. . . says she was rewarded for “cleaning up” adverse audit report
. . . allegedly shares family ties with board chairperson
Mohloai Mpesi
THE Public Accounts Committee (PAC) has accused the Lesotho National Development Corporation (LNDC) of hiring an unqualified Chief Internal Auditor as payback for allegedly “cleaning up” an adverse 2021/2022 audit report.
This emerged during a PAC session this week, where it was revealed that LNDC appointed ’Mapaballo Rantsane, who was formerly employed at the Office of the Auditor-General (OAG), as the corporation’s Chief Internal Auditor starting March this year.
PAC described the appointment as a “kickback” for compiling a clean audit report for LNDC when she was working at OAG.
PAC’s scrutiny stems from Ms Rantsane’s previous role at OAG where she was responsible for auditing LNDC and had initially issued a disclaimer audit report for the corporation for the year 2021/2022.
A disclaimer audit report is the worst statement an Auditor-General can make as it means they cannot express an opinion on the accuracy, fairness, or validity of an entity’s financial statements.
Remarkably, she later compiled a clean report for LNDC, and even before it could be officially released, she had secured the plum job at the corporation.
During the session, LNDC was summoned to address concerns raised in the Auditor-General’s report.
The session was chaired by PAC Chairperson ’Machabana Lemphane-Letsie, alongside Democratic Congress (DC) legislators Thabiso Lekitla (Mekaling) and Lephoi Makara (Malimong).
Other MPs present included Lesotho Congress for Democracy (LCD) Proportional Representation member Mamello Phoolo, Alliance for Democrats (AD) ’Maboiketlo Maliehe and All Basotho Convention (ABC) Montoeli Masoetsa.
LNDC was represented by interim Chief Executive Officer Molise Ramaili, Corporate Services Director Thabang Busa, Property Development Director Rethabile Mdee, and Ms Rantsane herself.
During questioning, Mr Lekitla asked Ms Rantsane if she was related to Principal Secretary of Trade, Industry, and Business Development, Palesa Matobako, who also chairs the LNDC board.
“She is a distant relative. We share the same maiden surname,” Ms Rantsane responded.
Ms Lemphane-Letsie expressed PAC’s suspicion that Ms Rantsane was offered the job as a form of kickback for “cleaning up” LNDC’s messy audit.
“Our suspicion is that the appointment was improper, unless it was a payback to Ms Rantsane. How do you offer someone a lucrative job while they were still auditing you? With such a bad audit, you then hire that person to produce a clean audit? No. You must convince us it wasn’t a payback,” Ms Lemphane-Letsie said.
“You audited LNDC — the first report was a disclaimer, then suddenly it’s clean. We take this (appointment) as a reward for your work. The Auditor-General says the work was bad, but you declare it clean after taking office. It looks like by giving you a job they are thanking you for cleaning up LNDC when it was messy.”
PAC also revealed that Ms Rantsane did not pass the psychometric test for the position.
“You did not pass the psychometric test. There was someone more qualified. Why did they choose you over someone better? This practice undermines accountability and misuses Basotho’s money,” Ms Lemphane-Letsie said.
The committee also established that Ms Rantsane did not meet the minimum qualifications required for the corporation’s Chief Internal Auditor at the time of her application.
The required credentials include a Certified Internal Auditor qualification, a master’s degree in Internal Audit or Accounting, or Chartered Institute of Management Accountants certification. When asked which of these she possessed, Ms Rantsane admitted she did not hold any.
Regarding experience, Ms Rantsane said, “I was Internal Audit Manager at FNB Lesotho for five years and Chief Audit Executive at the Lesotho Millennium Development Authority (LMDA) for three years. I applied because I believed I had equivalent qualifications . . .”
Mr Masoetsa raised concerns about LNDC’s credibility in the eyes of investors.
“You are undermining investor confidence. Investors first examine a country’s security and the Auditor-General’s reports. When a company like LNDC engages in questionable hiring, what message does it send? A recommendation should be made that Ms Rantsane be removed, and the board be held accountable,” Mr Masoetsa said.
The session was then postponed to next Monday, after PAC cited the corporation’s failure to submit the special reports requested.
Ms Lemphane Letsie said LNDC was showing unwillingness to cooperate with the committee, despite being given ample time to provide complete documentation.
Among the reports requested by the PAC are details on salary structures, international trips, and the process hierarchy for awarding certificates to companies.
PAC also wanted LNDC board members and the recruitment committee to appear before it but LNDC said they had other engagements and could only be available on Monday next week.
The committee was originally set to hold LNDC hearings from Tuesday to today (Thursday), but these had to be deferred to next Monday.
