A bitter wrangle over a mine at Nqechane in Leribe district has drawn the attention of the Directorate on Corruption and Economic Offences (DCEO), amidst allegations that a M500 000 bribe exchanged hands for a prospecting license.
Local villagers have also been sucked into the long-drawn dispute and wantcontroversial diamond company, Sterlek Mining (Pty) Ltd, out of the area, citing the impact of mining operations on their environment and livelihoods.
At the heart of the controversy lies a tangled web of alleged corruption and fraud surrounding operations at Nqechane. The saga began in 2015 when Batho Pele Mine, obtained a prospecting license.
Sterlek Mining (Pty) Ltd is alleged to have hijacked the project by fraudulently obtaining a prospecting license from the then minister of mining, Serialong Qoo, and commissioner of mines, Pheello Tjatja.
Batho Pele executive director and founder, Tšolo Mosoeunyane, allege that Sterlek paid Qoo and Tjatja a combined M500 000 to acquire the license without following proper procedures.
Batho Pele was registered in 2013 and applied for a prospecting license the same year. On the other hand, Sterlek was registered in January 2022 and acquired a prospecting and mining license same year.
Tjatja this week dismissed the allegations of receiving a bribe.
He said Batho Pele’s license had expired in 2018 and the company failed to pass the second chance to re-apply as its documents were incomplete.
As a result, the mining board decided to re-open the application process in July 2022 and Sterlek won the bid.
“Sterlek’s license was signed by the minister of natural resources, Mohlomi Moleko. It is not true that the company paid me any amount of money,” Tjatja said on Wednesday.
The DCEO confirmed that it has launched investigations into the suspicious circumstances surrounding the licenses granted to Sterlek.
DCEO’s public relations officer, ‘Matlhokomelo Senoko, confirmed this week that the body was investigating potential irregularities in the licensing process.
“Investigations are underway,” she said.
Nqechane villagers allege that Sterlek is operating in their area without consulting them.
They said there should be a signed letter by the community indicating that villagers have been the project their blessings.
The villagers further claimed that their fields, roads and water spring had been destroyed by Sterlek’s operations, hence their strong disapproval.
The company only met them after it had already been granted a prospecting license, they claimed, adding that the consultations were also not successful as no consensus was reached between them and Sterlek.
Community Councillor for Nqechane Electoral Division (ED) in Sephokong, Malebanye Ntšoereng, Ntšoereng indicated that on June 7 and August 20, 2024, the council and the area chief of Nqechane Ha Lelingoana, Mohato Lelingoana, on behalf of the community, wrote to Moleko, seeking his intervention in ensuring that Sterlek ceases to conduct prospecting operations in the area.
In addition to the community concerns, Ntšoereng noted that the ministry and Sterlek violated Section 20 (3) of the Mines and Minerals Act, 2005 that states that “where an area has been prospected for a period of six years, no new prospecting license shall be issued for the same area”.
Mosoeunyane said his company, which then had four partners, acquired a two-year prospecting license in 2015 and it expired in September 2017. The license was extended to September 2018.
He said Batho Pele had partnered with other three South Africans. One of them, Jabulani Kenneth Mahlangu purportedly left the company and formed Sterlek in 2022.
He noted that six months before the expiry of their prospecting license, he learned of Sterlek’s presence in the picture.
“It was a complete shock to us. We had already applied for the mining lease. I discovered that Ntate Tjatja who was supposed to be assisting us with the process had been using our documents to secretly acquire the lease for Sterlek. The deception was utterly devastating to the community and our company.
“We were caught completely off guard by the betrayal. They used our documents because Mahlangu had access to them. We were almost ready to begin the actual mining operations; we were only delayed by the 2022 elections, which I believe gave them the opportunity to change the documents into Sterlek’s name.
“Minister Moleko said when he got into office, the documents were already in Sterlek’s names. This made me believe that the papers were forged. I reported the matter to DCEO,” he noted.
Moleko suspended Sterlek’s prospecting license in a letter dated August 22 this year. However, the company has continued with its operations.
According to Moleko, the decision was prompted by community concerns.
“I had no option but to suspend in the public interest and with immediate effect, pending community consultations, Sterlek Mining Pty (Ltd) Prospecting license in accordance with section 22 (1) of the Mines and Minerals Act 2005,” Moleko said in his letter.
Moleko told this publication on Wednesday that the ministry was aware that Sterlek was still continuing with operations despite the suspension.
“We are in consultations with the various stakeholders in order to reach a decision going forward,” he stated.
This publication also has a copy of a responding letter signed by Sterlek chief executive officer, Teboho Thakholi. But, Thakholi denied any knowledge of these letters.
He said the only letter he wrote was seeking clarity from Moleko, following rumours of the allegations from the community, that his license was suspended.
He cited there was miscommunication and misinformation to the community by Chief Lelingoana, especially those who were not part of the project since the beginning.
Thakholi also accused Chief Lelingoana of having a conflict of interest in the particular mining project.
He said Sterlek conducted the required community consultations in accordance with the environmental clearance process and followed all legal and procedural frameworks.
“Our consultations with the community were comprehensive and inclusive as we are committed to engaging them before initiating our operations.
“Contrary to the claims made, we engaged with local leaders and community members at various stages through certain individuals, including Ntate Lelingoana. Even the letter of introduction was notifying him that Sterlek would start prospecting was communicated to him. I am surprised that today he is denying us. I think he might be having a conflict of interest in this matter.
“Ntate Lelingoana has been involved in efforts to instigate unrest within the community. He has been openly mobilising certain factions of the community to resist our operations, going as far as using public gatherings, such as funerals and traditional community gatherings to spread propaganda about Sterlek. He even further went on to misinform the community that the company’s prospecting license was suspended, which is wholly untrue,” Thakholi alleged.
He added: “At some point last month, we were told by some community members that minister Moleko also announced during a public gathering in Nqechane that he had suspended our prospecting license.
“We understand the minister acted with genuine concerns and since the matter is still before his office, we trust he will assist us to resolve the matter.”
He further disputed allegations that Sterlek worked with Qoo and Tjatja to hijack the mining operation and fraudulently acquired a prospecting license from the department of mining after paying a M500 000 bribe.
“When that area was declared vacant, five companies had applied for the environmental clearance and prospecting licenses. Based on its presentation and submissions, Sterlek acquired the license,” Thakholi pointed out.
Chief Lelingoana noted that the community were adamant that they needed Batho Pele to continue with the mining process, not Sterlek, citing it did not follow proper procedures.
