A syndicate allegedly stole diesel worth about M53 million from Letšeng Diamond Mine through an elaborate scheme that spanned over months. The syndicate is suspected to have included employees of Letšeng Diamond, Tholo Energy and G4S Security. By the time the fraud was discovered in mid-2021 some 2,6 million litres of diesel had been stolen at the mine in Mokhotlong. The Directorate on Corruption and Economic Offences (DCEO) has confirmed that it’s investigating the alleged theft but refused to give further details. Tholo Energy had the multimillion maloti contract to supply diesel to the mine while G4S provided security.
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A syndicate allegedly stole diesel worth about M53 million from Letšeng Diamond Mine through an elaborate scheme that spanned over months.
The syndicate is suspected to have included employees of Letšeng Diamond, Tholo Energy and G4S Security.
By the time the fraud was discovered in mid-2021 some 2,6 million litres of diesel had been stolen at the mine in Mokhotlong.
The Directorate on Corruption and Economic Offences (DCEO) has confirmed that it’s investigating the alleged theft but refused to give further details.
Tholo Energy had the multimillion maloti contract to supply diesel to the mine while G4S provided security.
Letšeng discovered the theft sometime in mid-2021 after noticing abnormally high consumption of diesel by its trucks over months.
The company launched an internal inquiry followed by the appointment of South Africa’s Ernst & Young and Lesotho’s Monare Forensics to conduct a forensic investigation. Monare Forensic however appears to have pulled out in the initial stages of the assignment.
In September 2021, Letseng’s then chief executive, Kelebone Leisanyane, announced the forensic investigation in a letter to Tholo Energy’s managing director, Thabiso Moroahae.
“The information obtained by Letšeng to date point to certain employees of Letseng, Tholo and G4S Security,” Leisanyane said.
“The extent of the incident in terms of the quantum of possible losses is considered material to the Fuel Supply Agreement currently in force between Letšeng and Tholo (The Agreement), and could potentially warrant suspension of the Agreement until investigations have been completed.”
Letšeng asked Tholo Energy to provide information that could assist in the investigation.
The information included the records of the seals or tags for all truck deliveries made by Tholo Energy to Letšeng from January 2020 to August 2021.
Letšeng wanted the names and telephone numbers of Tholo Energy’s drivers who delivered diesel to Letšeng during the same period.
It also wanted the names and contact details of Tholo Energy’s employees who might have had contact with Letseng’s employees responsible for diesel management.
Tholo Energy was also asked to agree to allow its employees to be subjected to interviews that may include polygraph assessment.
As the probe intensified the investigators requested further information from Tholo Energy, now focusing on the period between January 2020 and June 2021.
The information included Tholo Energy’s delivery notes and tracking records for each delivery, as well as information on the loading of the fuel truck at the relevant depot before being dispatched to Letšeng Diamond Mine’s Mini Depot at its Airstrip.
That the Mini Depot was now the focus of the investigation was clear from the email that Letseng’s Head of Operations, Motooane Thinyane, wrote to Tholo Energy’s Chief Operations Officer, Tumisang Thahanyane, in October 2021.
Thinyane is now the chief executive of Letšeng while Thahanyane has had a nasty fallout with Moroahae after being accused of stealing M40 million from Tholo Energy.
In that email, Thinyane told Thahanyane they were now “narrowing the investigation to the Mini Depot deliveries”.
Thinyane revealed that “the apparent fuel consumption by the mining trucks dropped significantly following the suspension of identified individuals in Letšeng operations”.
He also told Thinyane that the forensic investigations were “looking into all possible sources, including possible collaboration between Tholo Energy employees and Letšeng employees”.
He then requested Thahanyane to provide the records showing “traceability of the seals (or evidence that the trucks’ seals are not being tampered with after delivery at Letseng) from the point of delivery at Letseng, up to the point where the truck re-fuels at the depot”.
Thinyane said for the “initial quick assessment” Letšeng wanted the seal records for 25 deliveries in December 2020.
“This information is required urgently by our investigation teams, and submission/non-submission of such data may determine further course regarding the investigation and the diesel supply agreement,” Thinyane said.
On 22 October 2021, Letšeng suspended Tholo Energy’s contract. Leisanyane told Moroahae, in a letter, that Tholo Energy had not provided all the requested information.
Leisanyane said “due to the extent and seriousness of the irregularities” Letšeng was giving Tholo Energy notice to suspend the contract effective midnight Sunday 24 October 2021.
He said the purpose of the suspension was to minimize and contain “any further losses and harm to Letšeng pursuant to the investigation’s findings or irregular activities involving diesel deliveries” and to prevent “any external and undue interference with the finalization of the investigation”.
Moroahae responded four days later, querying the suspension and insisting that Tholo Energy had made full disclosure of the information requested.
He said Thahanyane had advised Letšeng that Tholo Energy “does not have information relating to the seals upon arrival at the depot/loading point”.
Moroahae explained that Tholo Energy’s agent in Durban was tasked with “verifying that the seals were still intact on arrival and then dispose them”.
This system, he said, was implemented to deter access into the tanks and avoid possible contamination. Moroahae however pointed out that this control system is not a contractual obligation.
Leisanyane responded by insisting that the suspension stands and telling Tholo Energy not to supply any more diesel.
This was followed by a flurry of letters between the companies’ lawyers over the next two weeks.
On 9 November 2021, Letšeng gave notice to terminate the contract with Tholo Energy.
In the notice, Leisanyane said the decision was based on Clause 18.5 of the contract which is referred to as the “No-fault Termination”.
The clause says: “This Agreement may be terminated by Customer upon giving the other Party at least three (3) months written notice of the date of the termination of the Agreement”.
The three-month notice ends on 15 February 2022, ending the relationship that started in 2018.
Tholo Energy roped in an arbitrator, a decision that triggered a legal battle that is still ongoing.
It’s not clear if the theft of diesel is linked to the bribes that Tholo Energy is alleged to have paid to an unnamed senior official at Letšeng Diamond over years.
Thahanyane’s explosive affidavit in his legal fight with Moroahae revealed how Tholo Energy made monthly payments, ranging between M150 000 and M200 000, to a senior official of Letšeng Diamond who had allegedly facilitated Tholo Energy’s contract with the mining company.
Thahanyane said the money was delivered in cash at the house owned by the official’s mother.
Staff reporter
