By Seleoe Nonyane
The Lesotho Electrical Company (LEC) has over the years been a subject of interference by politicians and this always negatively affected its functions and operations.
This was revealed by LEC board of directors’ chairman Rapapa Sepiriti this week when the appeared before parliament’s Public Accounts Committee (PAC) to respond to queries raised in the Auditor General’s report for the period between March 31, 2017 and March 31, 2020.
According to the report, LEC had suffered heavy losses due to theft and mismanagement, aggravated by poor financial record keeping.
Sepiriti told the committee that political interference was the major factor that affected LEC’s day-to-day operations.
He said whenever there is a change of government the board is also changed and this delays the completion of some of LEC’s projects.
“When this government came in, for instance, the board was instructed to halt all strategic decisions and it duly complied; the decisions were halted for almost six months.
“We received a letter from the incoming minister then to pause all strategic decisions and as the board we complied with that instruction,” he noted.
LEC’s operations were last month further affected when its financial management system, known as Systems Applications and Products in data processing (SAP), encountered technical glitches.
In a bid to address this problem, Sepiriti said, the board has proposed to meet with the designers and providers of the system who are based abroad.
“I am told SAP is being managed by consultants who are said to be conversant with the system, after initial suggestions that they were not competent.
“The systems issue is of great concern and we are determined to find solutions. The board will soon receive a progress report on the system, after which we will be in a position to disclose exactly when the consultants are supposed to complete work.
“It was only in late August when the board was told that the system was unable to produce reports. We are always enquiring about the system and whether it has what it takes to improve the company’s operations.
“We are always given reassurances that the system is not a problem but the only issue is they changed the consultant that was assisting in the field. LEC employees are adamant that the SAP is the perfect system that will help with all the challenges facing the company,” he added.
PAC chairperson ‘Machabana Lemphane-Letsie said the committee wants to know how LEC will move from the bad picture portrayed in the AG’s report.
Letsie said they want to know how the company will improve its operations such that it reflects not only in financial books but also in the quality of its services.
She scoffed at what she called LEC’s habit of applying for tariff hikes whenever it finds itself in a position where it cannot provide electricity to consumers.
“It is clear through the AG’s report and the LEC staff that there is flagrant misuse of funds in the company. The people who feel the pinch of this misuse of funds are Basotho. It is disappointing if the board is unable to chart the way forward for LEC,” she noted.
A PAC member, Montoeli Masoetsa, applauded the LEC board chairman (Sepiriti) for his candidness in revealing that political interference was at the core of LEC’s challenges.
Masoetsa observed that some of the members were appointed to the board because of their political affiliations.
He reiterated that the LEC and the Water and Sewerage Company were critical to the country’s economy growth.
“Investors will not come into a country that does not have electricity and water; these are basic requirements everywhere.
“Electricity is no longer a luxury in Lesotho, it has become a basic need. It is clear that LEC management has made it its business to give the board misleading information. It is up to the board not to allow this to happen,” Masoetsa said.
