Lesotho Electricity Company (LEC)
By Neo Mofokeng
The Lesotho Electricity Company (LEC) has suspended its entire executive management team for three months, effective from 12 March 2025, to facilitate an independent forensic audit led by the Auditor General’s office. This decisive action follows mounting concerns over procurement processes, financial management, governance structures, and operational inefficiencies within the state-owned utility.
Background and Rationale
On 7 March 2025, LEC’s Board of Directors passed a resolution to commission an independent forensic audit into the company’s affairs. This decision aligns with the Board’s fiduciary duty to uphold transparency, accountability, and sound corporate governance. Stakeholder Relations Manager, Advocate Makhetha Mots’oari, emphasized the Board’s commitment to these principles, stating that the audit aims to safeguard the integrity and sustainability of the company.
To ensure the audit’s objectivity and independence, the Board resolved to place Managing Director Mohlomi Seitlheko and the entire executive management team on temporary suspension. This measure is intended to prevent any potential interference with the audit process and to facilitate full cooperation from all relevant stakeholders. 
Scope of the Forensic Audit
The forensic audit, to be conducted by the Auditor General’s office, will scrutinize various aspects of LEC’s operations, including:
• Procurement processes
• Financial management practices
• Governance structures
• Operational efficiencies
This comprehensive review aims to identify any irregularities or malpractices that may have compromised the company’s performance and financial health.
Internal Investigation
In parallel with the forensic audit, the Board is undertaking a complementary internal investigation focusing on strengthening internal accountability. This process is being managed within existing governance structures and is part of the Board’s broader efforts to reform and enhance the company’s operational integrity.
Financial Challenges and Government Intervention
LEC has been grappling with severe financial challenges, with current liabilities exceeding assets by M98.6 million. An external audit report submitted to the Ministry of Energy in January 2025 revealed a decline in cash reserves by M145.8 million. The company has been unable to purchase electricity for distribution, posing a significant risk to consumers and the economy. 
Acting Minister of Energy, Mohlomi Moleko, attributed LEC’s financial difficulties to alleged gross financial mismanagement, governance failures, and low energy tariffs. He disclosed that LEC is now reliant on government bailouts, with a recent injection of M300 million to enable the company to continue purchasing electricity. 
Leadership Changes
Following the suspension of the executive team, LEC Board Chairperson Ntsie Maphathe has been appointed as the Acting Managing Director to ensure continuity in leadership and smooth operations during this period. Maphathe has vacated his position as Chairman of the Board upon assuming this role.
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