. . . say they want “to manage finances well’’
Mohloai Mpesi
THE Lesotho Electricity Company (LEC) board has slashed acting allowances of the Executive to cap them at 10 percent of the salary for the substantive position.
This is line with LEC’s compensation policy of 2021, instead of the outdated 2015 policy they have been following.
As a result of this change in policy, for example, an executive who has been earning up to M170 000 a month will now earn only M17 000 monthly.
The 2015 acting allowance policy provides for acting officials to earn the difference between the substantive position salary and that of the acting role, whereas the updated 2021 policy caps acting allowances at 10 percent of the substantive position’s salary.
The massive reduction is meant to close the yawning income gap between the executive and lower ranking officers.
LEC Administration Manager Makhetha Motŝoari said yesterday the LEC has decided to follow the 2021 compensation policy as opposed to the outdated 2015 acting allowance policy.
The Public Accounts Committee (PAC) had in June this year questioned the rationale of the parastatal’s board of director’s decision to apply the 2015 acting allowance policy instead of the updated 2021 version.
Those are acting in the positions of the suspended executives include: Managing Director, Mohlomi Seitlheko; Corporate Secretary, Advocate Khotso Nthontho; Head of Corporate Services, Moipone Mashale; Head of Strategy and Growth, Limpho Mokhesi; Head of Information Technology, Sakhele Mapetja; Head of Finance, ‘Makabelo Matsoso; Head of Customer Experience, Lebohang Mohasoa; Head of Legal, Risk and Compliance, Selebalo Ntepe; Head of Internal Audit, Thato Matsoso; and Head of Operations, Serolo Tikoe.
The Acting Managing Director, Nathaniel Maphathe, came under fire during the PAC sessions when he was accused of manipulating his appointment for personal gain.
According to the PAC revelation, Mr Maphathe ensured he received M170, 000 monthly as a salary for acting under the 2015 acting allowance policy, whereas he is rightfully entitled to only M17, 000 under the 2021 updated policy which stipulates that acting officials should receive only 10 percent of substantive holder’s salary.
Mr Maphathe had always argued before PAC that there was no board resolution officially adopting the 2021 policy.
“We reviewed past documents and minutes of previous meetings but did not find any resolution approving the 10 percent allowance. Therefore, there was no official board meeting held on this matter.
“However, we do acknowledge the large discrepancy, and the board will review the issue,” Mr Maphathe said then.
Under the 2021 policy, he would have been entitled to only M12, 500, which is 10 percent of the M125,000 salary attached to the substantive corporate services role.
Mr Makhetha told the Lesotho Times yesterday that the Board of Directors had resolved to apply only 10 percent of the acting allowances in order to close the gap between the senior officers and lower ranking staff.
“A decision is that the Executive should no longer receive a difference it was earning, because that way they were receiving increment of around 70 percent according to the structure. So, they have decided that the executive should get 10 percent,” he said.
Asked about the 2015 policy which the board of directors and managing director advocated before the PAC, he said the board has the powers to change policies.
“Policies are approved by the board, so the board has powers to change the policies. It is similar to when the parliament wants to change the law, they can just change, they don’t need anyone’s approval.
“They have agreed with the beneficiaries that they should get 10 percent in order to close the gap with the lower ranks; it should not be such a big gap,” he said.
He said it is also done “to manage our finances well.”
“You will remember that the same executive, when people received an increment of six percent, did not receive it because theirs was high,” he said.
However, he said he does not know whether Mr Maphathe will also earn 10 percent or continue earning allowances dictated by the 2015 compensation policy as he is on a special contract unlike other executives.
“I don’t know about the Acting Managing Director because he is not employed. He has a special contract; he is different from an officer who is employed but acting in that position.
“It is going to apply to those acting in executive positions. Normally it is managers or senior managers,” he said.
