety that gave rise to the decision, and emphasized the board’s commitment to transparency, accountability, and good corporate governance.
Then board chairperson, Nathaniel Maphathe, was appointed interim managing director following the suspensions. As a result, he vacated the chairperson role, which has now been filled by board member, Thabo Khasipe.
Speaking to the Lesotho Times, Mr Maphathe confirmed that investigations have not yet commenced. He said the company is still in the process of procuring an investigator.
While he declined to disclose the specific cost of the exercise, Mr Maphathe acknowledged that it would be expensive, but necessary. He blamed government inaction for the situation.
“Even though I cannot disclose the exact amount allocated for this process, it is a very expensive exercise,” said Mr Maphathe.
“This should serve as a lesson to the government not to let issues deteriorate to this extent. LEC had to make a tough choice – either spend a significant amount of money to correct what is wrong within the entity or allow things to continue deteriorating.”
However, sources close to the matter allege that the board is using the suspensions strategically to push out the executive team.
One source told the Lesotho Times that the delays in appointing an auditor suggest that the suspensions are meant to be permanent. According to the source, the executives were not only being accused of underperformance but were also perceived as politically connected individuals hired through the influence of the previous regime, safe for Mr Seitlheko who was appointed last year by the current Sam Matekane-led government.
“The executives should expect their suspensions to be extended until LEC finalises its plan to replace them with new candidates,” the source said.
“This happens while LEC is spending even more, paying both the suspended executives and the acting staff. This is a company that was complaining about financial distress just a month ago.”
The source also revealed that the LEC board has not yet issued any advertisement or call for expressions of interest to recruit an auditor for the forensic investigation. Even if the process were to begin now, the source added, the investigation would likely not be completed within the suspension period.
One of the suspended executives, who spoke to the Lesotho Times on condition of anonymity for fear of reprisal, said it does not appear that the board is serious about conducting the investigation anytime soon.
“Whenever a person is suspended, people already conclude that he or she is guilty. We have a cloud hanging over our heads suggesting we committed fraud or some other corruption-related crime. We need this exercise completed so our names can be cleared.
“I am not aware of any effort to initiate the investigation, as there has not even been a post (advertisement) seeking an auditor, and I am sure you can confirm there has been no advert in your paper from LEC in that regard,” the source said.
While the source said it could not confirm whether the suspension was being used as a tactic to eventually dismiss them, the source warned that such a move would be unfounded and unfair.
“LEC cannot charge or fire anyone without facts. Only a proper investigation can provide those facts, which will then give birth to charges to be used in a disciplinary process.”
In response to the allegations, Mr Maphathe strongly denied that the board was using the suspensions as a strategy to remove the executives permanently.
“If that was the case, we would have taken a different route, perhaps subjecting them to a disciplinary hearing.
“Currently, we only have allegations, which will be verified through the investigation to be conducted. The investigator will compile a report and submit it to the board. Its findings will guide the way forward,” Mr Maphathe said.
He stressed that the suspensions should not be seen as judgments or assumptions of guilt, but rather as a necessary measure to ensure the investigation proceeds without interference.
The pending audit was ordered by former Energy Minister Professor Nqosa Mahao, who raised concerns about the mismanagement of funds by LEC’s executive team under the previous board, which he dismissed in October 2024.
Before Prof Mahao was fired by Mr Matekane in November 2024, he had already dissolved the previous board on 10 October over its approval of staff bonuses totalling around M6 million—despite LEC’s dire financial state.
The dismissed board members were: Professor Molibeli Taele (chairperson), Mathapelo Ramakatane, Mosiea Mapota, Mokhoenene Lehohla, Mokhethi Seithleko, Pesha Shale, Seretse Mohlouoa, Masophia Lesaoana, Advocate Rapapa Sepiriti, and Teboho Shelile.
Mr Seitlheko and Mr Nthontho remained on the board as they were LEC employees representing management and not political appointees.
Prof Mahao argued that the board’s approval of bonuses was reckless, especially given that LEC owed M700 million to Eskom and EDM.
He also pointed out that the bonuses were awarded while the company was seeking a M328 million bailout from the government to fund imports during the six-month shutdown of the ‘Muela Hydropower Station, which provides LEC with 72MW of power. The shutdown, which began on 1 October 2024, is expected to end soon.
The board was also criticised for allowing key LEC projects to be transferred back to the Ministry of Energy.
Prof Mahao replaced the board with a new one chaired by Seaja Ntšekhe and including members Nati Maphate, Thabo Khasipe, Lebohang Ramaisa, Lerato Mphaka, Batalatsang Kanetsi, Moholisa Fako, and Rethabile Sakoane.
However, Acting Minister of Energy Mohlomi Moleko, who succeeded Mahao, fired Mr Ntšekhe in December, allegedly over a Facebook post in which he suggested that Mahao had been dismissed for fighting corruption. Ntšekhe was subsequently replaced by Mr Maphathe.
