The Lesotho Highlands Development Authority (LHDA) has been ordered by the Lesotho High Court to pay M89.9-million to 20 community associations within 90 days, following lengthy disputes over compensation linked to the Katse and Mohale dams. The ruling was delivered on 20 October 2026 and marks a significant step in addressing arrears dating back to 2013.
The compensation amounts awarded to the affected communities, mostly from the Thaba-Tseka district, range from M848,000 to M16.2-million. This payment is part of reparations related to losses suffered due to the construction of dams under Phase 1 of the Lesotho Highlands Water Project, which has significantly impacted local livelihoods.
The dispute over compensation started in 2013 when LHDA halted the second tranche of payments without prior consultation with the communities. On 19 March 2025, the High Court ordered LHDA to compensate the Bobete villagers, impacted by the Katse Dam project. The Court of Appeal later dismissed LHDA’s appeal on 7 November 2025, ruling that the decision to stop payments was procedurally unfair and unlawful.
According to court findings and reports by GroundUp, the halt in compensation payments violated due process, and the LHDA must clear outstanding amounts. An ombudsman report released in March 2026 outlined that Phase 1 compensation arrears exceeded M142-million by the end of 2025. LHDA’s own 2025 financial statements estimated compensation liabilities could rise from M146.7-million to over M236-million.
While the total compensation already disbursed stands at about M168 million, the exact breakdown of amounts for each community association awaits final confirmation. The M89.9-million court-ordered payment reflects an 8% increase over what was owed since 2013 due to halted payments. These compensation delays relate to losses in grazing land, access to firewood, fishing, wild vegetables, and medicinal plants experienced by the communities affected by the water project.
The Lesotho Highlands Water Project has been pivotal in supplying water to South Africa but has left unresolved social and financial grievances among local populations. The recent court orders highlight the ongoing struggle of affected communities to receive fair and timely compensation for decades-old damages.
An official LHDA statement, quoted by local news outlets, noted that the specific compensation amounts are still being finalised even as the authority complies with the court order. Independent reporting and official releases confirm the settlement deadline of 90 days from the 20 October ruling.
This long-standing dispute underlines the challenges faced by cross-border infrastructure projects in balancing development goals with community rights. A Cape Flats News journalist will monitor developments as communities await the release of funds and further clarifications on compensation distribution.