LEC recovers over M3.7 million from electricity fraud scheme

Mohloai Mpesi

THE Lesotho Electricity Company (LEC) has secured commitments from two companies to repay more than M3.7 million they fraudulently obtained from the power utility, the Lesotho Times has established.

The repayments form part of an alleged M81.7 million electricity fraud scheme that investigators believe has been operating since 2015. The scheme was allegedly masterminded by former LEC Sales Agent Officer, Tlotliso Bereng, who is accused of fraudulently loading electricity units for sales agents using the now-defunct postpaid system and sharing the proceeds with them.

According to LEC, the two companies approached the utility seeking leniency and undertaking to repay the money they unlawfully gained.

In mid-May this year, Mr Bereng (50) appeared before the Maseru Magistrates’ Court alongside Nthabiseng Sofe (59), Mapota Letlela (30), Malethosa Ramothello and Muso Mosa (41), facing charges of jointly defrauding the LEC of M26 168 198.96.

He was subsequently slapped with an additional charge in June over the alleged theft of M122 350 from the LEC in connection with Mafeteng-based company, Five Star Temo.

The M26.1 million and M122 350 represent only a fraction of the alleged M81.7 million loss, with investigators expecting to bring additional charges against more suspects as investigations continue. Authorities believe several other sales agents also benefited from the scheme.

According to highly placed sources, Bereng allegedly worked with about nine sales agents and companies, illegally loading electricity units for them through the now-defunct postpaid system at LEC’s expense.

In the latest development, sources close to the investigation said two companies that benefited from the scheme had come forward and expressed willingness to repay the money.

“Some of the sales agents are paying. A number of them have accepted that they were in the wrong and have written letters asking to settle what they owe LEC. So far, two companies have come forward: one has pledged to pay M3.6 million, while the other has undertaken to repay M122 350. They want to clear their debts,” the source said.

Contacted for comment, LEC Stakeholder Relations Manager, Makhetha Motšoari, confirmed the development and appealed to other sales agents implicated in the scheme to come forward voluntarily.

“We appeal to those who have wronged us to contact our police office at LEC. Our offices are open to meet with LEC management. We will look into their cases and resolve them amicably once they come forward, so we strongly encourage them to do so before we come to them. Those who come forward voluntarily are willing to explain what happened, and they are cooperative,” Mr Motšoari said.

He warned that LEC would continue investigating other suspects and pursue criminal prosecution against those who refused to cooperate.

“Apart from that, we will continue to prosecute those unwilling to come to the negotiating table. We are asking members of the public with information regarding criminality, theft or vandalism of LEC property to share that intelligence with us,” he said.

The alleged fraud was uncovered after acting Managing Director Tšeliso Mokela launched an internal campaign to identify financial leakages preventing the utility from becoming profitable. The exercise reportedly exposed widespread corruption involving electricity sales agents and some LEC employees.

The scandal is the latest setback for the power utility, which has been battling severe financial challenges. An external audit submitted to the Ministry of Energy last year found that LEC’s liabilities exceeded its assets by M98.6 million, forcing the cash-strapped parastatal to rely on government bailouts, including a M300 million injection, to continue importing electricity from South Africa’s Eskom and Mozambique’s EDM.

LEC has also reportedly lost close to M1 billion over the past three years, with the losses attributed to governance failures, electricity theft and the long-standing practice of purchasing electricity at a higher cost than the price at which it is sold to consumers.

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