25/06/2025
The problem of LEC has always been far deeper than the Chair’s flight tickets. PAC must learn to stick to the assignment on Auditor General’s report and stop politicizing this matter.
PAC Confirms Acting Policy Was Properly Adopted
By Malefo Thinyane
Maseru
[LEC Board Chairman, Thabo Khasipe]
The Chairperson of the Lesotho Electricity Company (LEC) Board, Mr Thabo Khasipe, appeared before the Public Accounts Committee (PAC) this week and made damning revelations about the national power utility, describing it as being riddled with fraud, collusion, and a complete breakdown in internal governance systems.
In a candid briefing to Members of Parliament, Khasipe painted a disturbing picture of internal decay at the state-owned company. He disclosed the discovery of duplicated electricity transactions involving both LEC staff and outside contractors. “There is a troubling degree of fraud and collusion within the LEC,” he said, pointing to specific companies, including Cell Power, which is owned by Minister Limpho Tau from the Prime Minister’s Office. The alleged connection has sparked concerns over high-level conflicts of interest and misuse of public office.
Khasipe revealed that while management initially gave implicated companies a 90-day grace period to refund the utility, the Board has now resolved to reverse all illicit transactions within 14 days, citing contractual obligations and principles of fairness.
“There are suspicions of illegal activity,” he added. “This is no different from a bank overpaying a client, the money must be reversed without delay.” He also confirmed that LEC employees involved in these schemes would be issued show cause letters pending further investigation.
The PAC heard that some LEC staff had been issuing fake receipts to post-paid customers to help them dodge their bills. Khasipe was clear: “That’s fraud. Pure and simple. Both the staff member and the customer must be held accountable whether through legal channels or disciplinary action.”
Khasipe didn’t hold back from calling out broader systemic failure within the company. “What we see at LEC is not isolated misconduct, but evidence of a broken internal control mechanism,” he told MPs, also noting that no internal audit has been conducted since 2023, something he described as “completely unacceptable.”
PAC Chair Challenges Khasipe Over Policy Claims
However, during the same hearing, PAC Chairperson Hon. Machabana Lemphane-Letsie pushed back against Khasipe’s assertion that the LEC’s Acting Allowances Policy was not properly ratified. She accused him of misleading the committee and proceeded to read into the record a memorandum signed by former Managing Director Mr. Mohato Seleke, dated October 29, 2021.
The memo, addressed to all LEC staff, clearly stated that the revised Acting Appointments Policy had been approved by the LEC Board of Directors and was scheduled for implementation on November 1, 2021. It emphasized that the policy aimed to prevent long-term acting appointments and adjust the compensation model accordingly.
“This Policy has been consulted on with the representative staff union, and has been approved by the relevant governance authority,” the memo read. “The importance of adherence to the revised policy cannot be overstated.”
The memo appears to contradict Khasipe’s claim that the policy was not properly adopted, raising serious questions about the accuracy of information presented to the PAC.
Disciplinary Action Underway
Also addressing the committee was LEC Managing Director Mr Nathaniel Maphathe, who confirmed that internal disciplinary processes were in motion. He said Mr. Sello Mothae, one of the officials linked to the duplicated electricity unit transactions, had been issued a show cause letter. Meanwhile, Mr. Bereng Bereng had already appeared before a disciplinary hearing for similar allegations.
Governance at a Crossroads
The revelations at the PAC point to deep-seated problems at LEC, not only financial misconduct and fraud but also weak accountability and oversight structures. With senior staff under investigation, and policy disagreements exposed at the highest levels, the company appears to be in the grip of a governance crisis.
