MASERU-Tensions ran high in Parliament this week when the Public Accounts Committee (PAC) called Teboho Kobeli, Executive Director of Duty-Free Sourcing Company, to order after he appeared reluctant to cooperate during questioning.
The incident unfolded during the Committee’s sitting as Kobeli, who also serves as the company’s majority shareholder, hesitated to share serious financial details requested by the Committee. He claimed he was not bound to provide certain information and that he had attended the meeting unprepared, saying he was unsure what he had been called for.
His response, however, did not sit well with PAC Chairperson ‘Machabana Lemphane Letsie, who firmly reminded him that appearing before Parliament is a matter of law and accountability. “You are bound to cooperate. This is a Parliamentary Committee, not a private meeting,” she told him. “We expect full disclosure from anyone entrusted with public resources or transactions involving state institutions.”
The Committee pressed Kobeli to explain key financial issues surrounding his company’s dealings with the Lesotho National Development Corporation (LNDC). In particular, PAC demanded clarity on how much money he personally used to purchase shares in Duty-Free Sourcing Company and when the company intends to repay its M6.5 million debt to LNDC.
The debt, the Committee noted, carries 5 percent interest and an additional 2.5 percent penalty for default, costs that have continued to accumulate over time. Letsie stressed that the Committee’s goal is to ensure accountability for public funds and transparency in all transactions involving state-linked entities. “We cannot overlook a case where public money is tied up in private business dealings without a clear repayment plan,” she said.
As the exchanges grew tense, the PAC Chairperson reminded Kobeli that his company benefited from financial assistance connected to a public institution, making it subject to parliamentary oversight. She further cautioned him that refusing to cooperate or withholding information could be interpreted as barrier of parliamentary work, an act that carries serious implications.
“When public money is involved, there is no room for secrecy,” she said. “You must account for every loti, every transaction, because taxpayers have a right to know how their money is being used.”
Other PAC members joined in, expressing frustration at Kobeli’s lack of preparedness and his reluctance to provide straightforward answers. One member described his conduct as “disrespectful to Parliament”, while another urged him to take the Committee seriously and submit a detailed financial report. The Committee emphasized that it expects Duty-Free Sourcing Company to present clear records of its financial dealings with LNDC, including the repayment timeline, the source of the company’s capital, and the current status of the outstanding debt.
Letsie further directed that Kobeli submit all requested documentation before the next meeting to avoid further summons or possible sanctions. The PAC’s encounter with Duty-Free Sourcing Company adds to a growing list of cases where state-linked entities and private partners are being called to account for their financial conduct.
The Duty-Free Sourcing Company case, in particular, has raised eyebrows due to the size of the debt and the slow pace of repayment. The Committee’s involvement aims to ensure that no public funds are lost through negligence, poor management, or lack of oversight. Letsie closed the session with a stern reminder that all individuals and entities who appear before the PAC are legally obligated to cooperate.
“This Committee does not operate on assumptions or excuses,” she said. “We demand facts, figures, and accountability. That is the only way to protect the interests of Basotho and ensure that public money serves the people, not private pockets.”
