Pair charged with multi-million rand fraud in Lesotho Highlands Water Project
Moeketsi Victor Williams and business partner Mabohlokoa Itumeleng Chaka allegedly siphoned off R4.5 million from one of the contracting companies
FILE: An aerial view of a dam from phase 1 of the Lesotho Highlands Water Project. Picture: http://www.lhda.org.ls/
The former managing director of a company involved in the multibillion rand Lesotho Highlands Water Project (LHWP) and his business partner have been charged with fraud and money laundering. They appeared in the Maseru Magistrates Court last week.
They are alleged to have siphoned off over M4.5-million (R4.5-million) from SM Consulting Engineers (SMEC).
Moeketsi Victor Williams, who headed SMEC at the time of the fraud, and his business partner, Mabohlokoa Itumeleng Chaka, face four criminal charges for allegedly using their joint venture – Green Energy Logistics and Consulting (Pty) Ltd – to orchestrate the fraud.
A Lesotho Highlands Water Project contract was awarded in August 2016 to Plan Tech–SM JV – a partnership between SMEC and South Africa’s Plan Tech – for professional services related to the design, construction and supervision of bulk power supply and telecommunications for Phase II of the LHWP.
Both Plan Tech and SMEC were to share in the assets and payments from the project. SMEC was allocated a Nissan Almera vehicle, which was expected to be acquired once the joint venture disposed of its assets. However, Lesotho’s anti-corruption body, the Directorate on Corruption and Economic Offences (DCEO), found that Williams diverted the vehicle into the name of Green Energy Logistics and Consulting, which had no contractual ties with the partnership and was never entitled to its assets or payments.
According to the charge sheet, the fraud widened when payments for services rendered to Lesotho Highlands Development Authority (LHDA) were found to be misdirected. Instead of SMEC receiving its rightful share from the joint account of Plan Tech–SM JV, Williams allegedly instructed that the money be transferred to Green Energy’s Nedbank account.
Two transfers form the core of the criminal charges. On 13 December 2023, M517,500 was transferred allegedly under false pretences, with Williams and Chaka misrepresenting that SMEC had approved the transaction.
Then on 15 April 2024, over M4-million was transferred into Green Energy’s account, again without SMEC’s approval and under similar circumstances.
These transfers led to two counts of fraud under the Lesotho Penal Code Act 2010.
MONEY LAUNDERING
The case subsequently widened into money laundering charges under the Money Laundering and Proceeds of Crime Act of 2008.
Prosecutors allege that on 27 November 2024, the accused, in an effort to conceal the proceeds, invested more than M2.4-million of the April transfer in Lesotho treasury bonds, and another M200,000 was used by Chaka to buy a plot in Maseru South West, registered in Green Energy’s name.
Williams, who was relieved of his position as SMEC director in August 2024, but still retains 150 of the company’s 1,000 shares, appeared alongside Chaka before Magistrate Lebusa Tšosane last Thursday.
Their lawyer, Attorney Monaheng Rasekoai, sought bail, arguing that his clients were not flight risks. “Their businesses are based in this jurisdiction, and they are committed to attending the criminal trial,” he told the court.
The magistrate approved bail, setting it at M10,000 each, with an additional surety of M100,000 each.
The case has been adjourned until September, when Williams and Chaka are expected to face trial on all four charges.
Disclosure: Attorney Monaheng Rasekoai, who represents all the accused in this matter, also serves as the board chairperson of the MNN Centre for Investigative Journalism in Maseru. The author of this article is the centre’s managing director.
This article first appeared on GroundUp. Read the original here.