...As DCEO intensifies war on graft
Moorosi Tsiane
THEY were entrusted with facilitating a scheme to empower Basotho entrepreneurs including taxi operators, women and the disabled, with economic opportunities facilitated by the government.
Yet instead of utilizing the scheme for its intended noble purpose, they saw an opportunity to enrich themselves and their relatives including their own children. All that at the expense of Basotho with little access to finance and viable opportunities.
Suspended Lesotho Post Bank (LPB) Managing Director, Molefi Leqhaoe, and two of his crony executives have thus been arraigned before the courts to face fraud, money laundering and corruption charges involving M14 million.
Leqhaoe and the LPB's Chief Sales Manager, 'Mathabo Tšehlo, and Digital Banking Manager. 'Mamohau Mapota, appeared before Resident Magistrate Thabang Tapole this week. He released them on M10 000 bail each after rebuking their lawyers' request that they be released on a mere M1000 each.
Their fraudulent and corrupt scheme prejudiced the government of M10 582 995 and the LPB of M3 235 500, according to the Directorate on Corruption and Economic Offences (DCEO)'s charge sheet.
They ran the scheme with the connivance of Ministry of Finance and Development Planning officials who ensured that the relatives were corruptly roped in to provide fleet services to the government since 2021.
According to the charge sheet, the government had asked LPB to facilitate loans for Basotho to acquire vehicles for the Basotho Fleet Scheme under which it hired vehicles for use by the State.
The government's noble objective was to use the scheme to empower entrepreneurs with little access to lucrative opportunities like women and the disabled.
Leqhaoe, Tšehlo and Mapota now stand accused of using the scheme as a gravy train for their own cronies to whom they facilitated loans despite that they did not meet the qualifying criteria. The LPB's own policy explicitly stated that employees and their relatives were excluded from the scheme.
That did not stop the trio from allegedly conspiring with their relatives to secure the vehicle loans unlawfully, in the process violating the bank's policy by failing to disclose their relationships with the loan recipients.
The accused allegedly approved vehicle loans for several individuals closely related to them, including M440 000 for Malerato Tlalinyane, M432 000 for Maletsabisa Seboka, M475 000 for Mamorena Matsoso, and M580 000 for Khethang Makhetha, among others. As a result of these actions, Lesotho Post Bank reportedly suffered a financial loss of M3 235 500.
Furthermore, the trio, are accused of working in cahoots with finance ministry official, Folojeng Folojeng, who was tasked with facilitating contracts between approved Basotho and the government. Folojeng ensured Leqhaoe, Tšehlo and Mapota's relatives were in the front queue for getting the contracts.
For instance, the LPB's chief Sales Manager Tšehlo's son, Thabo, was in the front queue for a contract. Former Principal Secretary at the Ministry of Gender and Youth, Sports and Recreation Tjoetsane Seoka, is also charged with corruption for allegedly partaking in corruptly facilitating the contracts.
Folojeng and Seoka allegedly orchestrated a plan for vehicles to be rented to the government by the cronies of the bank executives. The government paid between 19 702 and 21 623 per month per vehicle for the rentals since 2021 to the time of Folojeng and Seoka's arrests. It was prejudiced of M10 582 995 in the process.
Thabo (Tšehlo's son), Tlalinyane, Seboka, Matsoso, Seoka, and Folojeng as well as Mampho Molefi, Jota Hlabana, Ntsebo Thamae, Khethang Makhetha, Keneuoe Mochekoane who had also received loans and monthly rental fees from the government, are part of the charge over the M10 582 995 prejudice to the state.
After the charges were read, the accused, through their legal counsels, applied for bail. Advocate (Adv) Salemane Phafane KC requested that Leqhaoe, Tšehlo, Mapota, Makhetha, Mochekoane, Seoka, and Folojeng be granted M10 000 bail without surety, while the others be granted M1000 bail due to their financial circumstances.
However, the DCEO's Adv Tšeisa Pone opposed this, arguing that all accused should be held to the same bail conditions, given the severity of the charges. He argued that M1000 was insufficient for people facing such serious allegations.
"The purpose of imposing bail is to ensure the accused's presence before the court. A significant amount will compel their appearance. Given the serious nature of the charges they face, it would not serve justice to set their bail at M1000, especially since no surety is required.
"My Lord, M1000 is insufficient for someone charged with such serious crimes. While I acknowledge that they are presumed innocent until proven guilty, they are all accused of leasing vehicles to the government and are, therefore, capable of paying the proposed bail deposit," submitted Adv Tšeisa.
Adv Phafane countered that the accused had cooperated fully with the DCEO during the investigation.
"My Lord, these accused individuals have been reporting to the DCEO whenever required, without any payment. Why would they now abscond after paying M1000? The Crown's argument is unfounded. The court should consider the accused's personal circumstances and their ability to pay bail, rather than focusing solely on the charges," argued Adv Phafane.
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Other accused were represented by Adv Rethabile Setlojoane and Adv Lintle Tuke who concurred with Adv Phafane.
Magistrate Tapole then adjourned the court for about 10 minutes to deliberate. Upon resuming, he granted the bail application, setting bail at M10 000 for Leqhaooe, Tšehlo, Mapota, Makhetha, Mochekoane, Seoka, and Folojeng, while the remaining accused were required to pay M5000.
"The court has decided that the accused who are employed--Tšehlo, Leqhaoe, Mapota, Makhetha, Mochekoane, Seoka, and Folojeng--will be admitted to M10 000 bail. The remaining accused are admitted to M5000 bail.
"The accused are expected to attend remands, stand trial to its conclusion, and not interfere with Crown witnesses. The case is remanded to 10 September 2024," stated Magistrate Tapole.
The case exposes the canard that a 100 percent Basotho owned and run bank is what the country needs for real entrepreneurial development. Such a bank could instead just become a conduit to enrich corrupt networks gnawing at the soul of Basotho society.
The Lesotho Times has been told that the fraud runs deep with several other LPB officials (names supplied) involved. They are likely to be exposed in due course.
