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Jan. 24, 2019

SECHABA MATATIELE

2 min read

Former LEC boss accused of fraud

Former LEC boss accused of fraud

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Former Lesotho Electricity Company (LEC) boss Mbele Hoohlo was this week in the docket at the Maseru Magistrate Court accused of fraud. According to the evidence given by former chairman of LEC board Batalatsang Kanetsi, sometimes in 2015 after the internal audit of LEC account books, it was found that there was irregularities that led the board to suspend financial manager of the power utility parastatal.


He said Hoohlo, who was managing director at that time, was also suspended for failing to execute his responsibility of supervision over the financial manager. He said after seeking the help of foreign forensic, they found that the salary of Hoohlo was too high compared to the salary increments that were written in his contract.

The charge sheet revealed that between April 2012 and June 2013, the accused unlawfully misrepresent to LEC and the energy minister that following the negotiations for salary adjustment for 2013/14 financial year between LEC and National Union of Commerce Catering and Allied Workers (NUCCAW) he was entitled to a salary adjustment with salary increase. The charge stated that his salary increase was 33.72% from his previous basic salary of M70 000 to M93 607 effective from 1st April, 2013.

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Therefore, Kanetsi said the board whose work is to oversee all company’s activities on behalf of a shareholder who is the Government of Lesotho, wrote to the principal secretary of Ministry of Energy and Meteorology who was EM Lesoma at that time to find if there was any approval from the minister of adjustment of managing director’s salary increase and also on the payment of car allowance of managing director net of tax. He said, as he read in court, the response from the principal secretary was ‘the available paper trail at the ministry does not inform of any approval of adjustment of managing director’s salary’ and ‘on the payment of car allowance refer to the context of the employment contract’.

Kanetsi indicated that following the response from the principal secretary the board took Hoohlo to the disciplinary hearing because it alleged that he had increased his own salary by himself. He said the board to which he was a chairman, its powers expired in 2017, while disciplinary was still continuing. The accused is represented by Advocate  Lineo ’Masalome Lephatṧoa while crown is represented by Public Prosecutors Qcinumuzi Tshabalala and ’Mamotloheloa Rabale. The case continues before Magistrate Monyake Hlabanyane.

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