Maseru
The Lesotho Electricity Company (LEC) is once again at the centre of a deepening governance crisis after revelations of unlawful procurement worth over M13 million, and fresh warnings from the Public Accounts Committee (PAC) over suspected obstruction of an ongoing forensic audit.
This week, PAC Chairperson Hon. Machabana Lemphane-Letsie cautioned LEC management against sabotaging the forensic audit by withholding key documents and information. The audit was ordered after mounting concerns over financial mismanagement and alleged irregular interference in LEC’s operations.
“LEC must not sabotage the forensic audit by withholding critical information. This process is essential for uncovering the truth about how this utility has been managed,” Lemphane-Letsie said during this week’s proceedings.
Shocking Procurement Exposed During “Surprise” Inspection
The PAC’s frustration escalated after a surprise inspection of LEC storerooms, where members discovered 3,000 incompatible meters and keypads worth M6 million and nine transformers valued at over M7 million, all allegedly procured without following proper tender procedures.
The committee heard that the meters and keypads, purchased from Landis+Gyr on June 5, 2025, and the transformers, supplied by Power Link Holdings in May, are not compatible with LEC’s existing systems, and remain unused in storage.
LEC’s board commitment to transparency and accountability
On May 06, LEC board of directors reaffirmed commitment to transparency and
accountability through Forensic Audit and Internal Investigation.
The statement read;
The Lesotho Electricity Company (LEC) wishes to inform the public and all stakeholders that the office of the Auditor General will lead the process of implementing forensic audit into the company. This follows the advice of the Board of Directors to have a credible audit in line with the principles of transparency, accountability, and sound corporate governance.
On 7 March 2025, the Board of Directors of LEC passed a resolution to commission an independent forensic audit into the affairs of the Company. This decision followed growing concerns related to procurement processes, financial management, governance structures, and operational inefficiencies. The Boarc viewed this action as necessary and aligned its fiduciary duty to safeguard the integrity and sustainability of the Company. Lo facilitate an objective, independent, and transparent forensic audit process, the Board resolved to place the Managing Director and the entire executive management team on temporary suspension for a period of three (3) months, effective from 12 March 2025. I his temporary measure was adopted to ensure that the forensic process would be free of interference and would proceed with the full cooperation of all relevant stakeholders.
In parallel, and in fulfilment of its own governance obligations, the Board is undertaking a complementary internal investigation. This internal process wil focus on strengthening internal accountability and is being managed within existing governance structures. The LEC Board of Directors assures all stakeholders, customers, employees, development partners, and the public that it remains firmly committed to the principles of transparency, clean governance, and institutional reform. Work in-progress will be shared periodically on both forensic audit and internal review initiatives.
