Questions arise in Lesotho over possible conflict of interest involving Minister Moteane
In Lesotho, the largest foreign investment deal in the country’s history, worth $6.2 billion and involving U.S. company Convalt Energy, has raised questions about a possible conflict of interest. The government plans to invite local partners into the Kobong project, and Sekhametsi Investment Consortium, in which Public Works Minister Matjato Moteane is a shareholder, was named among the potential participants, Daily Maverick reports.
The deal provides for the construction of a hydroelectric power plant and an artificial intelligence data center. Convalt is to conduct a feasibility study over the next year. The parties are then expected to conclude project implementation agreements, including on water use, and subsequently begin construction.
The minister’s stake
Energy Minister Lejone Mpotjoane told the MNN Centre for Investigative Journalism that the government would invite local companies, including Sekhametsi, to participate. According to the company register, Moteane owns 1,817 shares worth 15,000 maloti each. A source estimates his stake at approximately 27 million maloti.
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Moteane said that he had declared his interest in Sekhametsi to the cabinet and would recuse himself from cabinet discussions of the deal with Convalt Energy. Journalists were unable to independently verify whether he had filed such a declaration, as well as whether he had declared his interests to the Directorate on Corruption and Economic Offences, as required by law. Sekhametsi CEO Tuso Green said the company had not yet been approached about participating in the project.
Funding and previous questions
The Kobong project was presented as a privately financed Convalt initiative without state guarantees. Convalt head Hari Achuthan told MNN that the company would assume the financial risks, while financing mechanisms were to be formalized and disclosed after the feasibility study was completed. It is currently unknown what stake local companies may receive. Government spokesperson Boitelo Rabele said she could not yet answer whether the state planned to own a stake in the project.
Last year, three parliamentary committees recommended removing Moteane from office and investigating a possible conflict of interest and possible criminality in the matter of the upgrade of Moshoeshoe I International Airport. Parliament did not adopt the report. Separately, MNN reported on a 2022 civil lawsuit in the United States in which two bitcoin mining companies made allegations of fraud and misappropriation of funds against Convalt Energy and Achuthan; the court did not consider those allegations on their merits.
