The Parliament’s Public Accounts Committee (PAC) has come down hard on prominent businessman and Revolution for Prosperity (RFP) Chairperson Teboho Kobeli over a M6.5 million debt owed to the Lesotho National Development Corporation (LNDC).
The Committee accused Kobeli of leveraging his political influence and proximity to power to shield his company, Duty-Free Sourcing Inc., from repaying the loan. The PAC established that the LNDC released the funds to the company following cabinet’s intervention in 2023, despite the firm already being classified as a bad debtor.
According to the LNDC, the company had previously defaulted on its obligations.
Appearing before the PAC this week, Kobeli, who also serves as Executive Director of Duty-Free Sourcing Inc., acknowledged the M6.5 million debt, saying the loan was intended to help preserve 2,000 jobs at the factory.
However, PAC Chairperson ‘Machabana Lemphane-Letsie pointed out that many of the factory’s employees are actually paid through the government’s youth apprenticeship programme under the Prime Minister’s Office.
The committee also criticised a letter Kobeli wrote to the LNDC’s interim CEO, describing it as “patronising.”
In the letter, Kobeli acknowledged the debt, stating: “This is a firm acknowledgement of debt in the amount of M6,500,000.00 as stated in your letter of demand…. While we unconditionally admit that our company is in arrears, we also can ascertain that it is not in vain. The advance from your office has overwhelmingly made a huge impact on many lives. Our company has created 2,000 permanent jobs for the destitute and secured enough orders to create 4,000 more permanent jobs in the next 18 months.”
PAC members, however, questioned why the company had not yet settled the debt, despite Kobeli’s written promise to pay it within six months, a deadline that falls this month.
In the same letter, Kobeli pleaded with the LNDC to delay referring the matter to its Legal Office, arguing that the company’s financial challenges made immediate repayment impossible:
“Appointment of a mediator and referral of this matter to the legal office will not change our current financial position, but allowing us a few more months will surely ensure that repayment of the outstanding balance is realised.”
This statement provoked a strong reaction from PAC members, who accused Kobeli of benefitting from political privilege.
PAC member, Mokhothu Makhalanyane, who is also an RFP MP, said: “It is unfair to other Basotho who are not politically connected. They cannot easily access loans like you do to expand their businesses and hire more staff. I want you to help us and the government to recover the LNDC debt. Your actions must demonstrate that we are taking this government out of trouble.”
In a letter addressed to Minister of Trade, Industry and Business Development Mokhethi Shelile, LNDC Interim CEO Advocate Molise Ramaili reminded the minister that, following a Cabinet directive, the corporation advanced M10 million to Duty-Free Sourcing Inc. to fulfil orders in the United States. The loan was to be repaid within 12 months at five percent interest.
“The Company asked for a payment break from May 2024 to December 2024 and committed to settle the full amount on 31st January 2025. The Corporation afforded the Company a payment break as proposed, but the company has failed to honour its obligation,” wrote Ramaili.
He added that a letter of demand was issued on February 6, 2025, warning that failure to pay would trigger mediation proceedings as per the loan agreement.
Companies’ records show that Duty-Free Sourcing Inc. (Pty) Ltd was incorporated on November 13, 2023, with two shareholders, Wijara Rohana Kumara Kahadugoda and Chun Yu Chen, before Kobeli became a shareholder on 6 January 2025. He now holds 10,000 shares, while Kahadugoda holds 1,000 and Chen 9,000.
The committee questioned how Kobeli acquired his shares, accusing him of using political networks to “salvage” the company. When asked how much he paid for his stake, Kobeli told the committee he could not remember, drawing scepticism from members.
“Buying shares or making an investment is very memorable,” remarked PAC member Dada Jooma, also of the RFP, implying that it was unlikely Kobeli had forgotten.
The committee instructed Kobeli to produce proof of payment for the shares. He was released to collect the documents but returned without them later in the day.
When pressed to commit to a repayment date, Kobeli requested four months, but the Committee rejected his proposal, giving him until 3 November 2025 to clear the debt.
“If you have not paid by then, do not come back before this Committee,” Lemphane-Letsie warned, adding that they would “explore other avenues” to recover the money.
Summary
- The PAC established that the LNDC released the funds to the company following cabinet’s intervention in 2023, despite the firm already being classified as a bad debtor.
- “Appointment of a mediator and referral of this matter to the legal office will not change our current financial position, but allowing us a few more months will surely ensure that repayment of the outstanding balance is realised.
- In a letter addressed to Minister of Trade, Industry and Business Development Mokhethi Shelile, LNDC Interim CEO Advocate Molise Ramaili reminded the minister that, following a Cabinet directive, the corporation advanced M10 million to Duty-Free Sourcing Inc.
Thoboloko Ntšonyane is a dedicated journalist who has contributed to various publications. He focuses on parliament, climate change, human rights, sexual and reproductive health rights (SRHR), health, business and court reports. His work inspires change, triggers dialogue and also promote transparency in a society.
