Lesotho's $6.2 Billion Investment Deal Under Fire Over Minister’s Ties

Lesotho’s government has signed a landmark agreement worth $6.2 billion with US-based Convalt Energy to develop a hydropower plant and AI data center, but the deal is now marred by allegations of potential conflicts of interest involving a key minister.

The Kobong Project, touted as a significant step towards making Lesotho a regional energy exporter, has raised eyebrows due to Public Works Minister Matjato Moteane’s connection to the Sekhametsi Investment Consortium, a local firm set to be involved in the project. Moteane, a co-founder and shareholder of Sekhametsi, holds shares valued at approximately M27 million.

Concerns Over Political Influence

Energy Minister Lejone Mpotjoane confirmed that the government intends to invite local companies, including Sekhametsi, to join the venture. However, when questioned about the conflict of interest, Mpotjoane abruptly ended the conversation and blocked the reporter on WhatsApp. Moteane claimed he had declared his interest in Sekhametsi to the cabinet but could not verify his compliance with the law regarding declarations to the Directorate on Corruption and Economic Offences.

Questions About Project Structure

Despite Convalt Energy’s assurance that the Kobong Project will be privately financed without government backing, the decision to involve local firms has sparked concerns about the selection process and the equity stake they might receive. Government spokesperson Boitelo Rabele stated that details would be clarified following the feasibility study, which Convalt is currently conducting.

The scrutiny surrounding this deal is compounded by Moteane's previous involvement in a controversial airport refurbishment project, which had led to parliamentary calls for his removal last year due to alleged conflicts of interest. The political drama continues as Lesotho navigates this high-stakes investment.

Source: www.dailymaverick.co.za