LEC Board regains fiscal sanity
Slashes bloated allowances in bold strike move
TEBOHO KHATEBE MOLEFI and
MOTSAMAI MOKOTJO
MASERU – In a decisive move hailed as a critical first step toward accountability, the embattled power utility’s board has reverted acting managers’ perks to 10 percent, cutting costs and signalling a new era of discipline amidst financial chaos and public fury.
In this resounding victory for fiscal responsibility and public trust, the board of the Lesotho Electricity Company (LEC) has taken a courageous and long-overdue stand, voting to dramatically slash the exorbitant allowances granted to its acting managers.
This bold decision to revert from a contentious 100 percent entitlement back to the original 10 percent authorised policy is a powerful signal that the utility is finally confronting the financial extravagance that has pushed it to the brink of collapse.
This move, disclosed by Acting Managing Director, Nathaniel Maphathe, is not merely a cost-cutting measure.
It is a symbolic rupture from a past mired in allegations of corruption, operational inefficiency and a blatant disregard for the nation which has borne the brunt of soaring electricity prices and relentless blackouts.
It is a move that the public has been desperately waiting for, and sets a vital precedent for the difficult reforms that must follow.
The decision emerges from a cauldron of financial turmoil.
The LEC, mirroring the struggles of regional utilities but exacerbated by profound internal failures, is teetering on the edge of insolvency.
For years, the sight of utility managers enjoying lavish perks while customers struggled with unreliable power and rising tariffs has been a source of palpable public outrage. The board’s action directly addresses one of the most visible symbols of this inequity.
Maphathe confirmed the pivotal change in an interview, framing it as a cornerstone of a desperate strategy to staunch the financial bleeding.
“The current policy dictates there must be a marked difference in grades when someone is acting,” Maphathe stated, illuminating a long-standing structural flaw that bred confusion and inefficiency.
“To correct this anomaly, we need to revise our structure and curb costs.”
He revealed that a resolution was passed last month to reinstate the 10 percent policy originally established in 2015, effectively ending a period of unjustifiable generosity that strained the company’s fragile finances.
This reversal cuts to the heart of a bitter public sentiment regarding the generous benefits afforded to LEC staff, particularly entitlements like free electricity – a perk many believe insulates employees from the very economic realities their customers face daily.
While Maphathe defended such benefits, arguing, “Instead of handing out money, we should focus on producing what we need,” his justification has done little to quell the skepticism of citizens who juggle rising costs while perceiving preferential treatment for utility personnel.
The board’s brave decision stands in stark contrast to the alarming portrait of administrative chaos revealed by recent internal audits.
These reports escalate grave concerns about LEC’s governance and financial management capabilities.
Thato Matsoso, the Head of Internal Audit, reported an alarming failure to comply with the fundamental obligation of remitting customer and rural electrification levies to the Lesotho Electricity and Water Authority (LEWA).
This debt, mandated by the Lesotho Electricity Authority Act, has now ballooned to an astonishing M108 million.
The exhaustive 27-page audit submitted by Matsoso details a cascade of failures that threaten to destabilize LEC’s operations entirely.
It highlights chronic delays in reporting critical data, the submission of poor-quality information to regulators, neglected obligations to pioneer developers, and a startling absence of any coherent strategy to improve the company’s financial health.
Each deficiency compounds the operational risks and further erodes the company’s reputation and the public’s trust.
Compounding these internal failures is the disruptive impact of frequent political interference. The audit outlines how constant government changes have forced LEC to reinvent itself repeatedly, with two new boards appointed within just two years.
Khotso Motšoari, the utility’s stakeholder manager, openly criticized this political influence, stating that these constant shifts are directly correlated to the company’s current predicament of confusion and mismanagement.
In light of public concerns over rising electricity prices, Maphathe pointed to external suppliers like Eskom and Electricidade de Moçambique, attributing the increases to their price hikes. He outlined future strategic plans, including an ambitious vision for a 275-kilovolt line from Bloemfontein, South Africa, to Lesotho, which promises wholesale electricity prices. However, this project remains on a drawn-out timeline, offering no immediate relief.
Meanwhile, current government policies further exacerbate the company’s challenges.
Maphathe explained one critical example: “For instance, the actual cost to connect a service within 50 meters is M10 000, but customers are only charged M2 000; the shortfall is covered by our company.”
Such policies, while socially motivated, create untenable financial burdens that the crippled utility can ill afford.
The sudden policy shift on allowances has not gone unnoticed by oversight bodies.
Public Accounts Committee (PAC) Chairperson, ‘Machabana Lemphane-Letsie, conveyed her bewilderment at the discovery.
“I discovered they reverted to the 10 percent because they simply couldn’t afford electricity bills,” she noted, emphasizing that the committee is awaiting the results of a forensic audit to dig deeper into the management dilemmas afflicting LEC.
The ultimate casualties of this protracted corporate crisis remain LEC’s customers and their businesses. Persistent load shedding, driven by inadequate infrastructure maintenance, financial limitations on power purchases, and vandalism, continues to stifle economic activity and disrupt daily life nationwide.
The economic ramifications ripple through every household and enterprise reliant on a consistent electricity supply.
The dwindling trust in LEC’s commitment to transparency casts a long shadow. Recurrent government bailouts, demanded by LEC’s failures, divert scarce public funds from essential services like healthcare and education, risking an inequitable allocation of resources amid rising national needs.
As management has historically engaged in a blame game regarding inefficiencies, citizens enduring blackouts are left to grapple with the fallout alone.
The board’s decision to slash allowances is a commendable and necessary first step. But it is only a first step. To truly restore reliable electricity to the people, LEC must transcend mere finger-pointing and isolated actions.
The way forward necessitates a thorough, uncompromising overhaul of its governance structures, unwavering financial discipline, strict accountability to regulatory authorities, and a renewed commitment to prioritize the collective needs of the nation over political agendas or internal privileges.
As pressure mounts and scrutiny intensifies, the necessity for decisive reform within LEC has never been more urgent. Alarm bells are ringing, not just for this entity but for the future of Lesotho’s entire energy landscape and economic stability.
The road ahead is laden with challenges that must be addressed with integrity and purpose.
The spectre of financial instability looms large as Lesotho approaches a critical crossroads. Citizens’ hopes for consistent electricity are now tethered to the courage and resolve of those at the helm of LEC. The board has shown it can make a tough choice.
The nation now watches to see if this marks the beginning of a genuine renewal or merely a temporary pause in an ongoing power struggle – not only for electricity but for the nation’s economic viability and future. The time for action is now; the illumination of hope, finally flickering to life, must not be extinguished.
