Moteane’s triangle of control probed
Minister faces mounting conflict of interest allegations over M80m Vodacom Park loan
TEBOHO KHATEBE MOLEFI and
MOTSAMAI MOKOTJO
MASERU – Public works minister, Neo Matjato Moteane, is embroiled in serious conflict of interest allegations after Public Eye investigations reveal he simultaneously chaired all three entities involved in approving Nedbank Lesotho’s M80 million loan to Sekhametsi Investment Consortium (SIC) for Vodacom Park construction.
According to findings, Moteane’s triangle of control spanned three companies when the M80 million Sekhametsi load from Nedbank was pushed through – between 2010 and 2017 he served as chairman of Nedbank Lesotho (lender), chairman of Vodacom Lesotho (tenant/beneficiary) and chairman of Sekhametsi Investment Consortium (SIC) (borrower/developer).
This unprecedented triple-chairmanship placed Moteane at the helm of both the entity requesting the loan (SIC), the bank approving it (Nedbank), and the company whose tenancy secured it (Vodacom). Corporate governance experts condemn such overlapping control as a textbook conflict of interest.
Two former Nedbank board members independently allege Moteane pressured the board to approve SIC’s loan despite governance concerns.
One stated: “There was immense pressure from him…We ultimately bowed because he is a powerful figure with substantial clout.”
When asked if Moteane disclosed his SIC chairmanship upon joining Nedbank’s board, the source countered that “Moteane is being economical with the truth. . . Corporate governance is clearly an alien concept to him.”
A second source accused Moteane of using “bullying tactics to get the loan,” adding “we resisted initially. . . but even without sound financial rationale, we gave in.”
However, the minister’s contradictory defence is heated. Moteane denies conflict of interest, claiming that the loan was approved before he joined Nedbank’s board, that he disclosed his SIC ties upon joining Nedbank and that the courts will soon vindicate him regarding ongoing litigation by SIC’s former board – who allege he was conflicted.
He grew combative when questioned, telling Public Eye: “I am tired of people who listen to such information… You are starting this debate to misquote me again.”
He refused to address specifics, citing sub judice rules.
Key contradictions remain, and Moteane’s timeline is challenged by his confirmed 2010 to 2017 chairmanship of Nedbank alongside SIC and Vodacom, whistle-blowers also directly contradict his disclosure claims.
His architectural firm (Khatleli Tomane Moteane Architects), where he was a shareholder, designed Vodacom Park – raising further conflict concerns despite his claim of shareholder approval.
“This represents a catastrophic failure of corporate governance,” said an analyst requesting anonymity due to Moteane’s influence.
“Chairing all three entities dissolves essential arm’s-length relationships. The allegations of pressure, if proven, suggest abuse of power to circumvent fiduciary duties.”
The completed Vodacom Park stands as a physical testament to a deal now shrouded in allegations of coercion and ethical breaches. With court proceedings ongoing and ministerial credibility at stake, calls for an independent probe into the loan approval process are mounting.
These allegations of conflict of interest and misconduct involving Minister Moteane are intensifying, placing his position in cabinet under severe pressure and raising questions about adherence to corporate governance standards.
He faces these fresh allegations while still being grilled over the controversy centres on the M184 million refurbishment tender for Moshoeshoe I International Airport. Minister Moteane faces claims that his private company improperly participated in the tender process, constituting a clear conflict of interest.
The allegations directly contradict the principles enshrined in the Mohlomi Corporate Governance Code. The Code explicitly states: “The board should manage conflicts of interests within organisations (while also) recommending the development of policy and guidelines in line with the laws and regulations.”
The situation highlights a potential failure in governance oversight concerning conflicts at the highest levels.
Minister Moteane’s professional conduct continues to be under intense scrutiny. A growing chorus, including the influential Public Accounts Committee (PAC), is calling for his removal from cabinet.
The PAC has formally recommended his dismissal.
Earlier this month, Minister Moteane confirmed to this publication that his office has submitted documentation related to the airport tender to the Directorate on Corruption and Economic Offences (DCEO).
“My office has been asked to provide files to the anti-graft authority,” Moteane stated.
When questioned about his political future and the possibility of being fired by Prime Minister Ntsokoane Matekane, Moteane offered a resigned response.
“The Prime Minister will make whatever decision he deems appropriate, and that will be fine,” he said.
Pressed further on the potential for his removal, he added, “Of course I mind being fired. Do I think I am going to be fired? I don’t know.”
The Moshoeshoe I International Airport, a crucial economic gateway for Lesotho, is undergoing a multi-million Maloti rehabilitation project aimed at modernizing its facilities and boosting regional connectivity.
At the heart of the controversy is the award of a portion of the lucrative tender – valued at M100 million – to Khatleli Tomane Architects (PTY) LTD, a company Moteane co-founded.
Critics allege that Moteane has benefited from the contract, despite his claim to have severed ties with the firm.
“I have resigned from the company,” Moteane told Public Eye, dismissing allegations as a mere public “perception.”
He further clarified: “The fact remains that I have resigned, and I was not obligated to go around ensuring everyone knows my personal business. We made a formal declaration confirming my legal departure from the company.”
Records from the One-Stop Business Facilitation Centre (OBFC) corroborate Moteane’s resignation claim, indicating that he was a shareholder until November 1, 2022. The firm, previously known as HMH Chartered Architects and Planners and later Khatleli Tomane Moteane Architects, underscores his past involvement.
The controversy deepened then when the PAC interrogated the ministry’s principal secretary, Tšepang Koele, and other ministry officials about the tender process. Koele’s failure to provide satisfactory answers led to his arrest, along with other officials.
PAC Chairperson, ‘Machabana Lemphane Letsie, emphasized the importance of transparency, invoking the Parliamentary Powers and Privileges Act to highlight the legal obligations of those appearing before the committee.
“The public deserves transparency,” Lemphane Letsie declared, underscoring the seriousness of the allegations and the potential implications for governance and accountability.
The DCEO investigation into the Moshoeshoe I Airport tender, specifically examining Moteane’s alleged conflict of interest and misconduct, is ongoing.
The outcome will be pivotal, not only for Moteane’s political career but also for public confidence in governance and tender processes involving significant public funds.
