GROUNDUP: Lesotho’s biggest foreign investment deal under scrutiny over minister’s stake in potential partner

Lesotho Public Works Minister Matjato Moteane is a shareholder in a local firm the government plans to invite to participate in a $6.2-billion agreement with US-based Convalt Energy to build a hydropower plant and AI data centre .

Lesotho has signed the largest foreign investment deal in its history: a $6.2-billion (about R101-billion) agreement with US-based Convalt Energy to build a hydropower plant and AI data centre. The Kobong Project promises to turn the country into a regional power exporter.

However, a potential conflict of interest has surfaced, raising questions about political influence for private gain and casting doubt on promises that citizens will benefit without bearing any costs.

Convalt will be completing a feasibility study over the next year, which will be followed by implementation agreements, including water-use plans. Construction will then commence.

Lesotho’s Energy Minister Lejone Mpotjoane confirmed in an August interview with the MNN Centre for Investigative Journalism that a binding agreement had been signed, and the government would invite local partners to participate.

Mpotjoane also revealed that one of these local firms is Sekhametsi Investment Consortium, of which Minister of Public Works Matjato Moteane is a co-founder, former chairperson and shareholder.

Last year, three parliamentary committees called for Moteane’s removal over a conflict-of-interest and criminality investigation.

According to the Sekhametsi company’s register, Moteane holds 1,817 shares. Each share is worth M15,000 (M1=R1), making Moteane’s holding about M27-million at the current value.

We asked Moteane about his potential conflict of interest. He said he had declared his interest in Sekhametsi to the cabinet.

We were unable to verify this. We could also not verify whether he had declared his interests to the Directorate on Corruption and Economic Offences, as required by law. Declarations to this body are kept confidential.

Moteane said he would recuse himself when the cabinet discussed the Convalt Energy deal. He said that he had done so in other matters.

Sekhametsi CEO Thuso Green said he had not yet been approached to participate.

Although the Kobong Project has been presented as a privately financed initiative led by Convalt, the government’s intention to invite local firms to participate raises questions about how it will select these investors and structure the project.

Mpotjoane has said previously that Lesotho was not putting any money into the project, and Convalt CEO Hari Achuthan told MNN that Lesotho faced no financial risk.