- Refutes ‘claims’ his Cell Power owes LEC over M1 million
- Blames discrepancy on LEC’s “flawed systems”
Mohloai Mpesi
LIMPHO Tau, Minister in the Prime Minister’s Office, has defended his business dealings with the state-owned Lesotho Electricity Company (LEC), despite a potential conflict of interest.
This comes after it was revealed during a Public Accounts Committee (PAC) grilling of the LEC, that Mr Tau’s firm, Cell Power, owes the LEC M1.1 million.
While Mr Tau acknowledged potential conflict of interest in his company’s dealings with the LEC in an exclusive interview with the Lesotho Times this week, he contends that Cell Power is a company he founded in 2016, long before venturing into politics.
Thus, he could not just shut down his lifetime investment upon assuming his ministerial position in 2023, for a political job that is not only temporary but “from which I could be fired tomorrow”.
Mr Tau argued he could not risk his lifetime investment for a temporary ministerial position that could end at any time.
“I have been doing business with LEC for a long time. The work of a minister is temporary, so why should I stop my business just because I’m a minister now?” Mr Tau asked. “The ministerial position can come and go, but my company is a more sustainable investment.”
When asked if it was appropriate for a minister to do business with a state-owned entity, Mr Tau responded that no law prohibits it, as he started the company before entering politics.
“The company and my role as a minister are separate entities,” Mr Tau said.
Mr Tau acknowledged the potential for conflict of interest but insisted it did not prevent him from running the business.
Mr Tau also clarified that he plays a minor oversight role in the company’s operations, which are primarily managed by his staff and two of his children. He emphasized that Cell Power is an independent entity and should not be linked to his political office as that would be unfair.
“This company is my legacy, which I intend to pass down to my children,” Mr Tau added.
The minister also argued that his company did not owe the LEC the claimed amount.
The controversy centres around an internal audit report released by LEC’s Head of Internal Audit, which claimed that Cell Power is part of a group of about 18 companies collectively owing over M1.8 million to the parastatal for electricity sales.
However, Mr Tau insists that a comprehensive investigation would have revealed that the discrepancies stem from LEC’s flawed financial systems rather than any wrongdoing by Cell Power.
According to an internal audit report submitted before the PAC last Wednesday, Cell Power appears to owe M1.1 million, with LEC having successfully recovered M125,000, leaving an outstanding balance of M980,000.
Correspondence seen by the Lesotho Times shows that the companies have been haggling over what they owe each other.
On April 10, 2024, the Managing Director of LEC, now suspended, Mohlomi Seitlheko wrote to Cell Power, seeking an inspection of its financial records to reconcile the accounts.
“The objective of the exercise is to reconcile our records accordingly,” the letter stated, proposing a timeline for this inspection.
Similarly, the Acting Managing Director, Nathaniel Maphathe wrote to Cell Power on April 15, 2025, informing Cell Power of an untraceable payment amounting to M752,280.95, requesting proof of payment or an agreement on how to settle the balance by May 9, 2025.
In its response dated May 8, Cell Power highlighted issues of duplicated entries in LEC’s records.
The company argued that the total amount owed was inflated due to these errors, citing a lack of proper verification in LEC’s accounting practices.
Cell Power’s proposal entailed paying the duplicated amounts in 36 equal instalments starting in June 2025.
Alternatively, proposing setting off the owed amount against M722, 100 the LEC owes to Cell Power.
Furthermore, the company asserted that it had uncovered payments amounting to M722,100 worth of electricity units that had not been credited to Cell Power’s account, despite being paid for by customers.
It provided a breakdown of the payments. Ntṧiuoa Moshoeshoe, Cell Power’s Manager, asked the LEC to process these amounts and offset them against the claimed debt. The offset would have only left a balance of M30, 180. 95.
“Please verify and kindly advise us at least by Friday, May 23, 2025, as to when these amounts will be processed or offset against what we owe to LEC,” she wrote in a letter to LEC.
Ms Moshoeshoe noted instances where payments for electricity units were recorded multiple times, creating an appearance of inflated debts.
This point was corroborated by LEC’s Finance Manager, Sello Mothae, last Tuesday, who acknowledged to the PAC that certain duplications had been reversed, highlighting systemic flaws that continue to impact the accuracy of the LEC’s financial reporting.
During that PAC session, Democratic Congress (DC) legislator Lephoi Makara questioned the rationale behind LEC’s continued reliance on outdated systems, prompting calls for a comprehensive review of LEC’s operational protocols.
Minister Tau also expressed deep concern about how these allegations have tarnished Cell Power’s reputation.
“Our customers trust us to deliver electricity reliably. Misrepresentations like these erode that trust,” he said, adding that the legacy of his company is of paramount importance.
“While we have responded to the LEC on the 8th of May 2025, LEC appeared before the PAC recently, leaving out the information we gave them.
“…..Why do they still go before the PAC with the old records and fail to bring to the attention of the PAC the new developments?” he asked.
He further criticized what he described as the LEC’s inconsistent handling of financial records, arguing that such issues do not reflect the reality of Cell Power’s operations.
“As Cell Power navigates this challenging landscape, the implications for customer confidence and operational integrity loom large. The outcome of ongoing reconciliations between Cell Power and LEC will be crucial in determining the future of both the company and its relationship with the power utility,” Mr Tau said.
Conflict of interest pattern
Mr Tau is but one of ministers in Prime Minister Sam Matekane’s coalition government, who have been accused of conflicts of interest.
In 2024, the Minister of Local Government, Chieftainship, Home Affairs and Police, Lebona Lephema, faced scrutiny after acquiring the Mothae Diamond mine, in which the government holds a stake.
Compounding the issue, Lephema was given a competitive advantage over potential buyers, as the opportunity was never publicly advertised.
Lephema also attempted to acquire the state-owned brick company Loti Brick, but parliament ordered the sale to be halted.
Additionally, the Minister of Public Works and Transport, Matjato Moteane, has been accused of funnelling business to a company he has close ties to – Khatleli-Tomane Architects, formerly Khatleli-Tomane-Moteane Architects. This company has been subcontracted for a major M184 million project to rehabilitate Moshoeshoe I International Airport. That project too has been mired in controversy and allegations of corruption.
The Public Accounts Committee has even recommended in a recent report that Moteane be dismissed from his ministerial post, citing the conflict of interest allegations among other grounds.
This pattern of ministers leveraging their positions for personal or corporate gain highlights the need for greater accountability and transparency within Prime Minister Matekane’s administration.
Legislation
In November 2024, the government rejected a proposed Conflict of Interest Bill that sought to prohibit legislators, government officials, and cabinet ministers from conducting business with the state.
The Bill was grounded in Sections 78, 81, and other provisions of the 1993 Lesotho Constitution, as outlined in Standing Order No. 52(1).
However, government-aligned legislators ultimately voted down the private member’s Bill on November 1, 2024. Nineteen MPs voted against it, with only 12 in favour and 2 undecided.
The Bill had been proposed by legislators Teboho Mojapela, Lekhetho Rakuoane, and Dr Ts’epo Lipholo, who later filed a court challenge against the parliamentary vote.
The High Court has since ruled that the case is not urgent and should follow normal court procedures.
Since Premier Matekane’s administration took office in October 2022, there have been reports that members of parliament have been benefiting from government contracts for patronage purposes.
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