Lesotho's Record Foreign Investment Deal Faces Conflict of Interest Questions

Lesotho has signed a $6.2-billion agreement with US-based Convalt Energy to build a hydropower plant and AI data centre. Known as the Kobong Project, this is the largest foreign investment deal in the history of the country and aims to establish Lesotho as a regional power exporter. Convalt Energy will conduct a feasibility study over the next year before implementation agreements and construction begin.

Questions regarding political influence and private gain have emerged after Energy Minister Lejone Mpotjoane confirmed that the government intends to invite local partners to participate. Mpotjoane identified Sekhametsi Investment Consortium as one of these potential firms. Minister of Public Works Matjato Moteane is a co-founder, former chairperson, and shareholder of Sekhametsi. Company registers indicate Moteane holds 1,817 shares valued at approximately M27-million.

Moteane stated that he declared his interest in Sekhametsi to the cabinet and intends to recuse himself from cabinet discussions regarding the Convalt Energy deal. However, reporters were unable to verify this claim or confirm if he declared his interests to the Directorate on Corruption and Economic Offences as required by law. When questioned about the potential conflict of interest, Minister Mpotjoane ended the call and blocked the reporter on WhatsApp. Sekhametsi CEO Thuso Green stated that the firm has not yet been approached to participate.

While Convalt CEO Hari Achuthan and Minister Mpotjoane have stated that the project is privately financed without government guarantees or financial risk to Lesotho, the government's role in selecting local firms remains unclear. Government spokesperson Boitelo Rabele declined to say if the government would hold an equity stake, noting that the government will advise itself on the implementation agreement after the feasibility study.

This scrutiny follows a previous investigation into Minister Moteane. Last year, three parliamentary committees called for his removal over a conflict of interest involving a M184-million refurbishment of Moshoeshoe I International Airport. Moteane had been a shareholder in an architecture firm included in the winning bid, though he claimed he relinquished his shares before becoming a minister.