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LEC buys M1.2m “used” cable from a cook

In Local News, News
June 18, 2025

Mohloai Mpesi

THE Lesotho Electricity Company (LEC) has once again stunned the nation after revelations that it procured four-core electricity cable worth M1.2 million from a South African catering company.

The Public Accounts Committee (PAC) was left in shock yesterday upon learning that LEC Acting Managing Director, Nathaniel Maphathe, authorised the procurement of the cable from HDM Catering and Projects, a company based in South Africa’s Free State province.

Mr Maphathe approved the transaction despite the refusal of suspended Head of Finance, Makabelo Matsoso, to endorse the payment.

Ironically, Mr Maphathe had claimed he was appointed to root out corruption after the LEC Board, under his leadership, suspended Managing Director Mohlomi Seitlheko and nine executive managers on 12 March 2025.

PAC Chairperson, Machabana Lemphane-Letsie, raised concerns that the cable might be second-hand or possibly stolen from South African utility giant, Eskom.

Ms Lemphane-Letsie, accompanied by Revolution for Prosperity (RFP) legislator for Matala Tšeliso Moroke, Democratic Congress (DC) MPs for Malimong and Mekaling, Lemphoi Makara and Thabiso Lekitla, respectively, as well as Basotho National Party (BNP) leader Machesetsa Mofomobe and Alliance for Democrats (AD) Member of Parliament Maboiketlo Maliehe, questioned the legitimacy of the supplier.

She said HDM Catering and Projects had failed to submit its certificate of incorporation when it was awarded the tender.

“In the document of LEC, HDM was given a tender without attaching its certificate of incorporation when it was given the job to supply the cables.

“We heard that this is a company from the Blue Gum Bush area. We have found the certificate of incorporation of the company, and it is called HDM Catering and Projects.

“We are fearful that you will end up buying property everywhere, even from people who do not have the capacity to sell. You might even find yourself buying from a person selling chips,” Ms Lemphane-Letsie said.

She expressed surprise that the nation paid M1.2 million to a catering company for the cable.

“LEC bought four-core cable in Blue Gum Bush. There is nothing you could expect from that company except a lawsuit from Eskom that the cable belongs to them.

“We paid M1.2 million to a catering company and it is likely that it is a second-hand or a stolen cable and transported it with M70 000. Finance officer, give us documents showing that you paid and that you received that cable.

“Head Finance, did you pay for this catering company a cable? Did you find it correct to pay that amount?” she asked.

Ms Matsoso explained that she refused to pay the company because the Procurement Manager failed to convince her why they had to buy the cable from that company.

She said she questioned the trading documents and physical address of the company.

“I never paid HDM while I was still Head of Finance at LEC. That request came that we should buy at HDM, but we disagreed with the procurement manager. I left it at that stage before I was suspended.

“I said I was uncomfortable buying from that supplier. The problem I had was the trading documents of the suppliers attached and their physical address.

“I wanted the procurement manager to convince me how they knew about them. Yes, we have a problem in the market about four cores. In LEC database, isn’t there anyone from people who have been supplying us with four cores, can’t we ask them where they bought it and go there ourselves?

“Since I could not be convinced that he exhausted all the suppliers, I did not approve of it,” Ms Matsoso said.

Ms Lemphane-Letsie read a comment made by Ms Matsoso relating to the tender, where she advised that it should be sourced from a reputable manufacturer.

“I think you gave us a fair answer,” Ms Lemphane-Letsie said, directing her attention to Mr Maphathe, whom she asked about his motive to authorise it.

“Mr MD (Maphathe), I am coming to you because you signed this document when it was so obvious that the Head of Finance refused to sign this paper. Once she got suspended, you went ahead with this procurement. Please explain what convinced you with all these notes that she queried this procurement.

“…she even noted that ‘please take the approach to source directly from manufacturers as directed by TAC (Tender Awarding Committee) until further notice’.

“A note of 11th of September 2024, where Head Finance refused to sign it. After being suspended in March, you go ahead with procurement that she refused,” she said.

Mr Maphathe responded that he was not aware of the notes that Ms Matsoso had written.

“The notes that you have read did not come to my attention. Maybe procurement should answer about their motivation on this,” Mr Maphathe said.

But an angry Ms Lemphane-Letsie showed her disappointment with Mr Maphathe purchasing a cable from a catering company.

“No MD, we are talking about procurement who have already put you inside issues that you should go and buy cable of LEC that would wire for Basotho from a cook, despite TAC saying you should go and source from the manufacturer, now you have sourced from a caterer. Mr (Mpeo) Mputsoe (acting LEC Procurement Manager) lied to this parliament, saying the manufacturer did not have a cable.

“You (Maphathe) signed here despite the fact that Head of Finance refused to sign, and Lintle Thamae (Acting Head of Finance). You have let down this board that entrusted you to be the MD,” she said.

Mr Maphathe tried to explain that there was an invitation for tender applications and after the tender process, the company won the tender.

“There was another correspondence after Head of Finance queried these issues. In November there was an invitation for all companies that have been supplying us to submit their applications, and this company came out victorious,” he said.

Ms Lemphane-Letsie asked, “Are you saying this catering company applied for a tender — the HDM Catering and Projects? I am so disappointed in you.”

Dr Moroke noted that Mr Maphathe has been trying to frustrate the PAC process because he knew his rot would be unveiled.

“We could not understand why Mr Maphathe was not helping us to work quickly. It is because he is in every issue that has been done unlawfully. We struggled because he did not want us to find out that he is a part of everything illegal.

“It is disappointing because you are an old person who was called by the board to help the LEC. You have not even finished three months, but you are part of things you were supposed to come and fix. This shows clearly that Mr Maphathe is part of these illegal activities,” Dr Moroke said.

The board chairman, Thabo Khasipe, said he was aware of the issues happening in the LEC and the board would act decisively.

“We are listening to the problems that are being tabled. What I have learned inside LEC since we arrived is that there are no internal control systems. LEC problems are deep.

“The board will take action going forward, but LEC has deep problems that need to be addressed,” he said.

He further stated that the suspension of the Executive Management has been extended by a month because the Auditor-General, who is conducting a forensic audit, said there is information she needs to extract from Mr Maphathe’s office. Therefore, his term must be extended by a month.

“Yes, it is true that the board suspended the Executive Management for three months and made a decision that Mr Maphathe should act, and I became the chairman.

“Three months lapsed on 11 June 2025, and we received a request from the Auditor-General that the forensic audit she is still doing includes the suspension of the Managing Director.

“She is asking that we extend his contract by a month to complete the job so that she can compile enough evidence for her report.

“This means she asked us to extend Mr Maphathe’s contract until the 11th of July. Therefore, the board wrote to the suspended Executive Management extending their suspension until 11 July 2025,” Mr Khasipe said.

/ Published posts: 16035

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