Mohloai Mpesi
THE Public Officers Defined Contribution Pension Fund PODCPF) has roped in security agencies to try and help it deal with its various crises.
The PODCPF has been enmeshed in various scandals and has so far been successfully interdicted from appointing a new Administrator. It has faced various allegations of mismanagement and corruption and of trying to recruit an unlicensed service provider to administer the Fund.
The PODCPF Principal Officer, ‘Mamotlohi Mochebelele, met with Lesotho Defence Force (LDF) commander, Mojalefa Letsoela, on Tuesday. Also in the meeting was Finance and Development Planning Principal Secretary, Nthoateng Lebona, the Lesotho Times can conclusively confirm.
According to our sources, Ms Mochebelele called the meeting to discuss “security threats” arising from the goings on at the Fund and what she described as “information security”. The details of these issues were to be discussed at the meeting; she had hinted in asking for the meeting.
The Lesotho Times has been reliably informed that Ms Mochebelele has also reached out to the National Security Service (NSS) and the Lesotho Mounted Police Service (LMPS) to assist with investigations into issues at the Fund.
But this publication can only conclusively confirm her meeting with Lt-Gen Letsoala on Tuesday
Ms Mochebelele could not be reached for comment as her mobile phone rang unanswered by the time of going to print last night. The Lesotho Times had wanted her to explain why they had roped in security agencies and what exact role these were expected to play?
Is the involvement of security agencies only limited to probing the leaking of information at the Fund or it involves other wider issues? We will update this story on our electronic media channels once we get her comment.
The Fund had been enmeshed in various crises. Its trustees have been accused of being captured by some service providers resulting in them doing the service providers’ bidding.
The Fund also faces the serious allegation of seeking to appoint a then unlicensed South African company, Fairsure to administer its M12 billion assets to replace the long-term Administrator, NBC Lesotho.
The patently illegal appointment has since been stopped by a court interdict won by NBC Lesotho.
In a letter to the Directorate on Corruption and Economic Offences (DCEO) asking it to probe the Fund yesterday, Basotho National Party (BNP) leader Machesetsa Mofomobe cited the “appointment of unlicensed service providers” as one of the key failures of the Fund.
“It has also become apparent that the Fund does not align itself with the Central Bank of Lesotho regulations, in particular the Pension Fund Act of 2019 which stipulates in no uncertain terms that service providers appointed should be licensed…. (by CBL),” Mr Mofomobe wrote in his letter.
Court processes underway have since revealed that the Fund appointed Fairsure as the new Administrator of the Fund at a time the controversial South African company, linked to the corruption that led to the collapse of that country’s VBS Bank, had not even been licenced by the CBL.
Such high-stake malfeasance is almost incomprehensible. It has only fuelled speculation that some in the Fund could have had some vested interests to protect by appointing Fairsure.
The Public Officers’ Defined Pensioners Association (PODCPA), which represents bodies of civil servants that make up the Fund, had also been furious that a report of an investigation into NBC-Lesotho, was leaked to the media before it could be shared with the PODCPA which had asked for the probe.
PODCPA had penned a letter to Ms Mochebelele earlier this year directing that the Fund should engage the security agencies to probe the leakage of the report by the South African law firm, Bowmans Inc.
PODCPA said it was disappointed that it had initiated the probe but the report had not yet been released to it officially.
Detractors of NBC Lesotho had been hoping to use the report to imperil the company’s reputation and demand its dislodgment as Administrator in favour of Fairsure. Others are still doing so, as evidenced by a Public Eye story last week, claiming that the Bowmans Report had “fingered” NBC Lesotho “in swindling pensioners of M20 million”.
The story is patently false. The Bowmans Report – which the Lesotho Times has already serialised – does not say any criminal acts were committed (see story below). “Swindli and “fraud” are criminal acts. There is no mention of such in the report.
PODCPA spokesperson, Ithabeleng Phamotse, told the Lesotho Times last month, that her organisation had asked the fund to engage the services of Lesotho’s security and intelligence institutions to investigate among others leakage of the Bowman’s Inc report, other classified Fund information as well as “misconduct” by various service providers including asset managers.
The Lesotho Times could not establish whether the latest engagements between the Fund and the security agencies was a direct result of this intervention or whether the agencies would look at all the issues raised by the PODCPA.
Meanwhile, BNP leader, Mofomobe, wants the DCEO to investigate all the alleged fraud and corruption at the Fund.
Mr Mofomobe’s letter to the DCEO dated 13th March 2024, accuses the Fund of failing to “demonstrate accountability, transparency” and of “poor decision making”.
Mr Mofomobe has already submitted a motion to the National Assembly, calling for an ad hoc committee to investigate the Fund.
Mr Mofomobe said the Pension Fund’s “malpractice would potentially plunge the country into a serious financial crisis if left unchecked”.
“As a member of parliament entrusted among others to play an oversight role and hold institutions of government accountable, it has come to my attention that there have been allegations of malpractices at the Public Officers’ Defined Contribution Pension Fund (PODCPF) and the Specified Officers’ Defined Pension Fund (SODCPF).
“These include lack of transparency and accountability, awarding of contracts to unlicensed service providers, apparently flawed decision-making processes within the Board, court cases and negative publicity in the media. These have consequently affected the reputational image of the Fund,” Mr Mofomobe wrote.
He accused the Fund of failing to oblige with Central Bank of Lesotho regulations as it had approved a bid from an unlicensed company (Fairsure) to administer the Fund in place of NBC-Lesotho.
Mr Mofomobe said it was either Ms Mochebelele, the principal officer “does not do her job properly to furnish counsel to the Board of Directors (trustees)” or the trustees did not listen to good advice.
“…It is either the Board does not heed advice and or she (Ms Mochebelele has failed in her duty to ensure compliance with the laws and policies guiding the Fund….”
The several cases lodged against the Fund were a sign of its failure to perform its fiduciary duties.
“The Fund has recently been under negative publicity through media reports. The Fund only released a statement after ravaging reports had taken root.
“This leaves a lot to be desired as to the competence of the administration of the Fund in performing its role of protecting members’ interests.”
“It is on this background that I urge DCEO to investigate thoroughly these allegations which have a potential to plunge the country into an economic or financial crises,” he said.
