Naledi Funerals suspends CEO, Company Secretary
- Amid bitter boardroom war, seeks LMPS backup
- LDF elements enter the fray
TEBOHO KHATEBE MOLEFI
MASERU – The boardroom battle tearing apart one of the country’s largest funeral service providers has escalated dramatically.
The newly reconstituted board of Naledi Funeral Planners (Pty) Ltd has suspended its Chief Executive Officer and Company Secretary, citing a sustained campaign of insubordination, refusal to implement board directives, and serious governance failures.
The suspensions, effective immediately from June 4, target Mosoeu Mabote (CEO) and Peter Matekane (Company Secretary and Head of Legal and Corporate Affairs). The board has also notified the Lesotho Mounted Police Service (LMPS) of the situation, requesting assistance in maintaining peace and order at company premises.
However, in a letter dated June 3, addressed to company chairman, Thabiso Madiba, the suspended company secretary, Peter Matekane, rejected the suspension notice, arguing that Madiba holds “no official position in Naledi Funeral Planners.”
Matekane described Madiba’s claim to the chairmanship as “false, misleading and fraudulent,” calling him “nothing but an impostor.”
Matekane further stated that the company is in the process of interdicting Madiba should he continue to misrepresent the company.
He also pointed to what he called a conflict of interest, noting that Madiba is “a promoter and employee of the rival company known as Nalane ea Basotho,” attaching social media posts and correspondence as evidence.
Armed confrontation at company premises
The crisis turned physical on the morning of June 4, when Maseru woke to reports of an illegal entry and occupation of Naledi’s offices near the Lesotho Agricultural College along the Maqalika Dam. According to security guards deployed at the office, ousted officials – who had reportedly been served with suspension letters either late on June 3 or early that morning – forced their way into the premises.
Head of security, Mokoatle Mokoatle, narrated that a black vehicle later arrived, whose occupants he suspected were soldiers brandishing AK-47 assault rifles. Following an altercation with security personnel, the armed occupants pointed rifles and threatened to shoot.
The Lesotho Mounted Police Service (LMPS) eventually arrived with three vehicles, and Mokoatle confirmed from a colleague that one of the vehicle’s occupants was indeed a soldier.
“I can also confirm by the men’s demeanour, posture and conduct that they were soldiers since I was also in the security sector – I used to work there,” Mokoatle said.
According to Mokoatle, the Chief of Police, Borotho Matsoso, called the Commander of the Lesotho Defence Force (LDF), Lieutenant General Mojalefa Letsoela, informing him that an act of criminality had occurred and his soldiers were involved. However, LDF spokesperson Colonel Kelebone Mothibi denied any involvement of army personnel in the Naledi Funeral fracas. LMPS spokesperson Superintendent Thabo Mohai said he was not aware of the developments but promised to follow up.
Origins of the dispute
The current crisis traces back to a chaotic Annual General Meeting held on January 16 at Thetsane Office Park in Maseru. During that meeting, major shareholders holding a combined majority of over 70 percent voted to dissolve the existing board, removing chairperson Malefetsane Tlelima and four other directors.
The shareholders appointed a new board comprising Thabiso Gilden Madiba (now Chairman), Khojane Maliba, Tšolo Seutloali, Tedius Msipa and Advocate Khotso Nthontho.
However, the ousted faction refused to accept the outcome, arguing that the AGM had been unlawfully continued after Tlelima walked out. The matter has been pending before the High Court since January, though court records indicate the court declined to grant interim relief to the ousted directors, allowing the new board to argue that their resolutions remain legally operative in the absence of a restraining order.
Governance allegations and DCEO link
At the heart of the dispute lies the controversial appointment of Peter Matekane. The board alleges that Matekane was unlawfully recruited while still employed by the Directorate on Corruption and Economic Offences (DCEO) – a direct violation of the Prevention of Corruption and Economic Offences Regulations of 2021, which prohibit DCEO officers from engaging in private-sector employment.
The DCEO confirmed it has already served Matekane with a show-cause letter over the dual employment.
“He was summoned to the office to receive a show-cause notice and was duly served,” DCEO spokesperson ’Matlhokomelo Senoko confirmed in a previous media interview.
Matekane, who also serves as Head of Legal and Corporate Affairs, is accused of failing to disclose his continued status as a DCEO employee while advising the company on governance matters – creating what the board describes as “actual or perceived conflicts of interest.”
Show-cause notices and allegations
In show-cause notices dated May 29, the board outlined a litany of grievances against the two suspended officers. Among the most serious allegations – management adopted a position refusing to implement board directives pending the outcome of court proceedings – despite there being no court order restraining the board from exercising its authority.
The board also took issue with Matekane’s refusal to convene board meetings. In April, Chairman Madiba instructed Matekane to convene a meeting to appoint independent directors and address governance issues. Matekane declined, arguing that the chairman’s appointment remained under legal challenge.
“Your attempt to instruct the convening of a purported board meeting will not hold for several reasons,” Matekane wrote at the time, adding that the three contested directors “do not in themselves form a properly constituted board.”
The CEO, Mabote, was cited for failing to attend board meetings on April 29 and May 23, failing to submit requested reports, and allegedly misusing company resources including vehicles, fuel cards, and debit cards.
Both officers have been placed on precautionary suspension with full pay and benefits for a period of ninety days pending investigation or until disciplinary proceedings conclude. Under the terms of the suspension, they are:
· Relieved of all duties, powers, and authorities
· Prohibited from entering any company premises without written authorisation
· Required to surrender all company property including vehicles, access cards, computers, and records
· Forbidden from accessing company systems, bank accounts, or electronic platforms
In an unusual move signalling the depth of the conflict, the board has deployed armed security personnel to all company premises and formally notified the Commissioner of Police. The letter to police, dated June 4, requests assistance should incidents arise involving “unauthorised entry, trespassing, intimidation of employees, interference with operations, or breach of peace.”
Shareholder reassurance and broader context
Despite the turmoil, the board has moved to reassure shareholders and policyholders. In a communique also dated June 4, Chairman Madiba stated that all branches remain operational, funeral services continue without interruption, and employee salaries and policyholder obligations remain unaffected.
“The suspensions do not constitute findings of guilt,” the board emphasised.
“The affected officers will be afforded all rights and procedural protections applicable under company policy and the law.”
The board has authorised the chairman to implement interim arrangements to ensure continuity of executive management, governance, and legal functions during the investigation period.
Naledi Funeral Planners, founded by Thabiso Madiba who holds a 45.152 percent stake, has faced repeated governance crises in recent years. The company was also at the centre of a distressing High Court case in January, where it was ordered to exhume two bodies that were negligently swapped by its staff and to compensate the affected families M60 000 each.
As the latest chapter in this corporate saga unfolds, all eyes remain on the High Court, where the underlying dispute over the board’s legitimacy remains unresolved. For now, the newly constituted board is forging ahead with its agenda – and it has made clear it will not wait for the courts to restore order.
However, with armed confrontations at company premises, rival factions refusing to recognise each other’s authority, and the police and army offering conflicting accounts, Naledi Funeral Planners’ immediate future hangs in the balance.
