Lesotho Highlands Water Project Scandal: Former Managing Director and Business Partner Charged with Fraud and Money Laundering
In a shocking turn of events, Moeketsi Victor Williams, the former managing director of SM Consulting Engineers (SMEC), and his business partner, Mabohlokoa Itumeleng Chaka, have been charged with fraud and money laundering in connection with the multibillion rand Lesotho Highlands Water Project (LHWP). The pair allegedly siphoned off over M4.5-million (R4.5-million) from SMEC, a company involved in the project.
According to the charge sheet, Williams and Chaka used their joint venture, Green Energy Logistics and Consulting (Pty) Ltd, to divert funds meant for SMEC. The alleged fraud involved the misdirection of payments for services rendered to the Lesotho Highlands Development Authority (LHDA). 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 suspicious 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.
The case has since 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 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 and Chaka appeared before Magistrate Lebusa Tšosane last Thursday, where their lawyer, Attorney Monaheng Rasekoai, sought bail. 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.
This scandal raises serious concerns about corruption and financial mismanagement in the Lesotho Highlands Water Project, a critical infrastructure development project in the region. The case highlights the need for greater transparency and accountability in the management of public funds and the importance of robust anti-corruption measures to prevent such abuses of power.
