Mathatisi Sebusi
MINISTRY of Energy Principal Secretary, Tankiso Phapano, has distanced himself from allegations of financial mismanagement surrounding the Ha Belo electrification project, which has led to its depletion of funds and failure to be completed on time.
The project reportedly cost the government an additional M49 million due to the engagement of an incompetent contractor who allegedly lacked the necessary expertise by the Lesotho Electricity Corporation (LEC). Further costs are expected as efforts continue to complete the project.
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.
“I have nothing to do with the Ha Belo project. Even common sense says so. The media has been spreading propaganda without verifying the allegations. This time, I will sue anyone who publishes falsehoods about me,” Mr Phapano said.
Mr Phapano made these remarks during a press conference on Monday, which aimed to update the media on the progress of the ministry’s projects. He expressed frustration that the media focused on negative reports instead of highlighting his achievements. He noted that when he took office, only one village had been electrified under the rural electrification program, whereas now, 13 villages have received electricity, with additional projects in progress.
“The media has been publishing falsehoods about me and the ministry regarding this project instead of reporting on our achievements. They did not even attempt to verify their claims. I will sue anyone who continues to spread misinformation about me,” he reiterated.
After assuming office, Mr Phapano instructed officials to assess the status of the Ha Belo project and provide recommendations for its continuation. He then wrote to the Minister of Finance and Development Planning, informing her about the project’s state.
A savingram dated 9 September 2024, written by Mr Phapano to the Minister of Finance and Development Planning states: “This serves to inform you that the above-mentioned contract under Part 1 of the Financing Agreement has depleted its funds, while physical progress of the project is estimated at less than 60%.
“Ever since my arrival at the ministry in January 2024, I have observed unsatisfactory progress and performance under this project. I have confirmed through monitoring and evaluation that there is indeed a lack of progress and depletion of allocated funds.”
Mr Phapano revealed that the project’s initial contract value was M86 million, but by the time he joined the ministry in 2024, costs had escalated to M136 million.
“I even wrote to the World Bank informing them that the project had depleted its funds. The World Bank did not object but advised us to defer the signing of the Ha Tikoe contract until the Belo contract resolution is finalised and sufficient project funds are confirmed,” he said.
He said discussions were currently underway between the government and the World Bank to determine the best course of action to complete the Ha Belo project, which he said was expected to be finalized within six months. Mr Phapano added that cables and transformers had already been procured and are ready for installation, with the project now over 55% complete.
The Ministry of Energy’s Director of Legal Affairs, Mabohlokoa Fanyane, explained that the contractor depleted the project’s funds without completing the work.
According to a confidential report compiled by an engineer engaged by the Ministry of Energy to assess the Ha Belo project, the contractor lacked the necessary skills to manage the project effectively. Several crucial tasks, including design reports, were left incomplete.
The report further revealed that the initial contract value of M86,619,799.16 had ballooned to M136,039,276.70 due to the contractor requesting an extension. The contractor cited a 10-month delay caused by compensation exercises and the finalization of safeguards. Despite the contract being a lump-sum agreement, payments were made using Bill of Quantities (BOQ) principles, with some processed and paid through the system.
The Ministry of Energy had entered into a contract with PHAKS JV in August 2021 for the construction of the Ha Belo 33/11kV Substation and 33kV line. The agreement stipulated an 18-month completion period, yet three years later, the project remains unfinished, necessitating additional government funding.
The Ha Belo project is part of the Lesotho Renewable Energy and Energy Access Project (LREEAP), which is financed by the World Bank. LREEAP aims to accelerate electricity access to economic development zones in peri-urban areas and deploy mini-grids to serve rural and remote communities.
A source close to the matter informed the Lesotho Times that Mr Phapano had reviewed the confidential report, and it has also been discussed at high-level meetings.
Former PS Energy, Themba Sopeng, has since been charged with corruption, embezzlement, and money laundering over the Ha Belo tender.
He was charged alongside ‘Mathapelo Silase, Neo Lekhotla, Motsekuoa Phalole, Teboho Mokhethi, Makhabane Leluma, Mojaki Lesenyeho and Mookho Pule and other representatives of PHAKS Joint Venture.
They were accused of committing various offences and irregularities in the manner they awarded the M86 million tender for the design and construction of the Belo Power Station. The power station was not fully built despite the whopping M86 million paid for its design and construction.
They appeared before Senior Resident Magistrate Peter Murenzi in Maseru on 24 January 2025, who granted them M10,000 cash bail and M100,000 surety each.
