Friday, November 6, 2026
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Lesotho

M1.4m compensation fraud probed

. . . ex-miners’ council cries foul

. . . petitions labour minister Mokhosi

. . . as M640m payments are suspended

Police are investigating a fraud case involving M1.4 million

payments by South Africa’s Compensation Commissioner for Occupational Diseases to former Basotho mineworkers through the Compensation Fund.

Police spokesperson Superintendent Thabo Mohai confirmed this yesterday.

The probe comes after SA Compensation Commissioner, Dr Barry Kistnasamy, suspended disbursement of R640 million set aside exclusively for Basotho claimants on December 18, 2025. This after allegations that about M1.4 million was siphoned from the Compensation Fund.

The Merafong Mine Workers Council of Lesotho says the long-drawn suspension of payments has dealt thousands of local beneficiaries a heavy blow.

Ten months later, the organisation says, payments remain frozen, with no timeline provided for their resumption.

“We are concerned that legitimate, verified claimants are being punished for a fraud they did not commit,” Secretary-General Rants’o Mantsi said in a letter dated October 26, 2026 to the Minister of Labour and Employment, Tseliso Mokhosi.

The council decided to petition Mokhosi because some beneficiaries receive their compensation from South Africa through a department under his ministry.

Mantsi expressed the council’s dissatisfaction with the treatment of former mineworkers and their dependants by the South Africa’s Compensation Commissioner for Occupational Diseases and asked him to intervene on their behalf.

Many of those affected are the elderly suffering from occupational lung diseases, or widows of deceased mineworkers, it noted.

“For them, the delay is effectively a denial of justice; some will not live long enough to receive what they are owed,” the letter states.

It further notes that the families have not received any official explanation or communication from relevant Lesotho authorities, resulting in confusion and distress across all districts.

The council urged Mokhosi to engage South Africa’s Department of Employment and Labour in a bid to secure the lifting of the suspension for verified claimants.

It also wants the ministry to request a comprehensive report on investigations into the fraud case and ensure that innocent claimants are treated separately.

“We also seek a firm timeline for the disbursement of the R640 million and assistance in facilitating urgent payments to those who are owed,” the council indicated.

In an interview with theReporter this week, Mantsi alleged that 10 individuals had colluded to defraud the Compensation Fund.

One of them signed for funds on behalf of five people while falsely presenting himself as a beneficiary, he claimed.

In an interview with this publication this week, Mokhosi said the issue did not originate from his ministry.

He noted that some beneficiaries receive compensation through the Ministry of Labour and Employment, but in this particular case, the matter falls under the Master of the High Court.

He also indicated that involved individuals had allegedly forged a letter purportedly issued by the Master of the High Court to gain access to the funds.

Mokhosi said fraud was a serious issue that needed to be addressed, stressing that Basotho should receive the compensation they are entitled to.

When contacted this week, Dr Barry Kistnasamy said he was no longer working in the SA office of the Compensation Commissioner for Occupational Diseases and was therefore unable to comment on the matter.

He further said he could not provide the contact details of his successor, as he was currently way in Bali.

In the letter, the council claims that files of nine claimants were complete but they could not be paid due to the suspension. They come from the Maseru, Mafeteng, Quthing, Qacha’s Nek, Thaba- Tseka and Botha Bothe districts.

The letter has also been copied to the Office of the Prime Minister, Lesotho Mounted Police Service, the Directorate on Corruption and Economic Offences, the Clerk of Parliament, Social Clauster, the Public Accounts Committee, the Law Society, Christian Council of Lesotho, the Lesotho Council of NGOs, the College of Chiefs, the US Embassy, the European Union Delegation, United Nations Development Programme and International Organisation for Migration in Lesotho.

The Ministry of Labour and Employment last month announced outreach campaign that former and current Basotho mineworkers will receive assistance in claiming unpaid benefits.

Mokhosi said the campaign would bring together relevant institutions to help mineworkers access their entitlements and protect them from fraudsters who demand payment to facilitate claims.

He added that the ministry had received persistent complaints from former mineworkers who have not yet received their benefits.

He also cited that one of the main obstacles is that some of the required documents can only be obtained through the Office of the Master of the High Court in South Africa, making it difficult for many Basotho to complete the claims process.

The Mineworkers Provident Fund, Rand Mutual Assurance and Ts’iamiso Trust also took part in the campaign, which also sought to help people without bank accounts.

Mokhosi warned mineworkers against individuals who promise to help them claim their benefits in exchange for money, only to steal the funds.

He urged them to use legitimate channels, such as the institutions participating in the campaign.

Representing the Lesotho Women in Mining Association and Justice for Miners, ‘Mamokhants’o Nkune said the organisations understood the difficulties faced by former mineworkers still waiting for their benefits and were ready to guide them through the claims process.

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