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Portfolio committee urges review of LHDA compensation policy

Business

Staff Reporter

The National Assembly’s Portfolio Committee on Natural Resources, Tourism, and Land Cluster has recommended disciplinary action for all Lesotho Highlands Development Authority (LHDA) officers involved in the alleged mishandling of funds for the Ha Mokhathi community to prevent future issues.

The committee also called for LHDA to review and amend its compensation policy.

The recommendations follow the committee’s scrutiny of petitions from the villages of Ha Makhalanyane, Ha Mokhathi, Ha Nchela, and Ha Thafeng.

As part of its mandate, the committee examined the LHDA’s administration, legislation, budget, and policies, as allowed under standing orders that empower it to investigate departments responsible for natural resources, water, mining, energy, and other sectors.

During the review, the committee acknowledged that the inception of the Lesotho Highlands Water Project (LHWP) recognised the environmental and social impacts on local communities.

The LHWP Treaty mandates that communities affected by dam projects receive compensation for presumed losses. A Compensation and Resettlement Task Team (CRTT) was created to guide affected families on compensation options and entitlements.

The Ha Nchela community expressed frustration to the portfolio with alleged repeated requirements from LHDA to resubmit development plans.

Initially requesting a hall to generate rental income, the community shifted its focus to water access after LHDA reportedly raised concerns over potential conflicts.

According to LHDA’s Chief Executive Officer (CEO), Tente Tente, Ha Nchela has a remaining fund balance of M608,491.50 earmarked for water infrastructure.

Ha Makhalanyane community voiced concerns about delays in electricity supply and the construction of a chief’s office. Tente reported that the community’s account holds M8,911,704.59 but cited misunderstandings with the Lesotho Electricity Corporation (LEC) over installation as the cause of the delay.

Similarly, Ha Thafeng community requested an access road and a chief’s office.

Tente noted that M1,230,619.84 remains in their fund and mentioned that LHDA had maintained positive relations with this community.

Ha Mokhathi community, however, expressed dissatisfaction with a recent M10,000 disbursement and alleged mishandling of funds by their Legal Local Entities (LLEs). Community members reported that some LHDA officers openly favored specific committees, hindering oversight.

Tente confirmed that the community’s initial M1,300,000 fund had been depleted but denied LHDA’s involvement in any unauthorised transactions.

The committee highlighted LHDA’s obligation to support host communities with development benefits, as outlined in the 1997 Compensation Procedures, including improved infrastructure, water, health facilities, and resource management programs.

The committee’s report stated that LHDA’s prolonged inaction contravened the LHWP Treaty, which requires the Authority to sustain the standard of living and income levels of displaced persons.

The committee’s recommendations include:

  1. Completion of community projects by October 2024:
    • Ha Nchela: Construction of a community hall.
    • Ha Thafeng: Provision of a chief’s office and an access road.
    • Ha Makhalanyane: Support for electricity supply and construction of a chief’s office.
  2. Full accountability for Ha Mokhathi funds: LHDA should assume responsibility for Ha Mokhathi’s community funds, following its refusal to suspend transactions pending the committee’s investigation.
  3. Disciplinary measures for LHDA officers: Action should be taken against LHDA officers involved in the alleged mismanagement of Ha Mokhathi’s funds to prevent further missteps.
  4. Amendment of LHDA’s compensation policy: The LHDA should update its compensation policy to better meet the needs of affected communities.

The report called for these measures to be implemented promptly to address the longstanding grievances of the affected communities and ensure equitable treatment under the LHWP’s mandates.

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