Leader of the Basotho National Party (BNP) and Member of Parliament, Hon. Machesetsa Mofomobe, has written to the Minister of Energy, Hon. Mohlomi Moleko, raising serious concerns about what he terms a “breach of corporate governance” at the Lesotho Electricity Company (LEC).
In a strongly worded letter dated 13 October 2025, Mofomobe accuses the LEC board of violating the Public Enterprises Act of 2023, the Companies Act of 2011, and the OECD Guidelines on Corporate Governance of State-Owned Enterprises. His letter highlights that a non-executive board member had been appointed as Acting Managing Director and, after the expiry of that acting appointment, reverted to their board position.
Mofomobe argues that this arrangement compromises the independence and objectivity required of state-owned enterprise boards. “This development raises serious concerns of corporate governance irregularity,” he wrote, insisting that such practices blur the separation between management and oversight functions.
Quoting the Public Enterprises Act, Mofomobe reminded the minister that Section 21(1) prohibits commissioners or board members from taking part in the day-to-day administration of public enterprises. The BNP leader said this provision exists to ensure that management and oversight remain distinct and that board members do not exercise executive powers.
He further cited the Companies Act, which obliges directors to act with due care and avoid conflicts of interest, noting that a board member’s temporary assumption of an executive role, followed by their return to the board without procedural safeguards, may constitute a breach of fiduciary duty.
Mofomobe also referenced the OECD Guidelines, which warn that former executives should not immediately return to board positions without a cooling-off period, as this undermines the board’s independence and objectivity.
The BNP leader urged the Ministry of Energy to intervene swiftly and reverse what he described as an “irregular arrangement” to restore public confidence in LEC’s management. He warned that if the matter remains unresolved, he will seek legal remedies to defend good governance and the rule of law.
“This issue must be treated with the urgency and seriousness it deserves,” he concluded.
The letter was also copied to the Public Accounts Committee and the Lesotho Institute of Directors.
If left unaddressed, this controversy could deepen concerns about governance standards across Lesotho’s state-owned enterprises, many of which are already under scrutiny for lax oversight and political interference.
