. . . as more skeletons tumble from LEC closet
Mohloai Mpesi
THE Lesotho Electricity Company (LEC) is yet again at the centre of controversy, this time over procurement irregularities amounting to more than M1 billion since the 2022/2023 financial year.
The revelations surfaced during a Public Accounts Committee (PAC) hearing held on Thursday, where LEC was summoned to respond to damning findings in the Auditor-General’s reports.
PAC chairperson, ’Machabana Lemphane-Letsie, was flanked by Revolution for Prosperity (RFP) legislator for Matala constituency, Dr Tšeliso Moroke; Democratic Congress (DC) lawmaker for Malimong, Lephoi Makara; and Basotho Patriotic Party (BPP)’s Tefo Mapesela, among others.
They expressed grave concern over LEC’s continued breach of procurement laws.
According to LEC’s own procurement policy, any tender worth over M100,000 should be subject to public tendering. However, PAC discovered that LEC has been bypassing this requirement using the Request for Quotation (RFQ) method for high-value procurements.
Ms Lemphane-Letsie squarely blamed the company’s Procurement Manager, Peo Mputsoe, for perpetuating illegal procurement practices.
“When I sum this issue relating to stock material, it is all an illegal activity in LEC. This money goes above M1 billion of illegal transactions. It is unfortunate,” Ms Lemphane-Letsie said.
“It becomes clear where the LEC problems are. There is no way such illegal transactions can be made, and some people are dismissed from work, while others like Mr Mputsoe are still at work and continuing with illegal transactions — until they even purchase cables from catering companies.
“It is up to the board whether it is willing to continue with this situation. We cannot sit in this house with LEC having initiated transactions that go beyond M1 billion illegally. I think they are going to surpass the National Budget if we can count well and go back to the systems.”
She also said the ongoing irregularities were being committed deliberately by those benefiting from the flawed system.
“All these happen to the convenience of these people acting. LEC problems will not end soon. There will not be contracts because contracts hinder them from doing these things that they are doing.”
Dr Moroke weighed in, stating that LEC officials had clearly breached procurement regulations.
“You breached the procurement regulations when you were allocating tenders,” Dr Moroke said.
In response, LEC’s Acting Head of Finance, Lintle Thamae, explained that supplier contracts had expired and, in their absence, the company resorted to RFQs to source stock material.
“Contracts of suppliers of material expired at that time. So, we were using Requests for Quotations to get the material. Like now, invitation for bidding was released but the evaluation process took a long time, therefore we evaluated the tender. The policy directs that tenders that are worth over M100 000 should be public tender. So, we were using Request for Quotation, and we were advised that we were breaching the law. Then we made a request from the tender committee, because the policy at that time was directing that the tender committee can approve any form of procurement above M100 000 to be made through RFQ,” she said.
Her explanation was met with harsh reproach from Ms Lemphane-Letsie, who told her to quote the law, not policies that can be easily manipulated.
“Tell us about the law, not policy, because you can deviate from the policy. This is not the first time you breach the law. You are a habitual procurement offender, deliberately!
“So do not tell us about the policy that you innovate when you want to breach the law. When you speak with Parliament, you should quote the law. Policy is not the law. It was to your convenience. It is so unfortunate that every time you act in that office, things like this happen.
“This is the second time that when you act in that office you work without contracts,” she said.
The Head of Finance, Makabelo Matsoso, who resigned this past week after being on suspension from 12 March 2025, explained that she was advised by Mr Mputsoe and denied giving any directive to purchase a M1.2 million four-core cable from HDM, a company LEC claimed was based in South Africa.
“On procurement issues, I am advised by Mr Mputsoe. These issues did not start in November when he says I gave a directive, which prompted them to buy from HDM in April.
“The issues relating to ways to use for purchasing when the contracts had not been in place — with the reasons that Mr Mputsoe was waiting for a response from legal — it is surprising because even after the material supply, other contracts pertaining to other tenders were given.
“All these issues started from Mr Mputsoe’s office, even before he could engage me,” Ms Maphathe said.
Dr Moroke also raised concerns about a company named Jagger, which was awarded a tender to supply software despite not meeting requirements.
“There is a company called Jagger which was given a tender to supply LEC with software to help read meters remotely. When the boxes of companies that submitted were opened, that company did not meet requirements — it did not have all the compliance requirements that were needed. The surprising thing is that it ended up being given the job.
“There is also a company called HDM Catering and Projects. Similarly, there were no legal procedures followed for it to be given the job,” Dr Moroke said.
The former LEC Procurement Officer, Tsietsi Mosae, revealed that when he assumed office in January 2022, tenders were already being allocated without contracts.
“I was Acting Procurement Manager from the 1st of January and became substantive from February 2022. During the time I was working there, there were no contracts,” he said.
Ms Lemphane-Letsie questioned him about this discrepancy:
“Mr Mputsoe says there were contracts for these high-value tenders allocated, and LEC has paid the money. You are saying when you assumed office in February 2022, there were no contracts, but tenders were being allocated?”
To which Mr Mosae responded: “Yes, it is true. From when I assumed office in the 2022–2023 financial year, there were no contracts. I was using the Public Procurement Regulations of 2007. They provide thresholds on how procurement should be done and that anything beyond M100 000 should go to public tendering.”
Ms Lemphane-Letsie pressed further: “There is a transaction of M800 million for Superb. Did you also purchase with RFQ?”
Dr Moroke added: “You said there is a policy that directs that when you procure material worth over M100 000, you go for public tendering. But there is someone you approved a tender of M1.8 million.”
In his defence, Mr Mosae claimed the figures showing in the SAP system were incorrect and could have resulted from a flawed transition from Sage to SAP systems.
“This thing that appears in SAP is totally wrong. There was a transition from the Sage system into SAP. By the time the trial and error were made, the system… I never procured material of the value of M800 million. That is totally wrong.
“In order to verify this information, we should go to Sage and retrieve that information — it will tell you the actual figures. This is totally wrong. And most of the figures appearing here are wrong,” Mr Mosae said.
Chair of National Assembly portfolio committees’ Chairpersons, Mokhothu Makhalanyane, revealed that their intelligence showed the company HDM does not exist.
“Some of the things that we do is to investigate some of the things that you tell us. So, yesterday we tried to investigate these things of HDM. Our intelligence told us that House Number 24, Matsokung Village, Qwaqwa, Bluegum Bush, does not exist. There is nothing like that. They even went there today; there is nothing like that.
“We need to verify some of these issues. Our intelligence went there, and they could not get such a house number — there is no such business there,” Mr Makhalanyane said.