LEC Buys M13m Equipment At Odds With System

(MENAFN- The Post) MASERU – THE Lesotho Electricity Company (LEC) bought metres, keypads and transformers that are incompatible with the company's system at a staggering cost of M13 million without following procurement procedures.

The parliamentary Public Accounts Committee (PAC) visited the LEC storerooms unannounced yesterday after the management denied that they had bought the paraphernalia.

The committee found that the LEC had bought 3 000 incompatible meters and keypads worth M6 million from Landis+Gyr on June 5 this year.

The committee also found that the company bought nine transformers from Power Link Holdings worth over M7 million in May to bring the total to M13 million.

The PAC members were shocked to find the equipment still gathering dust in storerooms, unused due to its incompatibility.

The LEC's Procurement Manager, Peo Mputsoe, explained that the transformers delivered were of the 1142 type instead of the 11400 type that were originally requested, making them incompatible with the existing LEC system.

Meter reading manager, Tšepo Mololo, shocked the committee when he disclosed that they do not have a software that will operate the six million meters and keypads.

When grilled on why procurement was done without tendering, Mputsoe claimed he was acting on instructions from the acting Managing Director, Ntsie Maphathe, and Head of Finance Lintle Thamae.

However, both executives denied giving any such instructions.

“I do not know anything about the delivered transformers without purchase orders,” Thamae said.

“He (Mputsoe) does not need approval from me,” she said.

“He issues requests for bids and only reports to me afterwards.”

Maphathe also denied knowledge of the delivery of the meters and transformers.

“There is a chain of command at the LEC,” Maphathe said, adding that he is“not informed of everything”.

“I did not instruct anyone to procure these items.”

He admitted that the 3 000 meters and keypads are not compatible with the LEC system.

“I thought they were procured to address the deadlock issue,” he said.

The PAC expressed frustration that unlawful procurement had continued despite previous warnings.

Committee chairperson, 'Machabana Lemphane-Letsie, directly blamed the procurement team for ignoring regulatory procedures.

“Why are you continuing with the same kind of procurement?” Lemphane-Letsie asked.

“We've been telling you to change, yet you proceed while appearing before this very committee,” she said.

A PAC member Lephoi Makara said he knew that“the transformers are not even compatible with the LEC's system”.

“Materials worth M6 million should not be handled this carelessly,” Makara said.

Another member, Dr Tšeliso Moroke, sharply criticised the managing director.

“You appear clueless about what's happening at LEC,” Dr Moroke said.

“How can metres worth M6 million be delivered, and you claim to know nothing?” he said.

“The only thing you seem to manage is suspending or expelling employees.”

Peo Mputsoe later admitted that procurement continued despite the PAC's ongoing investigation.

“We continued procurement during the initial days of the committee proceedings and only stopped on the final day,” Mputsoe said.

“I did, however, write to the MD and Head of Finance last Thursday to seek direction, and we agreed to halt the process.”

He maintained that all purchase requests were made under management's instructions, a claim both senior officials rejected.

On the contrary, the Acting Head of Customer Experience, Tsepo Mololo, argued that“the transformers were, in fact, compatible and urgently needed”.

“We are facing a deadlock in connecting new customers,” Mololo said.

“These transformers are meant to resolve that.”

This latest controversy adds to the growing list of procurement scandals at the LEC.

The PAC has demanded that the incompatible equipment should be sent back to the suppliers.

Nkheli Liphoto

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