MASERU – THE government has been forced to refund M22 million to the World Bank after failing to account for how the funds were used in the construction of an electricity substation at Ha Belo Industrial Estate.
The M22 million was an advance from the World Bank for the cost of constructing the substation and other components.
The World Bank was then told that the money had been used on the substation.
A subsequent inspection on the site however raised alarm bells, leading the World Bank to demand documents proving how the money was used.
And when the documents were not forthcoming, the World Bank demanded an immediate refund.
Prime Minister Sam Matekane told a press conference on Monday that the government has since paid the refund.
“The government does not have any receipts, yet the M22 million is gone,” Matekane said.
“We have just sent it back, they took it”.
In yet another shocker, Matekane revealed that the government is racing to find documents to support how an additional M45 million advance from the World Bank was used on the same project.
“The World Bank has recently requested receipts for work that has already been completed,” Matekane said, adding that the documents are expected next month.
“We still do not know what (the World Bank) is going to do next. But they’ve made it clear that if there’s no evidence the M45 million must also be returned as it was not used for its intended purpose.”
It is not clear when the M22 million and the M45 million were advanced for the Belo substation project.
The police and the Directorate on Corruption and Economic Offences (DCEO) are now investigating alleged corruption on the project whose cost have alarmingly escalated but with little progress.
Several suspects have been arrested and charged with corruption and fraud.
Matekane said the project is “only 60 percent complete even though the initial M86 million allocation has already been exhausted”.
“The project was later given an additional M41 million on top of the original amount.”
“Now we are being told another M50 million is needed to finish it.”
The prime minister was however quick to blame the previous government for the alleged corruption and mismanagement of the project.
“This corruption was done by the past regime, we just inherited these problems”.
He said his administration remains committed to completing the Belo power substation,
On broader issues of alleged corruption within his government, Matekane called on whistle-blowers to come forward with evidence.
“I often hear rumours that some of my ministers are corrupt,” he said.
“Come to me with evidence and I will arrest them immediately. I need tangible proof, I don’t want my name tarnished by working with thieves.”
He said he has also instructed the DCEO to investigate allegations of corruption on the Moshoeshoe I International Airport refurbishment tender.
“I received reports about flaws in the procurement process, and I’ve instructed the DCEO to investigate.”
Matekane said he referred the matter to the DCEO after discussions with the Public Accounts Committee (PAC) which investigated the alleged corruption.
The delays on the substation has forced the government to postpone the invitation to investors to use the factory shells in the Ha Belo Industrial Estate.
This has endangered the 8 000 jobs that were earmarked to be created in the Estate.
The second phase of the estate, which is expected to be double the first one, is also on hold.
Nkheli Liphoto
