A former principal secretary (PS) in the ministry of energy is appearing in court alongside 13 other individuals and companies, charged with fraud, corruption, and money laundering involving at least M128 million.
According to the Directorate on Corruption and Economic Offences (DCEO), a total M128,718,591,89 was disbursed to PHAKS Joint Venture – comprising three companies namely; PHAKS Electrical and Construction (Pty) Ltd and One Power Projects and TM2 Construction and Civil (Pty) Ltd.
The funds were earmarked for designing and constructing the Belo 33/11 KV substation and 33 KV Line in Butha Buthe district in 2021. However, One Power Projects later withdrew from the joint venture and was consequently paid M14,959,43 for expenses incurred during its involvement in the venture.
The DCEO says the withdrawal of the company adversely affected the legal status of the joint venture as it rendered it dissolved and such change was never formally disclosed to the ministry.
This was contrary to the provisions of the contract between the joint venture and the ministry, the anti-corruption body says.
DCEO further claims the accused made the ministry of energy to fraudulently pay about M128 million to PHAKS Joint Venture for incomplete works.
The former PS, Themba Sopeng, and Mathapelo Keke Silase, the coordinator of the Renewable Energy and Energy Access Project (LREEAP), are among the accused. The accused are said to have acted in cahoots to defraud the ministry of energy in order to benefit unduly from funds that were intended for the project.
Sopeng was seized with the authority of establishing a tender panel and approving claims as the chief executive officer in the ministry.
According to court documents, investigations by the DCEO in June 2021 revealed that, in or around March 2020, there were irregularities in the tender process for the Belo project.
Silase, Sopeng and some officials are said to have manipulated the tender process to favour the PHAKS Joint Venture. The latter allegedly made false representations to the ministry, asserting that the tender was awarded to PHAKS Joint Venture for M86,619,799 – all while bypassing proper procurement protocols.
Further, officials in charge of LREEAP, including a procurement specialist, allegedly failed to forward the evaluation report that recommended awarding the tender to AAR ESS Exim Joint Venture for M65 million, instead favouring PHAKS Joint Venture. LREEAP was composed of four components – design and construction of Belo 33/1 1 KV Substation and 33 KV Line, which is the subject of the charges.
On the money laundering charge, accused 1 to accused 13, are said to have contravened Section 25 of the Money Laundering and Proceeds of Crime Act of 2008 as amended, read with Section 26 (1) of the Penal Act of 2010
“. . . in that during the period 2021/2023, and at or near the offices of LREEAP, the said accused sharing a common intention and in furtherance of a common purpose, did wrongfully end unlawfully acquire, possess, transfer and/or use money in the amount M128 million knowing and/or having reason to believe such monies were derived and/or acquired directly from acts and/or omissions which constitute a serious offence to wit; corruption,” the charge sheet says.
Sopeng is also charged with contravening section 21(3)(B) read with Section 32 of the Prevention of Corruption and Economic Offences Act of 1999 as amended in that around June 2021, he unlawfully and intentionally abused the functions or positions of his office as the chief accounting officer in the ministry by failing to establish a tender panel for the award tender of tender in the design and construction of 33/11KV Substation and Line. He was also accused of obtaining undue advantage for PHAKS Joint Venture.
The other accused, Motsekuoa Phalole and Teboho Mokhethi, Makhabane Leluma and Binare Ramochela are directors of PHAKS Joint Venture and TM2 Construction and Civil (Pty) Ltd. Mookho Pule, Mojaki Lesenyeho, Neo John Lekhotla, Mod Snack Bar, Solar Invest, TM2 Construction and Civil (Pty) Ltd, Phaks Electrical and Construction (Pty) Ltd and PHAKS Joint Venture also jointly accused of unduly befitting from the proceeds of fraud, committed in respect of the joint venture.
On March 24, 2023, additional charges were laid against three of the accused for colluding to misrepresent the validity of claims amounting to M10 million submitted by PHAKS Joint Venture to the Lesotho Electricity Company. The alleged scheme involved either falsely confirming the legitimacy of the claims or concealing that they were under scrutiny.
The accused appeared the High Court on 23 January 2025.
They were released on M10,000 bail each and security of M100,000. They were also ordered to attend all remand hearings and trial dates until the case if finalised. They were further order not to interfere with state witnesses, and inform the investigative officer whenever they leave the country.
The case was remanded to 3 March 2025.
In related developments, the multi-million Ha-Belo Industrial Estate project, which commenced in January 2018, is expected to employ approximately 14,500 people once fully operational.
Although the property has not yet been officially handed over to the Lesotho National Development Corporation (LNDC), the planned estate will eventually feature 51 factory shells.
An economic boom was anticipated as the Ha Belo Industrial Estate neared completion, with residents of Ha Belo eagerly awaiting the opening of the Ha Belo Industrial Estate in 2022, which many believed would usher in life-changing opportunities for the community.
They also saw it as a catalyst for economic growth and improved living standards in the region.
Local businesswoman Mathandeka Mathebula – who operates a tavern in Ha Belo – shared her excitement with theReporter.
“I cannot fully express the excitement that the imminent opening of factories has brought to our area. With more patrons, I expect my alcohol business to flourish, allowing me to grow and even expand further,” she said.
Mathebula, who earned about M7,000 monthly during winter months – when business was slower compared to summer’s M12,000 – anticipated that the increased activity could potentially double her profits. However, she had noted a persistent challenge: “Unruly customers who become violent when intoxicated force me to close early or even call the police. In preparation for the business boom, I plan to enforce tighter security measures, including body searches for dangerous weapons on suspicious clients.”
Anticipation was not limited to job seekers. By 2022, rental houses in Ha-Belo had mushroomed in preparation for an expected influx of new residents.
A local resident constructing rental homes near the industrial estate, Mohau Motiea, said, “When construction of the factory shells began, I saw a business opportunity and grabbed it. I’m optimistic that by September, my two-roomed houses will be ready. I plan to charge M800 per unit, ensuring that new factory workers won’t have to travel long distances for accommodation.”
Motiea remains confident about the project’s impact. “The Ha-Belo factories will open many job opportunities, boosting the Botha-Bothe economy and benefiting numerous communities around here,” he concluded.
Instead, it has now become a target of vandalism by thieves. Police have received reports of theft of materials like fences, poles, corrugated iron sheets, tiles and doors.
