Lesotho Government Moves to Recover Funds from Belo Electrification Project Mismanagement

The Lesotho government is taking steps to recover public funds lost due to alleged irregularities and mismanagement in the Belo electrification project. Minister of Energy and Mining, Lejone Mpotjoane, stated that suspending or dismissing officials involved is not enough without also recovering the lost funds. The government must first determine the extent of the financial damage before deciding on recovery measures. Mpotjoane warned public servants against neglecting their responsibilities, highlighting that failing to execute assigned duties will have consequences.

Principal Secretary in the Ministry of Energy and Mining, Tankiso Phapano, revealed that the ministry has initiated legal proceedings against a previous contractor who received unauthorized payments during the project. A financial reconciliation process is underway to establish the extent of these irregular payments and resulting losses. Some officials who supervised the project have been suspended, while legal actions against others are ongoing. The project's mismanagement has led to repercussions beyond financial losses, particularly delaying employment opportunities for individuals expected to work at the factories.

Phapano noted that the project's delays have resulted in missed opportunities for individuals who would have worked in the factories, something that cannot be recovered. To prevent similar incidents, the ministry is enhancing project monitoring by ensuring officials conduct regular inspections of construction sites to assess progress and workmanship before handing projects over. These inspections will help identify defects early enough to take corrective measures before project completion.

The ministry is also working to recruit more qualified personnel to oversee project quality while transferring technical skills to existing employees. Phapano added that the electrification project has been the main obstacle delaying the operation of the Belo Industrial Estate. Following improvements in the electricity infrastructure, the Prime Minister is expected to officially launch and hand over the factories.

The Belo Substation will receive electricity from two separate supply routes – one from Khukhune and another from Hlotse. This setup is designed to provide an alternative electricity supply should one of the lines experience technical issues, ensuring reliable power for the factories. However, Phapano noted that the Khukhune-to-Mopeli section is still incomplete, with inspections ongoing after the current contractor identified defects related to work previously done by the first contractor.

Phapano revealed plans for an indoor substation to be constructed at Khukhune to strengthen electricity supply to the industrial estate. He acknowledged that the government is facing financial challenges in completing the Khukhune-Belo line, partly due to losses incurred during the project's implementation. The World Bank, which is financing the electrification project, has expressed dissatisfaction with its execution, particularly regarding unnecessary expenditures incurred.

The Belo Industrial Estate has experienced prolonged delays despite years of construction and government investment. The construction of the industrial estate was officially launched with a sod-turning ceremony in March 2018. Although the factory buildings have been completed for some time, operations have yet to commence. The project has drawn visits from Members of Parliament, parliamentary committees, Cabinet ministers, and other government officials seeking to assess progress and understand the reasons behind the delays.

Key points

• The Lesotho government is working to recover public funds lost due to alleged irregularities and mismanagement in the Belo electrification project.
• The project's mismanagement has led to repercussions beyond financial losses, particularly delaying employment opportunities for individuals expected to work at the factories.
• The ministry is enhancing project monitoring and recruiting more qualified personnel to oversee project quality to prevent similar incidents in the future.