- Whistle-blower’s plea ignored
- FIU concludes investigations
- DPP Motinyane and RSL dragged into the controversy
Staff Reporters
In a country where corruption allegations frequently surface, a shocking trove of correspondence obtained by Newsday exposes the chilling risks faced by whistle-blowers and the institutional inertia that stifles justice.
At the heart of the matter is an alleged tax fraud scheme amounting to over M450 million, implicating Tholo Energy and its Managing Director, Thabiso Moroahae.
The whistle-blower, whose identity Newsday has chosen to withhold for security reasons, has relentlessly pursued accountability, only to be met with bureaucratic silence, dismissive responses, and a glaring lack of action from law enforcement agencies.
The whistle-blower’s correspondence, addressed to the country’s top law enforcement bodies, reads like a desperate plea against an untouchable entity, Tholo Energy, shielded by official complacency.
Reading the correspondence evokes a chilling resemblance to the Gupta scandal in South Africa, where it was alleged that state institutions had been effectively captured.
Reporting corruption against them seemed futile, as they would, by the next day, be fully aware of every allegation made and the identity of the whistle-blower. This rendered the act of speaking out seem both powerless and perilous.
A letter to the DPP
A particularly damning letter, dated January 20, 2025, was sent to the Director of Public Prosecutions (DPP), Advocate Hlalefang Motinyane, following months of stonewalled attempts to engage the Revenue Services Lesotho (RSL), Financial Intelligence Unit (FIU), the Lesotho Mounted Police Service (LMPS), and the Directorate on Corruption and Economic Offences (DCEO).
“I am forced to write this letter directly to your attention with illegal practices that have been perpetuated by Thabiso Moroahae through Tholo Energy due to deliberate acts of disdain by law enforcement agencies to prosecute this company or its directors,” the whistle-blower wrote.
The letter suggested that Moroahae and his company allegedly orchestrated a decade-long tax fraud operation, under-declaring fuel volumes and siphoning off state revenue through undeclared levies, potentially defrauding the government of an estimated M450 million “or more”.
The whistle-blower explained to the DPP that they reported the alleged fraud to various agencies, but the responses, or lack thereof, painted a disturbing picture of complicity or sheer negligence.
The Involvement of FIU
According to the records Newsday obtained, only the FIU appeared to show any interest and conducted an analysis that confirmed the allegations.
However, despite sharing its findings with law enforcement, no further action has been taken.
“The law enforcement units of the country have assisted Tholo to be absolved from prosecutions and proudly left him considering and declaring himself as invincible,” the whistle-blower stated in frustration.
“There is proof of this malpractice and there is no reason as to why it has been stalled unless the (law enforcement) units have a peculiar interest in protecting Moroahae.”
“However, due to Moroahae’s considerable influence, law enforcement agencies have seemingly ignored these serious allegations,” the whistle-blower asserted. “There is concrete evidence of this malpractice, and the continued inaction raises questions about whether these agencies have a vested interest in shielding Moroahae from prosecution.”
“What transpired is that none of the first four agencies—except for the FIU—showed any interest in pursuing the matter. Fortunately, the FIU conducted an investigation and issued a report in mid-June 2023, confirming the crime. The report was shared with all law enforcement agencies, exposing the allegations of Tholo’s tax under-declarations,” the whistle-blower stated.
They referenced a letter from the FIU dated August 19, 2024, which specifically cited Section 15(1) of the Money Laundering and Proceeds of Crime Act of 2008.
“I urge your office to formally request this report from the FIU and review its findings, which expose clear illegalities. Once you have assessed the report, there should be sufficient grounds to initiate legal proceedings. I am fully available to provide further insights into the matter,” the whistle-blower wrote.
When Newsday contacted Advocate Hlalefang Motinyane yesterday to confirm receipt of the letter, she stated that she was in a meeting and requested a follow-up call in an hour. However, subsequent attempts to reach her went unanswered.
Efforts to obtain a comment from Moroahae were also unsuccessful, as his phone remained unreachable.
Newsday has learned that the whistle-blower sent a follow-up letter to the LMPS, DCEO, RSL, and FIU more than six months ago, on August 8, 2024, requesting an update on the progress of the investigation.
“As you will recall, I formally reported the massive fraudulent under-declaration of fuel levies by Tholo Energy (Pty) Ltd to your office some time ago. This letter serves as a follow-up regarding the progress made on the matter to date. I would sincerely appreciate your response as soon as possible, preferably within three days,” the whistle-blower wrote.
The letter was met with vague and unhelpful responses.
RSL responds
About six days later, on August 14, 2024, RSL Commissioner General ‘Mathabo Mokoko acknowledged the whistle-blower’s contribution but cited taxpayer confidentiality laws as a barrier to disclosing any investigation progress, if there was any at all.
“Your information is invaluable in our efforts to ensure fair and equitable taxation. However, due to taxpayer confidentiality laws, we are unable to provide any details regarding the progress, results, or decisions made based on the information you have provided,” Mokoko stated.
She further emphasised that this restriction applied to any “progress or results of any investigation, if any has been undertaken.”
FIU Director Jothame Phakisi issued a terse response on August 19, 2024, confirming that the unit had conducted an analysis and shared its findings with the relevant authorities.
But no indication was given as to whether further action had been taken.
“Please be informed that the Financial Intelligence Unit conducted an analysis of the matter and shared the results with both investigative and supervisory authorities, as required under Section 15(1) of the Money Laundering and Proceeds of Crime Act of 2008, as amended.”
FIU is established under Section 14 of the Act.
Section 15 of the Act designates the FIU as the central agency responsible for receiving, requesting, analysing, and disseminating to investigatory and supervisory authorities disclosures of financial information:
- (a) concerning suspected proceeds of crime and alleged money laundering offences;
- (b) required by or under any law to combat money laundering;
- (c) concerning the suspected financing of terrorism and terrorist property.
Section 15(3) further stipulates: “The Unit shall refer any matter or information derived from a report or information it receives to the appropriate law enforcement agency in Lesotho if, on the basis of its analysis and assessment, it has reasonable grounds to suspect that the transaction could be pertinent to the investigation or prosecution of a money laundering offence, a terrorist offence, or another serious offence. In connection with this, the Unit shall also send a copy of such referral or information to the relevant supervisory authority.”
The FIU’s reference to Section 15(1) of the Money Laundering and Proceeds of Crime Act of 2008 suggests that the findings were serious enough to warrant referral to investigatory and supervisory authorities.
However, the agencies remain unmoved, failing to act on the very evidence they received.
LMPS weighs in
On August 26, 2024, Commissioner of Police Borotho Matsoso washed his hands of the matter, stating that the RSL was the main stakeholder and that despite existing challenges, “the matter was still being dealt with accordingly.”
“The office of the Commissioner of Police humbly wishes to inform you that the process you requested is led by the Revenue Services Lesotho (RSL) as the main stakeholder in this regard,” Matsoso said.
This was the last time the whistle-blower received any communication regarding the case.
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