While the Lesotho Electricity Company (LEC) routinely cites vandalism as a major reason behind electricity tariff increases, the Public Accounts Committee (PAC) has uncovered a glaring contradiction.
The company procured electrical cable worth over M1.2 million from a South African-based catering business, raising suspicions of black-market dealings.
The PAC this week hauled LEC’s acting Managing Director, Ntsie Maphathe, before the committee to explain his role in the irregular purchase. Maphathe, who previously served as Transmission Manager and recently stepped down from the board to act as MD following the suspension of Mohlomi Seitlheko, is under fire for authorising the transaction.
Central to the scandal is LEC’s Procurement Manager, Peo Mputsoe, who allegedly sourced the cable directly from Witsieshoek near QwaQwa, Free State, bypassing standard procurement procedures.
Shockingly, the supplier in question is a catering company with no known track record in electrical equipment, a fact that the PAC said points to black-market sourcing.
The PAC was dismayed that the cable was received on 1 April 2025, the very same day the Procurement Committee approved the deal, while the official purchase order was only issued two days later. Committee members questioned how a catering company, lacking valid trading documents, was able to supply technical infrastructure to a national utility.
Further raising red flags was a price increase of over 70 percent from around M700,000 to M1.2 million, within months, which the committee described as highly suspicious. Transporting the cable cost an additional M75,000. The PAC suspects the cable could be either stolen or second-hand.
“It is extremely concerning that while the public is being asked to pay more for electricity to cover theft and vandalism, LEC is buying critical infrastructure from sources that may be part of the very problem,” said PAC Chairperson ’Machabane Lemphane-Letsie.
In a recent interview with Lesotho Television, LEC Board Chairperson Thabo Khasipe disclosed that the utility owes suppliers over M2 billion. He also said that rampant cable theft has contributed to repeated applications to the Lesotho Electricity and Water Authority (LEWA) for tariff increases.
However, PAC members pointed to email exchanges between Mputsoe and suspended Head of Finance, ‘Makabelo Matsoso, where Matsoso warned against the irregular transaction. Despite this, Mputsoe pressed ahead with the purchase, claiming other suppliers were out of stock.
Both Matsoso and acting Head of Finance Lintle Thamae admitted during the PAC hearing that they authorised payments for the cable, even though no formal supplier contract existed. Thamae revealed that expired supplier contracts and improper use of Request for Quotations (RFQs) had become common practice at LEC, despite procurement policy requiring tenders for transactions over M100,000.
Tsietsi Mosae painted an even bleaker picture, testifying that unqualified clerks often handled procurement, and that political interference in hiring was rife. He alleged that some companies were deliberately blocked from doing business with LEC and that the utility still operates under outdated financial regulations.
The PAC cited the Public Procurement Act of 2023, which mandates state-owned enterprises like LEC to ensure transparency, competition, and value for money. Committee members warned that without accountability, the cost of corruption would continue to be passed on to the public.
Lemphane-Letsie stressed that LEC must be mindful of its financial decisions. “Whatever LEC does has a financial impact. Where mistakes have been made, we should not defend them; we must fix them. Somebody needs to take action, a very bold decision that will save LEC,” she said.
PAC member ’Maboiketlo Maliehe called on the board to avail documents to the forensic auditors, warning that failure to do so would make the audit costly to the nation.
The Executive Committee (ExCo) remains under temporary suspension to allow a forensic audit to proceed. The audit is expected to be completed next month.
LEC had submitted a multi-year tariff hike application for the years 2023/24 to 2025/26. It requested a 23 percent increase for 2023/24 and 15 percent for each of the two subsequent years– an overall 62 percent upward adjustment for the three-year period.
LEC operates in all districts and, as of March 2023, served 301,872 customers nationwide, across industrial, commercial, domestic, street lighting, and general-purpose categories.
According to LEWA’s Key Performance Indicators, LEC is required to make at least 15,400 new connections annually. However, by 31 August 2023, only 3,819 had made a shortfall primarily due to cash-flow challenges and delayed procurement of materials.
LEC’s 2023 report acknowledged these issues when justifying its tariff hike application. It added that it is gradually implementing a robust supply chain management programme to address material shortages and manage contractors more effectively.
For the financial year 2022/2023, LEC was awarded M34 million to maintain its electrical infrastructure.
“Aggressively dealing with corruption” was cited as a key priority in LEC’s three-year strategic plan (2021/22 to 2023/24) an ambition that may not have been successfully realised.
