…as PAC appears to be playing to the gallery
Mohloai Mpesi
IN a bizarre twist to the Lesotho Electricity Company (LEC) procurement controversy, fresh evidence suggests that HDM Catering and Projects, a company said to be non-existent, is in fact a legitimate business entity.
LEC came under thorough scrutiny by the Public Accounts Committee (PAC) over a procurement deal in which it bought four-core cables worth M1.2 million from HDM Catering and Projects.
PAC alleged that the company did not exist.
Chair of the National Assembly Portfolio Committee Chairs, Mokhothu Makhalanyane, last week claimed before the PAC that parliamentary intelligence had confirmed the company’s non-existence, stating that a team had visited the address provided and found nothing.
However, his information contradicts findings from an investigation conducted by this publication.
A source within LEC, who wants to remain anonymous, told the Lesotho Times this week that the company in question does indeed exist.
According to official documentation seen by this publication, HDM Catering and Projects is a registered company that provides catering services but also supplies electrical materials, mining equipment, construction services, mechanical and civil works.
The company appears in the South African Central Supplier Database (CSD) and is listed as being based in Harrismith, Free State.
Furthermore, this publication also verified HDMI’s valid tax clearance certificate issued by the South African Revenue Service (SARS) and established that HDM has previously been awarded several tenders in South Africa.
These include a R9,250,000 tender from BBN Electric and Electronical it was awarded on 10 February 2020 to conduct electrical renovations and mechanical equipment replacements at Memel Primary School. The scope included classrooms, hostels, kitchen, staff room, and ablution facilities.
On 7 March 2022, HDM was also awarded a tender to supply and deliver a transformer to the Maluti-a-Phofung Municipality in Phuthaditjhaba.
PAC had sharply criticised LEC’s engagement with HDM, accusing the company of purchasing cables from what it described as “a cook” in South Africa — implying they may be second-hand or even stolen from Eskom.
But the LEC insider dismissed these allegations.
“It is not true that a company called HDM does not exist. It is located in Harrismith and is active in several sectors.”
According to the source, the use of single sourcing was necessitated by the failure of the initially contracted supplier to procure the cable on time. The company was reportedly far down on the waiting list at the South African manufacturer.
“A sole source was used because the original contractor couldn’t deliver the cables. There is only one manufacturer of this cable, and there is a long waiting list. LEC went for over half a year without these cables. They were only delivered in April this year.
“We later gave another contractor a chance, but he also failed due to the same issue. HDM was at the top of the list at that time — that is how it secured the deal.
“There were serious complaints from commercial property owners who had not been connected due to the cable shortage. Their businesses were incurring losses, and LEC had to act swiftly.”
Procurement process controversy
One of PAC’s major concerns was the use of single sourcing, which is in breach of LEC procurement regulations that require open tendering for contracts valued above M100,000.
However, according to another source, a public tender was issued in September 2024, but the equipment procured through that process was exhausted. Due to the ongoing nature of the original tender, issuing a new one was deemed impractical.
“This is specialised material. When it is specialised, we know the limited suppliers, and they are in our supplier database. So, we used selective tendering.
“There was already a public tender issued in September last year. After the equipment got finished, we could not issue another one because the previous tender was still considered active.”
The source also said a new tender was advertised but ran into problems during evaluation, allegedly due to corruption among some procurement officers.
“Some officers leaked tender documents to individuals who had not officially bought them. Those who had paid for the documents complained when they found out others had also received them through back channels.
“The management was alerted and swiftly halted the process. The legitimate bidders were furious, prompting management to withdraw the tender. It was reissued two or three months later.”
The source went on to allege that the same procurement staff later resorted to industrial action when the time came to evaluate the new bids.
“These are the same individuals who leaked the documents. When it was time to evaluate the bids, they went on strike, claiming the process was illegal.
“They have been frustrating this process from the start. This is the biggest tender ever at LEC, with a budget close to half a billion maloti and a three-year project timeline.
“There is a cartel from top management to junior officers. They have been approving contracts without following procurement procedures.”
Matsoso’s involvement
Former LEC Head of Finance, ‘Makabelo Matsoso, who recently resigned following a three-month suspension starting on 12 March 2025, had initially questioned the legitimacy of HDM and its trading documents during the PAC hearings.
However, a note seen by the Lesotho Times shows that Ms Matsoso did instruct Procurement Manager, Peo Mputsoe, to seek urgent approval from the Tender Adjudication Committee (TAC).
“PM (Procurement Manager), I find these single sources too many. Please prepare an urgent request for TAC approval for the reasons advanced in this analysis,” Ms Matsoso wrote.
Ms Matsoso has since told the Lesotho Times that she was barred from talking to the media.
