The Parliament’s Public Accounts Committee (PAC) continued its probe into alleged corruption and tender manipulation at the Lesotho Electricity Company (LEC) this week, uncovering troubling details surrounding a failed M5.2 million software purchase.
LEC appeared before the committee to account for issues flagged in the Auditor-General’s report. Central to the hearing was the revelation that a remote meter reading software, acquired around 2021 for over M5 million, is currently non-functional. The software, meant to automate meter readings, has remained dormant following the liquidation of the Bloemfontein-based supplier, Jager (Pty) Ltd, shortly after the sale.
LEC officials told the PAC that the software was already installed in their systems, but the utility has since been unable to use it or contact the supplier for support or reimbursement.
Suspended LEC Head of Customer Experience, Lebohang Mohasoa, was subjected to tough questioning over the procurement. He informed the committee that the company was engaged through an open tender. However, PAC member Dr Tšeliso Moroke challenged this explanation, revealing that Jager (Pty) Ltd lacked proper compliance documentation when tender submissions were opened.
“It was established that upon unsealing the submissions, Jager had no documentation proving compliance with requirements,” said Dr Moroke.
He further questioned why payment was made to the company before it had submitted any performance or completion report, as is standard in procurement procedures. This irregularity, he noted, raised serious concerns about adherence to procurement protocols at LEC.
Compounding the issue, LEC revealed it had decided to procure meters separately after discovering that the existing ones were outdated and incompatible with remote reading technology. As a result, the utility still relies on manual meter reading, undermining the intended purpose of the software.
The PAC heard that LEC is now suffering losses from the investment, with no benefits realised from the software purchase and no means to recover the funds, as the supplier cannot be traced following its liquidation.
LEC is currently under forensic audit, launched to investigate deep-rooted corruption and maladministration within the utility. As part of the process, the executive management team was suspended for three months to allow the probe to proceed without interference.
LEC Board Chairperson, Thabo Khasipe, who attended the PAC session, confirmed that the forensic auditors have requested a one-month extension and are expected to complete their investigation by July 2025.
Khasipe assured the committee that disciplinary action will be taken against anyone found guilty of wrongdoing. He also revealed that a turnaround strategy is in development and awaiting board approval before implementation.
