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Phapano, prime suspect in LEC corruption – Mahao 

In Local News, News
March 26, 2025

 

Mohloai Mpesi 

Former Minister of Energy, Professor Nqosa Mahao, has labelled the ministry’s Principal Secretary, Tankiso Phapano, a “prime suspect” in the ongoing corruption allegations plaguing both the ministry and the Lesotho Electricity Company (LEC). 

Prof Mahao accused Mr Phapano of pressuring payments to an incompetent contractor, Phaks JV, whose shoddy work had delayed the completion of the Ha-Belo electrification project in Butha Buthe. 

The Ha-Belo project has been mired in controversy as it lags behind amid allegations that the incompetent contractor, Phaks JV, had continued grabbing money from the state while delivering little or no work at all. 

Prof Mahao alleged in parliament that although the project had been corruptly awarded prior to Mr Phapano’s appointment, the latter had simply taken over the corruption and facilitated payments amounting to M27 million to the company that was not delivering. 

Prof Mahao insisted that PS Phapano had made dubious payments to Phaks JV yet the PS knew that the company was incompetent and had bungled the whole project.   

The energy ministry awarded the contract to Phaks JV on 18 August 2021 for the construction of the Ha Belo 33/11kv substation with an initial timeline of 18 months. Initially valued at M86.6 million, project costs have since escalated to M128 million. 

Mr Phapano, who has since rejected all the allegations being flaunted against him over the project, became Energy PS in January 2024. Even though he was not PS when the project was awarded, Prof Mahao alleged that Mr Phapano had facilitated unlawful payments amounting to M27 million to Phaks JV while he (Mahao) was still Energy minister. 

The Ha Belo project has since been suspended at 58 percent completion due to concerns over its administration. 

Prof Mahao made his scathing remarks against Mr Phapano in the National Assembly yesterday morning after the Speaker read a motion to adopt the budget and estimates report for the 2025/2026 financial year. 

Prof Mahao claimed that PS Phapano interfered in LEC’s projects despite a subsidiary agreement between the government and the World Bank meant to prevent ministerial meddling. 

“When I assumed office at the Energy Ministry, I found a subsidiary agreement prepared by the World Bank and signed by Minister of Finance Retšelisitsoe Matlanyane, Minister of Natural Resources Mohlomi Moleko and former MD LEC Mohato Seleke. 

“The agreement aimed to eliminate the chaos caused by the ministry’s interference in LEC tender awards. It clearly established the Project Implementation Unit. The agreement explicitly stated that LEC shall not abdicate its assigned responsibilities. 

“The initial cost of the project was M86 million, but unauthorized payments increased it to M128 million. An additional M50 million is now needed to complete the project,” Prof Mahao said. 

RFP MP for Qeme, Sello Hakane, questioned whether the contractor was still being paid despite no progress on the ground. 

“Are you aware that the contractor at Belo is still being paid? He has received payments of M9 million, M12 million, and M14 million, with another M3 million on the way, despite no work being done,” he asked. 

Prof Mahao said before he left office, the contractor had already been paid M27 million without any work being completed. 

Similarly, he argued that the Ha-Tikoe contract should be reviewed to determine if it followed procurement procedures.  

Prof Mahao was fired by Prime Minister Sam Matekane in November last year after he gave the premier an ultimatum, to either fire Mr Phapano, or risk the BAP withdrawing from the coalition government. The BAP joined the coalition government in November 2023 as Mr Matekane sought to bolster his majority in parliament after surviving a no confidence bid a month earlier. While Prof Mahao wants out of the coalition, BAP remains part of government as his BAP MPs have refused to withdraw the party from the coalition. 

Basotho National Party (BNP) leader, Machesetsa Mofomobe, has backed corruption allegations against Mr Phapano. 

Mr Mofomobe alleged that PS Phapano had pressured LEC Managing Director, Mohlomi Seitlheko, to sign “illegal” contracts, with suppliers. 

Minister of Energy, Mohlomi Moleko, confirmed that a forensic audit was being conducted to investigate the corruption allegations. 

He said completing the Ha-Belo project was a priority before allocating funds for the Ha-Tikoe project in Maseru. 

“We cannot start the Tikoe project while funds for Belo are insufficient. We must complete Belo first,” he said. 

MPs, including Motlatsi Maqelepo, stressed that corruption ran deep in Lesotho and called for stern action against its perpetrators. 

Meanwhile, PS Phapano has denied any wrongdoing, stating that the Ha-Belo project was signed in 2021 before he assumed office. (See story on page 12). 

Mr Phapano also wrote to the Clerk of the National Assembly, Advocate Fine Maema, yesterday, seeking audience with Parliament, to address Mr Mofomobe’s allegations regarding the Ha-Tikoe Substation contract. 

“…the information presented by the Hon. Member of Parliament (Mofomobe) is flawed and if left unverified, poses a risk to the valuable relationships between the Ministry of Energy and the World Bank, Parliament and other key stakeholders Furthermore, such unsubstantiated claims could unjustly tarnish the reputation of the Principal Secretary, who is committed to ensuring the success of this contract and its associated projects,” Mr Phapano wrote. 

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