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The Citizen
16 hours ago
- Business
- The Citizen
How SA's Lesotho water project costs ballooned from R8bn to R53bn
More than R20 billion was due to inflation linked to the delays. The cost of the second phase of the Lesotho Highlands Water Project (LHWP) to deliver water to South Africa's industrial heartland and generate hydropower for Lesotho has increased by R45 billion. In 2008, phase 2 was projected to cost R8 billion. By 2022, this had ballooned to R42 billion. It now stands at R53 billion, raising questions about governance, oversight and accountability. 'Despite Minister [Pemmy Majodina]'s public acknowledgement that a probe into the escalating costs of Phase 2 of the LHWP would be conducted, no further details have been shared with Parliament or the public,' Democratic Alliance (DA) deputy spokesperson on water and sanitation Stephen Moore noted in a statement issued by the party last week. Moore has now filed a Promotion of Access to Information Act (PAIA) application to the Department of Water and Sanitation (DWS). ALSO READ: Here's how many millions SA sends to Lesotho each month for water This follows two unanswered letters, the first sent on 8 May. DWS spokesperson Wisane Mavasa said the May letter was not sent directly to the minister or director general. 'Unfortunately, the letter was not acted upon by the officials that it was sent to,' she said, adding that the minister would respond 'shortly'. DWS says the price escalation is the result of various factors, including years of delays, treaty complications and market fluctuations. Regarding the DA's PAIA application, Mavasa said the department has 30 calendar days to respond, and it would do so within the legal timeframe. Oversight gaps The South African Portfolio Committee on Water and Sanitation raised concerns about the cost of the project with the Auditor-General of South Africa (AGSA) at a sitting on 6 May, chaired by the DA's Leonard Basson. The meeting flagged weaknesses in governance created by the dual-implementation model between the Trans-Caledon Tunnel Authority (TCTA) and the Lesotho Highlands Development Authority (LHDA). Delays have pushed completion from 2019 to 2028, affecting the delivery schedule and future phases of the project. The committee also noted constraints stemming from the 1986 treaty preventing AGSA from auditing LHDA directly, 'leaving South Africa reliant on Lesotho's audit structures'. But, says Mavasa, the Lesotho Highlands Water Commission (LHWC), has equal representation from both governments, had 'full access to the cost records of the LHDA', and had received detailed information about the delays. The committee also criticised the royalty arrangement, which it said obliges South Africa to continue payments to Lesotho even when water deliveries are interrupted. READ MORE: Completion date for R53 billion Lesotho Highlands Water Project postponed again Other concerns included limited local procurement, dominance of foreign contractors, and opaque financial flows. Some MPs went as far as calling for an immediate funding suspension, citing mismanagement and treaty flaws. However, AGSA cautioned against such a drastic move, warning of legal consequences. It recommended treaty reforms, including joint audits, instead. Mavasa says South Africa and Lesotho have agreed to review the treaty, but the 'matters for review' have yet to be decided. She said South Africa has already set up its review team. Submission of the Lesotho government's team is awaited. Lesotho's Finance Minister Retšelisitsoe Matlanyane told Parliament in February that the government intended to pursue 'the overdue review of the treaty' to negotiate a better deal for Lesotho. How R8 billion became R53 billion Mavasa outlined the project's financial journey in detail. The original 2008 feasibility study produced a preliminary R8 billion estimate – excluding inflation, currency shifts, contingency allowances, and modern environmental and social safeguards. Construction of the main works was expected to start in 2013 and deliver water to Gauteng by 2019. However, she said the main contracts were only awarded in 2022 because negotiations with Lesotho took longer than expected. The situation worsened with years of administrative and procedural delays. 'The Phase 2 agreement was signed in August 2011. 'It then took 14 months for the RSA Parliament to ratify the Phase 2 agreement and a further seven months for the Lesotho Parliament to ratify the agreement after the ratification by the SA Parliament,' said Mavasa. READ MORE: Municipal water crisis 'nothing to do with bulk water supply', says minster at LHWP reopening After Lesotho's 2013 change of government, the agreement was subjected to fresh scrutiny, adding further delays, according to Mavasa, who also pointed out that between 2013 and 2022, the DWS had five different ministers and 11 director-generals, a turnover that slowed decision-making. There were also financing complications. Funders raised concerns over procurement processes for the main contracts and requested that they be tendered afresh. The covid pandemic also disrupted preparatory work, pushing back the award of main contracts. In October 2022, the LHDA projected a R42 billion completion cost – incorporating contract prices, social and environmental programmes, foreign exchange effects, and administrative cost of managing the project. More than R20 billion was due to inflation linked to the delays, said Mavasa. In October 2024, the figure rose to R53 billion. The department attributed this to: R4.2 billion from boosting the contingency provision in line with international good practice from R3.3 billion in 2022 to R7.5 billion in 2024. R5.4 billion for additional social obligations requested by Lesotho, such as rural water supply and road infrastructure – not yet approved by the LHWC but included in the LHDA's projections. R1.7 billion in price escalations, design changes, and contractor claims linked to delays, including work-permit issues. Governance fixes and audits According to Mavasa, the project cost and time overruns have been a major concern for DWS and Minister Majodina. She said LHDA has developed a plan to minimise any further delays and cost overruns. She said LHWC will appoint a multidisciplinary team of experts to conduct management audits of contracts. Although the project is about 50% complete, she said two primary contracts are behind schedule. 'However, the LHDA is executing a turnaround plan to avoid further delays and recover lost time.' READ MORE: Trump gunning for Lesotho: SA sees opportunity for 'closer collaboration' In 2024, Mavasa said the department had established a governance committee comprising the department, the TCTA, and the South Africa delegation to the LHWC, which meets monthly to review progress. Mavasa said the DWS director-general and the principal secretary of the relevant department in Lesotho hold ad-hoc and quarterly meetings to address issues arising from the project. Unresolved issues are escalated to the ministers. Lesotho Minister of Natural Resources Mohlomi Moleko said he could only respond next week as he is outside the country. This article was republished from GroundUp under a Creative Commons license. Read the original article here.
Eyewitness News
22-04-2025
- Eyewitness News
Fight over fish in Lesotho's Katse Dam
Pheello Seafo says he was beaten up by police last year because he was fishing in the Katse Dam in Lesotho's Highlands. Seafo, a fisher from Likheleng village in the Ha Lejone area, says a vehicle from the Lesotho Highlands Development Authority (LHDA) stopped near where he was fishing with four others. Police officers came out of the car and asked the men what they were doing. 'We responded that we were fishing. They asked what we were using, and we said hooks. They told us they would torture us if they found nets with us.' 'They mistook one of the lines for a net, began beating us with sticks, and left us there,' he said. Katse Dam was built as part of Phase One of the Lesotho Highlands Water Project, through which Lesotho exports water to South Africa, earning M3.5-billion (R3.5-billion) annually in royalties. But the local fishers, who have traditionally caught yellow fish and trout to sell to passersby, say they are battling to survive. 'Mathabo Thibeli's case is one of the few that ever came to court. A few years ago, Thibeli says, she was arrested by armed soldiers in a boat. With guns pointed at her, she was accused of stealing from the government. 'They ordered me to leave the net. The soldiers used their guns to assault me,' she said. 'The net was heavy as I had caught so much fish. They beat me with sticks and gun butts on my back while I pleaded that I was just trying to support my family.' She and another villager were kept in a police cell for three days. 'We were charged and fined M100 each, which we paid, and we were freed.' In other cases, fishermen say they are beaten, their fish are confiscated and then they are sent home. RESTRICTIVE FISHING LAWS Molise Mare, a community councillor from Likheleng village, grew up fishing in the Malibamatšo River, now submerged under Katse Dam. He remembers that at first the dam's construction improved their lives. 'With the new road infrastructure, urban buyers came for our fish. We raised prices, made profits, and people built houses,' he told GroundUp. But the prosperity was short-lived. 'Everything changed when the LHDA imposed restrictive fishing laws,' Mare said. 'We were told we could only catch two fish a day. That was a blow for us because fishing was our livelihood.' Refiloe Ntsohi, the LHDA Senior Officer responsible for Biodiversity, said the Lesotho Highlands Water Project (Reservoirs) Fishing Regulations govern fishing at Katse Dam. The regulations, based on national fishing laws, prohibit commercial fishing, impose daily catch limits, and regulate fishing tools. 'The regulations allow only four fish per household per day,' she said. The daily quota was intended to ensure households had enough to feed their families, she said. But due to growing demand for fish in Lesotho, some villagers have begun selling their catch outside the dam's catchment area and some are now using fishing nets to catch large quantities of fish. 'Those with resources use nets to catch more, threatening the fish population. This also denies others who can't afford nets the opportunity for sustainable subsistence fishing,' said Ntsohi. She said there are rumours that some Chinese buyers are supplying nets to local fishers to increase their haul. 'With unregulated net use, even the most productive fish groups are being caught. This puts the entire fish population at risk of extinction,' Ntsohi said. LHDA Environment Manager Palesa Monongoaha denied any abuse by soldiers or police. Fish patrols were conducted by boat to identify and confiscate illegal nets, she said, accompanied by security forces, she said. Monongoaha said women officers on patrols sometimes encountered hostility from men. Stones had been used to block the road one woman officer was using. 'Since then, we've requested backup from security forces during patrols,' she said. 'We use whichever is available at the time, either police or soldiers. But we have never received any reports of human rights violations or torture.' She said all patrols are documented, and no reports have ever mentioned gunshots or abuse. 'Most of the time, we use boats and do not chase after people who run away. We also do not use vehicles for patrols,' she said. 'If anyone had been tortured by soldiers, it would have been reported. I say that with confidence,' Monongoaha added, suggesting that some of the complaints may come from people whose net-fishing operations have been disrupted. 'It is simply not true that they were tortured,' she insisted. 'Only two soldiers accompany patrols,' she said. 'It's not like there's a heavily armed troop. It now appears as if we have a bad relationship with the fishers, but that is not the case. We hold regular meetings and training sessions on subsistence fishing.' Monongoaha acknowledged that there had been court cases involving illegal fishing, where fish were handed to the police as evidence. However, she said court rulings had not been effective, so the LHDA had stopped pursuing legal action. Obtaining permits to fish is costly and difficult, the local fishers say. Pheello Seafo of Likheleng said a return trip from Malibamatšo to Katse at the LHDA offices for a permit costs M120. He said a two-week licence is M100, while a month's licence costs M200. 'It's hard to afford these fees when we are prohibited from selling fish and have no other jobs,' Seafo said. The harsh terms push villagers into illegal fishing, or force them to give up fishing altogether. Thibeli had a permit, but she says she was beaten and arrested for exceeding the daily limit with a net. 'We need to sell fish to survive, and nets help us catch more,' she said. In 2019, Tomosolo Thibeli says, he survived multiple assaults and gunfire incidents while fishing. 'One morning, when an LHDA vehicle appeared, we had to run and hide,' he told GroundUp. 'Shots were fired, but we ran for our lives.' A few days later, Thibeli says, soldiers and police captured him and two boys from his village while they were fishing again. 'They forced us to crawl on our knees up and down the hill, beating us as we crawled over sharp stones,' he said. 'My knees have never been the same. The pain worsens in winter.' The two others have given up fishing, but Tomosolo Thibeli refuses to do so. 'I won't leave my home or resort to stealing while my village has these resources,' he said. 'I will die fishing in this dam.' 'Matsekuoa Thibeli says she has been fishing since 2018 and could make up to M1,500 in a day. 'One time the police came. We ran away, leaving our fish by the road. They took the fish with our containers and left.' Villagers also accuse LHDA employees and police of seizing their fish only to keep it for themselves. Confiscations reportedly spike before major weekends and holidays as the police and LHDA employees go home. Responding to allegations that LHDA staff had confiscated fish for personal consumption last year, Ntsohi said there had been no patrols in the area last year. 'So, it can't be true if people claim this happened last year.' SCRAMBLE FOR FISH BONES The struggle for access to fish has driven villagers to fight over fish bones and fish heads discarded by SanLei Premium Trout, a commercial fish farming company at Katse Dam. These remnants have become a vital protein source for many. SanLei chief executive Dewald Fourie told GroundUp that the company had provided over 880,000 'high-protein fish heads to the surrounding communities' worth M434,000 in 2024. But the handouts from SanLei have led to violence. In 2023, a fight over fish heads turned brutal when a villager was stabbed. 'There's never enough for everyone,' said Malieketso Ramokoatsi, a village committee member. 'People grab as much as they can without considering others who are more vulnerable.' 'There was an unfortunate incident in 2023 when some villagers fought among themselves for a share of the fish heads and bones. It was so bad that one of them got his belly cut open with intestines left out,' said Ramokoatsi. SanLei's compliance officer, Relebohile Ntoi, confirmed the violent incidents. 'One of our drivers distributing fish heads was even threatened with a gun when trying to organise orderly distribution of fish heads and bones at Khohlo-Ntšo … There were fights everyday with some having not got anything while others filled over ten buckets,' Ntoi said. As part of their licence requirement to farm in Katse Dam, Ntoi said the LHDA required them to submit a community benefit strategy and, 'in that strategy, we included fish heads distribution'. She said instead of throwing away the fish heads, 'we decided it would be a good source of protein for the community in this catchment for people who can't afford protein'. Initially distributed daily at the SanLei plant, the fish heads were later delivered to villages on a rotating schedule as Ntoi says the crowds of villagers who came for the fish were disrupting SanLei's operations. To avoid further fights in the villages, the fish heads are delivered to schools. Monongoaha confirmed that the distribution of fish heads is part of SanLei's community strategy. 'Nutritionists say the fish head is the most nutritious part, so instead of throwing them away, we said they should be distributed to combat malnutrition in the catchment,' she said. She said SanLei attaches a monetary value to the fish heads in their reports on community benefits. 'As the only company in Lesotho doing primary fish processing, they produce many fish heads—more than the market can absorb,' she said. Asked whether LHDA was concerned that communities were not receiving whole fish, Monongoaha said, 'Let's put it this way: SanLei is a business and their sole purpose is to make profit,' she said, saying expecting SanLei to give out whole fish would be like 'asking a hotel owner to feed the community for free on certain days'. Responding to complaints that local people can no longer fish freely as they did before the dam's construction, while foreign companies profit, Monongoaha said, 'These companies do not harvest naturally occurring fish from the dam. They import eggs, hatch them, and keep the fish in cages. If there is any restriction on traditional fishing, it is not related to the companies. In fact, the dam has created a favourable environment for fish to multiply.' Monongoaha said the LHDA monitored the fish population in Katse and Mohale dams. 'We've been collecting data for over 14 years now. The aim is to attract investors who can partner with local communities to fish sustainably, so that the fish can be sold and benefit the local people,' she said. But villagers like Litaba Khanare are not convinced. 'Foreign businesses benefit from our waters, while we are left with nothing,' he said. 'If our government cared, it would support community-run fish projects to benefit us directly.'
