LEC Loses M5m In Software Deal

(MENAFN- The Post) MASERU – THE Lesotho Electricity Company (LEC) lost over M5 million after buying software from a South African company that was liquidated a month after the transaction.

Jager Pty Ltd was paid a M5.2 million deposit for the software to improve the LEC's billing and meter reading systems.

After the company was liquidated the LEC could not use the system because there were no technicians to operate or maintain it.

The meters cannot be connected to the software. The LEC's suspended managing director, Mohlomi Seitlheko, told the Public Accounts Committee (PAC) that the software was designed to address inefficiencies in post-paid electricity billing, especially for high-usage clients such as banks.

“It is a system that would even help with reading the meters remotely,” Seitlheko said.

“We currently take 10 days to generate bills, but this system was intended to improve turnaround time and assist in identifying defaulters on post-paid accounts,” he said.

He said while the LEC had successfully bought related hardware, including meters and modems, Jager Pty Ltd's collapse rendered the software useless as there was no technical support available.

Seitlheko also revealed that legal action is being considered but confirmed that over M5.2 million had already been paid.

PAC member Dr Ts'eliso Moroke questioned why an upfront payment was made contrary to procurement regulations which require payment upon delivery of goods or services.

“How did you pay for something before it was delivered?” Dr Moroke asked.

Committee chairperson 'Machabana Lemphane-Letsie expressed concern over the lack of a written contract governing the transaction.

“How do you pay a company without a contract that clearly outlines terms and conditions? The fact that the company was liquidated just weeks later is suspicious. This could be a scheme,” she said.

The LEC's Head of Customer Experience, Lebohang Mohasoa, said the original intention was to buy both software and hardware from Jager as a single package but budget constraints forced them to buy only the software.

“We decided to source the meters and modems from a more affordable supplier,” Mohasoa said.

Mohasoa told the committee that a M1 million upfront payment was stipulated in the agreement.

Another committee member Mokhothu Makhalanyane criticised the LEC for poor financial planning.

“You have incurred serious costs for equipment that is now shelved. This is reckless spending,” he said

Nkheli Liphoto

MENAFN25062025000229011070ID1109720037