Katse Dam, Lesotho: A prominent trout farming operation on Lesotho’s Katse Dam, SanLei Premium Trout, is facing accusations of failing to adequately contribute to a crucial environmental fund meant to support local communities grappling with the dam’s ecological impact. Despite claiming substantial investments in community projects, the company’s financial contributions to the Catchment Resilience Fund (CaRe Fund) have been minimal and largely misdirected.
SanLei Premium Trout, a subsidiary of South Africa’s Mergence Asset Managers, operates what it boasts as “the biggest trout farming operation in Africa,” producing 1,000 tonnes of trout annually, with plans to double production by 2030. However, its involvement in addressing the environmental challenges faced by communities surrounding the Katse Dam, built to supply water to South Africa, has come under intense scrutiny.
The CaRe Fund was established to incentivize local Khokhoba farmers to adopt sustainable rangeland management practices, addressing issues like overgrazing and soil erosion exacerbated by the dam’s construction. Mergence’s impact report outlined the fund’s purpose: to provide financial incentives for community-led environmental projects.
However, according to Khokhoba village committee member ‘Malieketso Ramokoatsi, SanLei’s contribution of a mere 5,000 Maloti (R5,000) in 2018 was not used for its intended purpose. Instead, the funds were reportedly diverted to small loans and the construction of a village chief’s office.
“The fund has collapsed despite its potential to benefit the village,” Ramokoatsi lamented. “Even the equipment for rangeland and wetland management was vandalised.”
SanLei’s compliance and environmental officer, Relebohile Ntoi, initially claimed the company contributed M60,000 (R60,000), but later acknowledged that only M5,000 was allocated to the community. She attributed the rangeland management project’s implementation to USAID, stating that SanLei’s role was primarily to “partner” and provide incentives.
However, Ramokoatsi countered that all climate change mitigation efforts were funded by USAID, not SanLei. The collapse of the USAID-funded project in 2018 left a void, with village chief Molapo Khethisa stating, “The Americans just disappeared, and the project collapsed.”
The Lesotho Highlands Development Authority (LHDA), responsible for regulating activities in the dam’s catchment area, has yet to respond to questions regarding SanLei’s obligations and its role in holding the company accountable. SanLei CEO Dewald Fourie also failed to provide comment despite multiple requests.
Meanwhile, local residents like ‘Mamolapo Khethisa are grappling with the dam’s environmental consequences. “These storms have become more frequent since the construction of the dam, resulting in the loss of crops and soil,” she said. The dam has also altered local weather patterns, with frost arriving earlier and damaging crops.
The accusations against SanLei highlight the complex relationship between corporate operations and local communities in large-scale infrastructure projects. The company’s minimal contribution to the CaRe Fund and the alleged misdirection of funds raise serious questions about its commitment to environmental responsibility and community support.
