USD 53 Million Energy Deal With Chinese Firm Sparks Outrage Over Alleged Undue Influence

The Ministry of Energy, in collaboration with Finance Minister Dr. Rets’elisitsoe Matlanyane, is facing mounting criticism following revelations of a secretive and controversial USD 53 million contract signed with Chinese company Beijing Jungyuntong Technology. The high-value deal has drawn intense scrutiny over concerns of transparency, ethical conduct, and potential conflict of interest involving top government officials.

The controversy erupted after it emerged that the contract was finalized shortly after a fully funded trip to China in January 2025. The trip, sponsored by Beijing Jungyuntong Technology, included senior Lesotho officials from the Ministry of Energy, the Ministry of Finance, and the Lesotho Electricity Company (LEC). During the visit, the delegation reportedly received per diem payments directly from the Chinese firm.

Appearing before the Public Accounts Committee (PAC), suspended LEC Managing Director Mohlomi Seitlheko confirmed the details of the trip. He disclosed under oath that he, along with Finance Minister Dr. Matlanyane, the Principal Secretary for Energy, and other officials, were taken to China and offered monetary allowances by the very company they later awarded the contract to.

“Yes, we went to China. It was an all-expenses-paid trip by Beijing Jungyuntong, and per diems were provided,” Seitlheko testified, adding weight to growing calls for a full investigation into the matter.

The secrecy surrounding the deal and the circumstances under which it was negotiated have raised red flags among members of Parliament, civil society groups, and anti-corruption watchdogs. Critics argue that accepting financial allowances and travel perks from a bidder before awarding a lucrative contract may amount to unethical conduct and possible violation of procurement regulations.

“This raises serious questions about the integrity of our procurement processes and whether undue influence was exercised in securing the deal,” one PAC member remarked during the session.

While the full scope and terms of the contract remain unclear, preliminary reports suggest the USD 53 million agreement involves the supply and installation of smart grid and energy infrastructure technology across Lesotho. However, experts have pointed out that the tendering process lacked transparency and public consultation, further fueling suspicion of backdoor dealings.

Calls are now growing for the Office of the Auditor-General and the Directorate on Corruption and Economic Offences (DCEO) to launch a formal inquiry into the transaction. Legal experts say that if impropriety is proven, the deal could be subject to legal challenge and possible cancellation.

As public pressure mounts, the Ministry of Energy and the Ministry of Finance have yet to issue a formal statement addressing the allegations. Meanwhile, the scandal has added fuel to longstanding concerns over governance, transparency, and accountability in Lesotho’s public sector.