Corruption stalks LSI initiative

TEBOHO MOLEFI KHATEBE and MOTSAMAI MOKOTJO

MASERU – The National Assembly is suspicious of the motives behind the awarding of contract to a Chinese firm for Lesotho Standards Institution (LSI) building by the Ministry of Trade.

It’s Economic Cluster and Development Chairperson, Sello Hakane told Public Eye that it’s astounding since they were informed that the African Development Bank (AfDB) not government would fund LSI project located at Ha Tikoe on the outskirts of Maseru.  

“I can confirm that on this week it came to attention that funding was initially was supposed to be provided by AfDB not government,” Hakane, said, adding, “We need to conduct a site-visit.”

Hakane was astounded that the contract had already been awarded without a feasibility study and Environmental Impact Assessment thus “we need to investigate once we are done working on the budget.” 

Investigations by this paper have revealed that a delegation of AfDB went on a site-visit to find that a Chinese firm has already started operations.

“The intention by civil servants was and still is to use government funds instead of a loan from AfDB since theirs is to get easy access to the money via tenders for the project,” a source with intimate knowledge of deal told this paper.

Last week, in her 2025/2026 budget speech Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane mentioned that in a bid “to improve market access, the Lesotho Standards Institution (LSI) will be operationalized to handle standards development, testing, and certification. Construction of LSI facilities will begin in the upcoming financial year.”

Subsequently, the Ministry’s Procurement Director, Seriti Khabisi was suspended for raising the flag insisting that her office was not consulted according to those privy to the matter.

Khabisi confirmed to this paper that indeed she was on suspension but has since launched a case before the courts.

When contacted the ministry’s Principal Secretary (PS), Palesa Matobako said the deal was above-board.

“The tender was even investigated by DCEO (Directorate on Corruption and Economic Offences) which indicated that there was no foul-play in the awarding of the tender,” Matobako said.

Matobako confirmed that Khabisi asked the anti-corruption agency to investigate the tender which “was cleared as legal procedures were followed…she (Khabisi) has an axe to grind.”

“She has been suspended for buying phones and placing adverts in newspapers without following proper procedures not what is being peddled,” the PS said. 

When contacted, Khabisi told this publication that she cannot speak on the matter since she has instituted a case against the ministry in the courts.

However, this paper was informed that one, Francis Sefali forged ahead despite reservations about the deal.  

The current chief accounting officer, Matobako simply ignored the red flags notwithstanding issues raised.

This is against articles published by this publication indicating that government is aware of the Lesotho Promotion and Marketing Services (LPMS) building located in the Maseru Industrial Area, where LSI equipment is stored.

The Ministry of Trade was denied to access their equipment by infamous Yan “John” Xie on account that the government owes him, according to the PS.   

According to her, before Parliament’s Economic Cluster, they(ministry) then went for inspection with Revenue Services Lesotho (RSL) and the marketing department staff where they subsequently met John who said he has a signed sub-lease for the building with a former minister.

She indicated that there’s a joint venture agreement with Africomforter where the ministry bought machines for manufacturing duvet covers which are placed in LPMS building in which Xie was allowed approval to use the machines

“John said he was not going to grant us permission to the building because the government owes him, although he did not disclose the amount”, she said, further narrating, “After that incident, we concluded with RSL to open a case in court because what we need is our property and a month after, we requested to have access to at least one machine to continue work and we were granted only that one machine.”

She highlighted that to date, they still have not been assisted and even December last year, Chief Legal Officer had made a follow-up on the case.