Allegations of the Lesotho Highlands Water Project being ‘captured’ by politically connected businesses are gaining ground with a year-long delay in construction – and South Africans will be paying for rising costs
Water Affairs and Sanitation Minister Nomvula Mokonyane is set to be grilled by the Public Protector’s office this week in connection with her involvement in the attempted “hijack and capture” of the binational Lesotho Highlands Water Project by a politically connected business entity and senior politicians from the landlocked country.
Public Protector Thuli Madonsela’s office confirmed the meeting, as did Mokonyane’s spokespeople, who said she was cooperating and had “given a date to engage with the Public Protector”.
The minister is said to have personally intervened to delay the project by a year to enable the involvement in the lucrative project of LTE Consulting, a company with which she has a long-standing relationship and which is a generous funder of the ANC.
City Press has established that LTE has made donations to the ANC amounting to R3.5 million in the past two months.
The R26 billion project is aimed at building a massive dam and tunnels to ensure the continuous supply of fresh water from Lesotho to Gauteng. It is overseen by three delegates per country comprising high-level officials who form the Lesotho Highlands Water Commission, a binational structure.
The R26bn Lesotho Highlands Water Project involves the construction of a 165m dam, a 38km tunnel and the generation of hydroenergy. The project, which will be constructed inside the borders of Lesotho. South African taxpayers will fund the entire project and Gauteng water users will pay royalties to Lesotho. The scope of the project is estimated to be equal to 100 Nkandla renovations.
Commencement of work on the project has now fallen a year behind because of the delay that Mokonyane ordered.
The year-long delay of Phase Two – the first phase was in the 1980s and 1990s – means the project will only be completed in 2025 instead of 2024. As a result, the original price tag of R22 billion has surged to R26 billion.
Senior officials on both sides of the border say the delay was a deliberate ploy by Mokonyane to buy time for LTE to get involved.
It is not clear how much LTE stood to gain from the project, but the standard fee for consultants is usually 10 percent of the total cost.
LTE is already the beneficiary of R5 billion worth of projects from the department. Some of these are the subject of a special investigating unit probe, following President Jacob Zuma’s issuing of a proclamation to probe the company in April.
Between last year and this year, the South African and Lesotho governments fired officials who were seen as obstacles to enabling the deal with LTE by senior politicians and replaced them with favoured officials. City Press can today reveal that:
- In March 2015, Mokonyane’s director-general, Margaret-Ann Diedricks, demanded that Dr Zodwa Dlamini – South Africa’s chief delegate to the water commission – halt the project’s procurement processes, offering no reasons for this.
- LTE boss Thulani Majola met with Lesotho officials to demand tenders, freely dropping Mokonyane’s name in the meetings.
- In October, Mokonyane removed Dlamini – who has 10 years of experience in water mega-projects – from the project, offering no reasons for this. She was replaced by Gauteng’s former MEC for infrastructure development Bheki Nkosi, who served under Mokonyane when she was Gauteng premier, and worked alongside her in ANC provincial structures.
- Madonsela is now investigating the circumstances surrounding Dlamini’s removal from the project.
MINISTER: IT’S ALL ABOUT TRANSFORMATION
The department of water affairs and sanitation denied any wrongdoing by Mokonyane, saying allegations of an improper relationship between her and LTE bosses “are false, malicious, speculative and calculated to discredit and damage her good name”.
The department said her sudden halting of procurement was prompted by the need to incorporate transformation objectives ensuring that black people, women, the disabled and poor communities benefited.
It added that both parties agreed to amend procurement policies to address transformation that would benefit black emerging companies in both countries. The office would not comment on Dlamini’s axing as this was before the Public Protector.
THE ALLEGED CAPTURE
On December 1 2015, Mokonyane wrote to her counterpart Mokose, informing him that she was removing Dlamini from the project and that communication with her “has to cease with immediate effect”. Mokonyane gave no reasons for doing so.
On the same day, she wrote another letter, notifying Mokose that Nkosi, who was acting CEO of the Gauteng Gambling Board at the time, would replace Dlamini.
Dlamini refused to comment, but a source at the water commission said Dlamini’s woes and fallout with Mokonyane began in March last year, when the commission issued prequalification tenders for the design of the dam and tunnel.
The source, a senior administrator, said director-general Diedricks wrote to Dlamini, instructing her not to proceed with the tenders.
The letter read: “You are hereby advised that the RSA government is concerned about the proceeding of the tender adjudication procedures until such time as RSA has had an opportunity to engage with the government of Lesotho on this matter. It would therefore be appreciated if the bid documents received remain sealed and in safe custody until the two countries have had an opportunity to discuss and agree on how to proceed with the tender adjudication process.”
This was followed by visits to Lesotho by Mokonyane in August and October to meet with Mokose. On both visits, she stressed the need for South Africans and Basotho to benefit from the project.
MINISTER WANTS TO BE CLOSER
According to a Lesotho official, in the August meeting with the Lesotho Highlands Development Authority (LHDA) and Mokose, Mokonyane said she felt that the South African government was “too far” from the project.
“She said she sees things happening and reads the newspapers. You could see that she wanted something and that Dlamini was a stumbling block,” he said.
Minutes of her October visit show Mokonyane proposed that two “senior politicians” from both countries be appointed to the LHDA board as representatives. The department claims both ministers (Mokonyane and her Lesotho counterpart) agreed at the meeting that transformation objectives were not reached.
An executive at the water commission told City Press that LTE boss Majola paid the delegates from both visits at different times, trying to convince them to give his company tenders.
On these visits, Majola was instructed to identify companies in Lesotho, as well as global companies, that he could form joint ventures with – and [that he should] present solid proposals and bids as the criteria were stringent,” said the executive.
Another senior executive at the commission told City Press that a senior politician in Lesotho later facilitated a meeting between LTE and Putsoane. “Majola visited Putsoane on his own, and asked him for tenders. Putsoane gave him a list of all upcoming tenders and told him to submit his bid. Majola said he was not interested in submitting a bid and that he would approach Mokonyane. So when the initial rejection from the water affairs department in Pretoria arrived [of the prequalification of bids for the design of the dam and tunnel], Putsoane was not surprised. He was expecting it,” he said.
LTE did not respond to City Press’ inquiries.
The senior official said following Diedricks’ instruction to Dlamini to stop the procurement process, Mokonyane’s department rejected the companies which the LHDA had initially shortlisted. They were instructed to re-advertise. “During the first round of the tenders, LTE did not tender. The second time they were there, but they presented a very poor tender,” the official said.
Another senior official at the commission, who was present when LTE’s bid was evaluated, confirmed it was poor.
“They had two engineers in a project that requires between 10 and 15 highly qualified engineers with experience in dam design and construction. Those two cannot even build a farm dam and think that they can build a 165m dam. What a joke.”
The official said there were little changes to the companies that had been prequalified during the first round. “About 95% were the same companies that had been prequalified during the first round.”
Lesotho’s own brandy
ROMA-“Go, eat your food with rejoicing, and drink your wine with a cheerful heart, for already the true God has found pleasure in your works,” so says the Big Book.
Driven by that divine, Mohapi Pule has gone a step further – by coming up with a new type of brandy – to make you merry.
The brandy, Mountain Spels Brandy, will make the heart of the dying man rejoice.
“The healthy nutrients in fruits that make brandy, end up in you when you drink it,” he said.
Pule studied nutrition at the National University of Lesotho.
His brandy is made by fermenting fruits into wine. The wine is then distilled into a brandy. It carries the flavour and the aroma of the original fruits.
The story began when Pule was born in Quthing, Mphaki. He was born to a hardworking mother who brew traditional beer like no other.
“She brew beer well before I was born. She is still making it to this day,” he said.
His passion for brewing was probably “born” even before he was born. Mothers have a hidden way of passing not just their looks but their passions to their children.
As he grew up, he found that he was still intertwined with his mom’s brewing business in one way or another.
“Mostly, I am expected to fetch water for the brewing process. That, I still do to this day when I visit home,” he says.
Two decades later, Pule found himself in the Roma Valley, doing BSc in Nutrition.
“At some point, I found that I had lost purpose in life. There was not a thing that I could say, well, I was passionate about this thing or that thing.”
That situation, of course, threw him into some serious soul-searching.
It brought him back to his roots.
“During this period, I recalled that when I was younger, I used to imagine helping my mom do the packaging of the beer she was making and helping distribute it countrywide,” he said.
From a young age, the issue of subsistence business didn’t appeal to him. But that imagination came and passed. Now here he was, worried that he might not amount to anything in life.
Then, boom! An idea came!
What if he produced an alcoholic drink?
He could have thought about anything to do as a business but, lo and behold! He thought about his mother’s passion!
One of the things he loves about alcoholic beverages is that they are popular.
“I haven’t seen products as popular as alcoholic drinks,” he said.
He might be wrong or right but the reality is, the rest of the world has for generations found delight in alcoholic beverages – some to the extent of overdoing it to their injury!
“Mabele khunoana ralitlhaku thabisa lihoho. Mabele u tsoa kae e le khale re u batla re sa u thole? Ueeeena mabeeeele!” (Loosely translated beer brewed from sorghum make men happy. We’ve been looking for you from afar, you sorghum. In short, this is a praise poem for the Sesotho sorghum brew).
But then came the most difficult part. Which specific beverages should he focus on and how would he do it?
He decided that he would focus on ciders. He realised that not many people in Lesotho were making ciders.
He started experimenting at home and realized how difficult the process was. He just couldn’t get it right. To worsen matters, he also did not have the right equipment.
But like most successful innovators, he just knew that he had to start his business right away.
Pule says he then learnt about other forms of beverages: the spirits. Spirits are very high in alcohol content. Here we are talking the likes of whiskey, vodka and brandy.
He was particularly interested in vodka. He went into one NUL laboratory and, with necessary permission, began testing a number of spirits and doing a lot of research about them.
He began saving some of the money he earned from the National Manpower Development Secretariat in the form of student allowance so he could buy equipment. Saving was not easy. The subsistence money was already not that much. Having to share it with a business was asking a little too much.
But Pule was so determined that he did it, bought equipment that allowed him to develop what he thought was “vodka”.
However, after buying the equipment he immediately realised that the equipment was to make brandy not vodka.
“Now I was forced to get into brandy by chance,” he said.
It was a mistake that he has never regretted having realised that there are very few individuals who were making brandy in Lesotho.
Pule had to throw himself fully into experiments. He read books about brandy production. He even enrolled for an online course on distillation.
In the end, he began to see some light.
“I began to feel some difference in the taste of my produce,” he said. “When I shared my produce with my lecturers, they were over the moon!”
With that encouragement, Pule began packaging his brandy and is now selling it to family and friends.
“My small equipment means that I can’t produce much. However, If I were to get bigger equipment, things would be much better.”
ROMA – ’MATUMANE Matela, a National University of Lesotho (NUL)-trained nutritionist, is an example of how a nutritionist should think and act.
Matela makes and sells ready-to-cook vegetables out of produce from her own farm or produce she preferably buys from local farms.
“When I make a dish, as a nutritionist, I make choices that ensure a typical package is packed with nutrition,” Matela said.
Today, we examine an interesting story of the lady who is determined to ensure that you eat healthy despite your busy schedule.
It started with her experiences in life.
She describes herself as an extremely busy woman.
She likes getting things done.
As the busy amongst us will say, the busier you become, the less you watch your diet.
She couldn’t escape the trap!
“My busy schedule meant that I ended up eating junk and I was gaining weight,” she said.
With time, she came to her senses.
As a nutritionist, she recalled that the best way to preach was to preach by example.
So, was she preaching what she practised?
Clearly, she wasn’t.
She had to find an option to maintain the busy schedule and eat healthy at the same time.
The beautiful thing about nutrition is that the healthiest foods are the closest to us: fruits and vegetables.
Some scientists even claim that our bodies seem to be designed to thrive on fruits and vegetables.
“Have you ever wondered why looking at a ripe raw peach on a tree is mouth-watering but looking at a fat cow isn’t?” asked one scientist.
Well, whether we were designed for fruits and vegetables or not, the truth is that they are good for our bodies.
That’s what good science tells us.
And we somehow “know it” too if you have heard about anything called intuition.
So one day she found herself increasingly eating fruits and vegetables.
It’s easier to change a religion than a diet, they say.
So it is commendable that she changed her diet at all.
“The idea was to chop as much vegetables as possible and put them in a fridge so that in future, I will just pull them out and cook.”
She wasn’t proposing something new.
Who amongst us doesn’t enjoy the convenience of just pulling up chopped frozen vegetables and cooking?
Little did she know that what she was doing was putting her on a path to a brilliant business.
It took a post on a social media to achieve just that.
“I took a pic of the chopped and packaged vegetables and posted them on my social media account. The reaction was swift. I began getting questions like, “how much?””
It immediately dawned on her that she could be sitting on a great business idea, after all.
So she gave it a try and started selling.
To her surprise, people started buying.
In fact, “I get orders for my products almost on a daily basis.”
That is how interested people really are.
This to an extent that her business now gets up to four irregular employees, she included, when the demand is high.
She said her training in Agriculture, Home Economics and Nutrition has helped her to give a thought into what she was doing.
For instance, where possible, she grows her own crops and sells them as first preference.
She has grown spinach, butternut, green pepper, onion, herbs and beans.
She is also in the process of renting more fields to grow more vegetables.
Then she empowers Basotho producers by requesting them to supply.
Going for foreign produce is the last resort.
Look at her packages and you realise something.
The “7 colours” proverb comes alive.
Those seven colours (several colours actually) may have been designed to appeal to your eyes but that is just the tip of the iceberg.
The colours of vegetables mean a lot in terms of nutrition.
Each colour gives you something different.
So, the more colours in one meal, the merrier.
To drive this home, let’s go a scientific route for a second.
Red, Blue and Purple: These vegetables contain substances that are good at reducing the risk of stroke, cancer and memory problems.
White: The likes of onion or garlic may help lower your risk of high blood pressure, high cholesterol, cancer and heart disease.
Orange and Yellow: Carrots immediately come to mind.
These vegetables contain substances called carotenoids which may help improve your immune system and help to improve the health of your eyes.
Basotho, it would appear, have long known a thing or two about the relationship between carrots and eyes.
Hence the famous saying, “o jele lihoete” (they ate carrots), often applied to good sportsmen or women with symbolically “good eyesight”.
Green: Green is life. Green vegetables come packed with chlorophyll, a chemical that scientists believe can boost your immune system, eliminate fungus in your body, clean your blood, lead to healthy intestines and give you boundless energy.
As a bonus, her Home Economics background is such that she is armed with a host of recipes for each of the packages she sells.
She has great dreams for the future.
“I want to see my products decorating the shelves of big supermarkets,” she said.
A new, co-operative chain store
ROMA – ’MAKUENA Lesiea is spearheading the creation of a cooperative chain store that will sell Lesotho products only.
The store is being developed under the National University of Lesotho (NUL) Innovation Hub and it will be incubated by the Hub.
“Have you seen it? Basotho are producing like never before,” Lesiea said.
“However, their products are hard to see in the markets. We want to change all that.”
The store, she said, will open branches in all districts of Lesotho, starting from Maseru.
Visit any supermarket in Lesotho and check the products on the shelves.
You will be shocked to realise that, in general, just one percent of them are made in Lesotho.
The other 99 percent comes from elsewhere.
Is it because Basotho are not producing or can’t produce at all?
“Having worked directly with the NUL Innovation Hub and the Tsa Mahlale TV programme under the Hub, I have travelled the depth and breadth of Lesotho and I was amazed at the amount of work Basotho are doing,” she said.
What is the problem?
Basotho products are not given sufficient platforms to prove themselves.
“Credit where it is due, some shops are beginning to accept and sell Basotho products,” she said.
“However, they are barely making a dent because Basotho products, being at their infancy, cannot receive full attention unless by a store that is designed to give them full attention.”
Such a store doesn’t exist.
She said the idea is not to compete with any of the existing stores because “we are getting into a new territory altogether, we are addressing a different market”.
So listen to Lesiea as she presents some features of the store that will surely persuade you to join the bandwagon:
- Customer and producer confidence: The store, she said, will achieve two things.
First, when they see masses of Lesotho-made products in one place, Basotho customers will slowly grow confidence in them.
The confidence will shoot to the roof when the customers experience that many of the products made in Lesotho are already way ahead of foreign competitors in terms of quality.
Secondly, the store will give Basotho producers an assurance that their products have, at least, one store that is willing to take them, dark or blue.
More production will come from such assurance.
- Selling “everything”: The store will sell everything from fruits and vegetables to processed foodstuffs to clothing and building materials (if Thabure car will be in production by then, it will be on the shelves too).
“Suppose what we want to sell is not locally made, we will never cross the border, any border, to find its equivalence. We will encourage Basotho to produce it until they do.”
- We mean business: whereas Basotho are beginning to produce, their products are still all over the place.
You bump across them in some few willing stores, in expos and trade shows, or as being sold by individual resellers. Those are good efforts, but they are not enough. In fact, many in Lesotho have come to see producing and selling as being more of an art, a hobby, a therapy or a hustling than a business, “so we are seriously moving away from such a casual approach, we mean business this time around.”
- Ownership: So when you enter this store, you could be purchasing a product made by you in a store owned by you. What a difference!
- Reasonable standards: the store will only demand reasonable standards. As a struggling Mosotho, try taking your products to some of the local shops and you are, at worst, turned away without reason or, at best, given a long list of standards you must meet before they can take your product.
“In our case, as long as your products are reasonably of good quality, you are in. NUL Innovation Hub is already testing many Basotho products. We won’t ignore quality, but we won’t use it as a way to prevent Basotho products from growing either.”
- A cooperative chainstore: From contributing as little as M50 per month, members will use a continuous financing model to ensure that the store doesn’t just end in Maseru but reaches the ten districts of Lesotho.
Each branch will start at a medium scale in order to grow along with Basotho products. We won’t ask for investors to come from anywhere, “we will be investors ourselves.”
- An export launch pad. “We are often told to export our produce. The obvious question is, if you haven’t convinced your own people to consume your own products, how can you convince people in other lands to do so? Why should they take you seriously?”
However, the store is not meant to be a local store forever.
It will be a means by which we export our products to other countries in the future.
When we export the store to Soweto, we export it along with products from Lesotho.
Don’t say no because we have seen Chinese shops and Indian shops and, of course, South African shops, filled to the brim with Chinese products and Indian products and South African products in many countries.
“If they can do it,” Lesiea ended, “so can we.”
“Because if it is there in some of us, it is there in all of us.”
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