…as World Bank demands accountability
Mohloai Mpesi
PRIME Minister, Sam Matekane, has revealed that the protracted electrification of the Ha Belo Industrial Project requires an additional M50 million to be completed.
Initially valued at M86.6 million, project costs had since escalated to M136 million. And now an additional M50 million is needed.
Mr Matekane made these remarks during a press conference held at the Lesotho National Broadcasting Services (LNBS) this week, aimed at informing the public about government strategies to address unemployment.
He said the Ha Belo project was far from over, despite the fact that the Ministry of Energy had processed payments for approximately 15 certificates submitted by the contractor.
The Energy ministry awarded the contract to Phaks JV on 18 August 2021 for the construction of the Ha Belo 33/11kV substation and 33kV line LS-LEC-190007-CW, with an initial timeline of 18 months.
The Ha Belo electrification project, which forms part of the World Bank-funded Lesotho Renewable Energy and Energy Access Project (LREEAP), aims to increase electricity access in peri-urban and rural areas to drive economic development. LREEAP also seeks to establish a sustainable framework for rural electrification through mini-grids in remote regions.
He said that although they want the Ha Belo project completed, an additional M50 million is still required to finalise it.
“Right now, we want Ha Belo to be completed. There was a project to connect electricity at Ha Belo which was worth M86 million, and the money was released for the project to carry on,” Mr Matekane said.
“As we speak about the project now, it is less than 60 percent complete, but the M86 million is finished. It even took another M41 million from other projects, but still, it is not completed even today.
“Right now, we are told that another M50 million is needed for the project to be completed.”
The premier also said the World Bank was dissatisfied with the misuse of funds meant for the project. He said the Bank had questioned how M22 million, part of its investment in the project, was used because the government could not account for it. He said they could not find any evidence of how the money was spent.
“It was discovered that money amounting to M22 million was missing. The World Bank wants us as a government to show them how the money has been utilised. Give us the proof, they said. But the government does not have proof. All these things happened before we took office. No receipt, no nothing, but M22 million is gone.
“If you are unable to give us evidence, we want our money. We were forced to, and ended up giving them their money. The World Bank took it. We don’t have evidence on what happened regarding the finances of the Ha Belo Industrial Project,” he said.
He said the World Bank was also questioning the use of another M45 million, and they wanted answers before the end of this month.
“There is another M45 million which they said they want proof that it was used well. We are still working on that issue. We do not know what we will do or what will happen. They gave us from April until the end of June to prove that the M45 million was used accurately. If we do not have evidence, they also want it.
“All these issues happened before we took over governance. We found them in the office. We told the police and DCEO to assist so that we can have something tangible, whether the money was used for what it was intended for.”
The Ministry of Energy’s Principal Secretary, Tankiso Phapano, has since distanced himself from the Ha Belo corruption saga.
In March this year, Mr Phapano clarified that the contract for the project was signed in August 2021, with work commencing in the same month. However, he only assumed his role as Principal Secretary in January 2024. He said he was not part of the team that signed the contract or managed the project’s finances and was only briefed about the situation during his first week in office.
This after his predecessor, Themba Sopeng, was in January this year charged with corruption, embezzlement, and money laundering. The Directorate on Corruption and Economic Offences (DCEO) said Mr Sopeng unlawfully and intentionally engaged in corrupt practices in June 2021 by “misusing” his role as chief accounting officer within the Energy ministry by facilitating the award of the tender to Phaks JV without adhering to proper procurement processes.
Mr Sopeng was charged alongside Binare Ramochele, and Mookho Pule, ‘Mathapelo Silase, Neo Lekhotla, Motsekuoa Phalole, Teboho Mokhethi, Makhabane Leluma, Mojaki Lesenyeho and Mookho Pule and other representatives of Phaks JV who allegedly played various “criminal” roles in the project.
Mr Matekane’s cabinet also addressed the ongoing dispute between the Public Accounts Committee (PAC) and the Lesotho Electricity Company (LEC).
Just last week, LEC Board Chairperson, Thabo Khasipe, filed an urgent High Court application to stop the PAC inquiry into LEC corruption and have all evidence presented by LEC officials removed from the record.
Mr Khasipe has asked the court to bar the PAC from continuing with the probe, arguing that the matter falls outside the Committee’s mandate as set out in Standing Order 97(5) of the National Assembly Standing Orders (Legal Notice No. 114 of 2022) and Section 9 of the Parliamentary Powers and Privileges Act No. 8 of 1994.
He has also sought an order compelling the PAC to release the record of proceedings from May to June 2025, when LEC staff testified.
Additionally, Mr Khasipe wants those proceedings reviewed and set aside, claiming the PAC exceeded its legal authority. He is asking the court to declare the proceedings unlawful, null, and void.
However, LEC suffered a setback this week when Chief Justice Sakoane Sakoane ruled that their application was not urgent.
At the PM’s press briefing, Minister of Education and Training, Professor Ntoi Rapapa, said the government is working hard to resolve the problems at the LEC. He said they have already taken steps such as suspending the board and executive management.
“Issues relating to LEC need to be solved. After the audit report was released, the government resolved to suspend the board because it was there when these things were happening.
“The government went further to suspend the executive management of LEC so that a forensic audit can be conducted. These are all steps that are being taken to uncover the truth behind the malpractice at LEC, so that when the government makes decisions, it will have all the facts.
“The reports before the PAC right now include the Auditor-General’s report of March 2023, the 2019 forensic audit report with its own findings, and the Internal Audit report covering the period 2022 to January 2025.
“The government is trying to use these documents to resolve the problems at LEC,” Prof Rapapa said.
He emphasised that civil servants should be allocated time to respond when questioned by the PAC.
“There was an unfortunate incident where LEC filed a case against PAC regarding the issues that happened in Parliament. Maybe there was a misunderstanding that has to be fixed. But in the PAC, civil servants are supposed to be given an opportunity to answer.
“When you are looking for corruption and facts, anybody coming before any panel should be given a chance to answer. My understanding is that they are going back. The Minister of Energy will be there, and if not, I will be there.”
