Lesotho: Parliamentary Committee Shows Corruption at M12 Billion Pension Fund

…Names sinister trustees who ranking got kickbacks

–Calls for their expulsion from Board of Trustees

–Slates Akani and Mergence’s Semoli Mokhanoi for impropriety

The massive corruption at Lesotho’s M12 billion Pension Fund has been laid naked in a file by the parliamentary Public Accounts Committee (PAC).

One of the most Fund’s trustees, per the file, ranking permitted kickbacks from carrier providers competing for contracts from the Fund.

Some trustees are industry associates and guests of the Fund’s Predominant Officer, tasked with running its day-to-day affairs, ensuing in compromised resolution making.

The PAC recommends the expulsion of three compromised trustees from the Fund’s Board of Trustees.

At the centre of the corruption at the Fund is an unscrupulous South African company, AKANI Retirement Fund Administrators, that has been accused of bribing trustees of the Public Officers’ Outlined Contribution Pension Fund (PODCPF) in a articulate to ranking carrier provider contracts.

Monaheng Mahlatsi, Thandy Mabaso, and Mpontšeng Pama-Letsoela are cited by the PAC as the trustees particularly interested by corruption and misconduct at the Fund.

The PAC furthermore requires a thorough investigation of Semoli Mokhanoi of Mergence Lesotho, one in every of the carrier providers. Mr Mokhanoi is accused of conceivable corruption over his involvement with various carrier providers who may possibly perhaps well ranking to unruffled finally be unbiased of every to foster transparency and efficient oversight.

AKANI Corruption

“Several trustees were allegedly involved in receiving bribes from service providers competing for contracts with the Fund…,” the PAC file, launched in parliament final week, states.

“Monaheng Mahlatsi allegedly permitted gifts from AKANI in exchange for influencing the awarding of an administration providers contract….

“Matheakuena Lekhoaba allegedly made irrational choices in prefer of AKANI. While it’s unclear whether he got incentives, his actions raised considerations.

“Mr Hoohlo, a former trustee, allegedly accepted bribes from AKANI to help secure an administration contract. Both He and Mr Mahlatsi were involved in taking the Fund to court… (in a bid to assist AKANI)”

The PAC requires the dismissals of Mr Mahlatsi and Ms Mabaso from the Board of Trustees for corruption. It furthermore requires the expulsion of Ms Pama-Letsoela for impropriety.

AKANI has been mired in allegations of corruption not best in Lesotho but in South Africa where it administers a fund for native authorities workers. It got the contract by technique of sinister skill, per experiences in News 24, a revered Johannesburg basically based digital publication.

Mergence, Cadiant Companions and Semoli Mokhanoi

The PAC file the Fund’s trustees to “urgently initiate an unbiased and entire investigation into the intense allegations attractive Mergence Investment Managers Lesotho and Cadiant Companions Consultants and Actuaries Lesotho (Pty) Ltd, significantly specializing in the position of Mr Semoli (Mokhanoi).

“The investigation may possibly perhaps well ranking to unruffled explore the beefy extent of his involvement with the Public Officers’ Outlined Contribution Pension Fund (PODCPF) and the National College of Lesotho Outlined Contribution Pension Fund (NULDCPF).

“These measures aim to enhance governance, restore confidence in the Fund’s administration, and ensure that the interests of public officers and pensioners are protected.”

Mr Mokhanoi, the Managing Director of Mergence Lesotho, became as soon as accused by the Lesotho Tribune of involvement in wholesale corruption at the Fund and of taking pictures the trustees of the PODCPF to sway their choices. His South African headquartered asset management company had thus secured a surely in depth quantity of the Fund’s assets (M1,5 billion) to regulate.

The PAC needs Mr Mokhanoi fully probed.

“The Committee furthermore uncovered a excessive war of pastime attractive two of the Fund’s key carrier providers. It became as soon as established that Mr. Semoli (Mokhanoi), a director of Mergence Investment Managers Lesotho–the asset manager accountable for overseeing basic investments of the Fund–furthermore holds a directorship in Cadiant Companions Consultants and Actuaries Lesotho (Pty) Ltd, the Fund’s appointed funding advisor.

“This dual involvement raises profound governance and ethical considerations, significantly pondering about that funding consultants are expected to independently expose the Fund on the efficiency and suitability of asset managers, at the side of Mergence.

“Such overlapping interests contradict the principles of good governance, particularly in the context of fiduciary responsibility, independence, and transparency. The failure to identify and resolve this conflict may have compromised the integrity of advice and investment decisions made on behalf of the Fund.”

This skill that, the PAC recommends a beefy probe of Mr Mokhanoi, whom it mentions by his first title (Semoli).

Vindication of NBC Lesotho

The Lesotho Situations had furthermore previously reported extensively on the big corruption at the PODCPF warning that it risked compromising the advantages of beneficiaries.

The Lesotho Situations had uncovered an evident smear advertising and marketing campaign in opposition to the Fund’s administrator, NBC Lesotho, which became as soon as incorrectly accused of overcharging the Fund. This became as soon as all a ruse to rob a glimpse at and veil up the actual corruption and conflicts of interests that had prolonged plagued the Fund.

The PAC file vindicates our reporting on the matter and effectively clears NBC Lesotho of impropriety.

The trustees interested by smearing NBC – it now appears to be like from the PAC file – had been on the payroll of AKANI. That they had instigated the canard that NBC had been overcharging the Fund on providers it rendered on the so called “Nil Contributors”. These are pensioners whose accounts are idle for a unfold of causes at the side of deaths, resignations, or transfers yet they unruffled remain on the database.

The PAC acknowledged that unless NBC became as soon as given accurate information by the Fund, there is nothing it’ll attain to comely the database off these idle accounts. This skill that, it shall be legitimate for NBC to payment for its providers on these accounts because it unruffled manages them. The PAC may possibly perhaps well not understand why the Fund argued it had no accountability to pay NBC for its management of these Nil Contributors.

“The Fund’s secretariat (led by Principal Officer) has failed in its duty of ensuring that the Administrator (NBC) and Actuary receive accurate membership data. This failure has led to an ongoing dispute between the Secretariat and the Fund Administrator, NBC, regarding the fees to be charged for non- active members “NIL Contributors”–people whose contributions are idle but remain on the Fund’s database.

“In order for NBC to conclude the accurate membership status of these members from the system, it has to get instructions from the Secretariat and if such instructions are missing the Administrator is unable to accurately administer such members’ liabilities in respect of the PODCPF’s financial statements,” the PAC states in its complete vindication of NBC.

NBC’s possess convincing arguments

The PAC fully acknowledged the challenges that NBC faced in managing the Fund as a consequence of inaccurate membership data which became as soon as equipped by the authorities of Lesotho by contrivance of the Fund’s secretariat. It acknowledged it had been satisfied by NBC’s arguments.

It slated the authorities for failing to conform with its appropriate obligations to furnish NBC with the relevant monthly data and particulars of people, as required by the Public Officers’ Outlined Contribution Fund Act of 2008, Portion 19(1).

“Late or missing contributions result in some civil servants appearing as “Nil Contributors,” meaning they are listed in the fund, but their contributions had been stopped at some time for causes that ranking not been disclosed to the Administrator.

“NBC states convincingly that even supposing the contributions for Nil Contributors ranking stopped being paid, it unruffled gives administration providers to these people, as their advantages that remain unpaid signify liabilities in the fund’s financial statements that ranking a appropriate away impression on the financial soundness of the fund and its steadiness sheet for valuation functions.

“Govt contests that NBC may possibly perhaps well ranking to unruffled not be charging fees for that category of people. The volume of money that NBC claims from the fund is spherical 16 million Maloti. This quantity represents the total fees in appreciate of nil contributors that the fund stopped paying to NBC from March 2019 to date hereof.

“The reasons for the fund to refuse to pay this debt is very unclear as it still accepts that NBC is still providing the services even for those members, however the Fund fails to justify why it would think that such a service can be offered free of charge,” the PAC states in remarks that clearly leaves egg on the Fund’s secretariat.

The PAC file is a beefy vindication of the Lesotho Situations’s outdated experiences of big rot at the PODCPF and how NBC became as soon as unfairly centered while the actual culprits of corruption had been left untouched.

Trustees Pama-Letsoela and Ms Mabaso, who signify native authorities workers and public carrier workers respectively, are not even speculated to take a seat on the Board in the main station, per the PAC. They owe their areas on the Board to rigging of the preference job.

They worked collectively to “manipulate the selection process and get themselves appointed to the board….” The PAC file states.

Extra worryingly alternatively, the PAC alleges that Pama-Letsoela and one other trustee, Accountant Fashioned Likhapha Mahase, are halt guests and industry associates with halt links with the PODCPF Predominant Officer, ‘Mamotlohi Mochebelele.

This, per the PAC, may possibly perhaps well furthermore lead to board choices and procurement activities favouring corporations linked to the trio.

“Ms. Pama-Letsoela and Ms. Mahase are business partners, which creates a compromising situation for the Fund, as their interest could (sic) compromise Board decisions. Evidence provided to the Committee shows that both are members of the Investment Committee of the board and as such they can easily synchronize their votes,” the file states.

“Evidence suggests that Ms. Pama-Letsoela and Ms. Mahase have close personal ties with the Principal Officer that can lead to procurement activities favouring companies linked to these trustees.”

The PAC directs – in the file – that Predominant Officer Mochebelele, who’s accountable for the day-to-day management of the M12 billion Fund, be investigated for allegedly withholding obligatory PODCPF information to the trustees.

The PAC further suggests that Ms Mochebelele’s competence to toddle a fund of that magnitude be assessed, and that circulate be taken if malpractice is established in opposition to her. This effectively casts doubts on her competency levels.

The damning PAC file on the corruption and mismanagement at the PODCPF and the Specified Officers’ Outlined Contribution Pension Fund (SODCPF), had been precipitated by a 2021 Auditor Fashioned’s file, which had raised excessive considerations about the funds’ ability to satisfy future obligations as a consequence of underfunding along with various ubiquitous experiences of corruption and maladministration at the Fund.

The Speaker of the National Assembly, Tlohang Sekhamane, had therefore requested the PAC for a probe of the Fund.

Corruption

According to the PAC file, Pension Fund representative Mahlatsi allegedly permitted gifts from carrier provider AKANI in exchange for influencing the award of an administration contract.

Mr Mahlatsi became as soon as previously accused by the PAC of taking bribes from AKANI to enable the pension fund administrator to toddle the National College of Lesotho (NUL) Pension Fund.

The file furthermore accuses trustees Ms Pama-Letsoela and Ms Mahase of being industry companions with halt ties to the Predominant Officer, Ms Mochebelele, main to procurement choices favouring their very possess interests.

The PAC has thus instructed the immediate elimination of Ms Mahlatsi, Ms Pama-Letsoela, and Ms Mabaso from the pension fund boards, further directing that their replacements be chosen by contrivance of a clear and inclusive job to be obvious that moral public representation.

“Mr Mahlatsi, Ms Pama-Letsoela, and Ms Mabaso should be removed from the Board, and their replacements should be selected through a transparent and inclusive process that ensures proper public officers’ representation, in line with section 9(2) of the Act,” the file reads.

The file furthermore accuses Matheakuena Lethoba, the Director of Remuneration and Advantages in the Public Carrier, of developing “irrational decisions” that favoured AKANI. It is unclear whether Mr Lethoba got any incentives for these actions, but the file states his choices raised basic considerations.

Moreover, the file alleges that musty trustee, Futho Hoohlo, furthermore permitted bribes from Akani in assert to relief the corporate accumulate an administration contract with the fund.

Every Messrs Hoohlo and Mahlatsi, had been in 2019-2020 actively interested by dragging the PODCPF to court docket to compel it to terminate its contract with its longtime administrator, NBC-Lesotho, in favour of AKANI.

Adding to the controversy, the Predominant Officer Ms Mochebelele, has been accused of withholding basic information from the Board, at the side of a really powerful Forensic Audit Report, hampering the ability of trustees to create instructed choices.

The file furthermore printed that some trustees did not gather key feedback from carrier providers, further undermining their oversight obligations. The PAC identified Ms Mochebelele’s station of job as “the source of these delays and omissions”.

Recommending pressing circulate, the PAC directed that the Predominant Officer may possibly perhaps well ranking to unruffled be obvious that all relevant experiences and information are shared with the Board in a effectively timed and entire formula.

The trustees may possibly perhaps well ranking to unruffled gather beefy variations of basic documents, at the side of forensic audits and restore provider evaluations, effectively before resolution-making meetings.

The PAC has furthermore instructed that an unbiased audit be performed to assess Ms Mochebelele’s efficiency to restore effectivity, transparency and give a rob to governance at some level of the Fund. Slouch may possibly perhaps well ranking to unruffled be taken in opposition to her if her efficiency became as soon as chanced on to be heart-broken.

The PAC further suggests that the Fund engages exterior, unbiased evaluators with the specified skills to supervise the assortment of carrier providers.

The Fund’s latest tender evaluation job may possibly perhaps well ranking to unruffled be reformed to eliminate bribery and undue affect.

“Service providers should be selected based on technical merit and value for money, rather than personal interests,” the file notes.

The file recommends that all latest procurement activities be attach on ranking while the Board revisits the procurement coverage.

Mochebele rejects the PAC findings

Contacted by the Lesotho Situations, Ms Mochebelele acknowledged the PAC had been unfair in its findings in opposition to her, because it had “never given me a chance to respond to the allegations made against me”.

Per Ms Mochebelele, the PAC would request people of the Pension Fund Secretariat, at the side of herself and the Head of Honest, Sempe Moshoeshoe, to head away the room while they puzzled the many trustees.

The secretariat people would best be called support when the PAC wanted them to supply clarifications, after which they had been despatched out of the room again, she acknowledged.

This skill that, Ms Mochebelele acknowledged she became as soon as by no means phase of the actual discussions before the PAC.

“I wish to place on record that I have taken note of the contents of the Public Accounts Committee (PAC) report tabled this week, and I reiterate my full respect for the constitutional oversight mandate of Parliament,” Ms Mochebelele acknowledged.

“However, I must firmly and unequivocally reject the insinuation that I withheld crucial information from the Board of Trustees.”

She described such an assertion as “not only misleading, but deeply regrettable–particularly given that I was never afforded the opportunity to respond to these allegations during the Committee’s deliberations.”

Ms Mochebelele acknowledged principles of equity and natural justice dictate that no individual may possibly perhaps well ranking to unruffled be condemned unheard.

“Throughout the PAC process, I have remained cooperative, transparent, and committed to accountability. I stand by the integrity of my actions and reaffirm my readiness to clarify any outstanding matters should I be granted a fair and proper platform to do so,” she acknowledged.

Chaiperson of the board unqualified

The Chairperson of the Board, Nthoateng Lebona, the PS for finance, had not been cleared by the Central Financial institution of Lesotho to steer the Fund. She had failed to post the total required documents for clearance even supposing she had been afforded an extended grace length, the PAC important. As such it became as soon as unfit to steer the Fund. It instructed the appointment of an unbiased chairperson to toddle the Fund, noting it became as soon as a war of pastime for a PS of finance, tasked with deducting and remitting pensioner instalments to the Fund to be its chairperson as effectively.

“It is mandatory for all trustees to get a clearance through a fit and proper assessment which is conducted by the Central Bank of Lesotho as the regulator. However, evidence suggests that the Chairperson has failed to submit necessary documents before the deadline, and she has also failed to submit even when the period was extended, however all the other members had complied with this requirement. This non-compliance undermines the Fund’s legality and affects the legitimacy and credibility of the decision- making of the Board,” the PAC stated, while slating the Central Financial institution for its laxity in performing its regulatory oversight functions over the Board.

Factionalism

The PAC furthermore slammed the factionalism in the Board which had seen trustees combating to protect their interests.

“These internal divisions–repeatedly aligned along private or pastime-basically based lines–ranking created a polarized atmosphere that severely undermines the Board’s ability to design as a cohesive governance physique.

“As an alternative of specializing in the fiduciary accountability to act in the very best pastime of Fund people, some Trustees seem to prioritize factional alliances, main to biased resolution-making, resistance to accountability, and delayed or deadlocked resolutions.

“Such division is detrimental to effective governance. It erodes trust among Board members, compromises transparency, and hinders the Fund’s ability to respond decisively to operational or financial challenges. Moreover, when factions dominate the Board’s activities, decisions may no longer be based on objective assessments of professional advice, but rather on alliances and conflicts of interest, exposing the Fund to increased risk and possible regulatory breaches”

Suspend Procurement

The PAC recommends that the Fund suspend all its procurement of contractors or carrier providers for now to allow for reforms of its procurement insurance policies to eliminate corruption. It recommends the engagement of exterior, unbiased evaluators with the specified skills to supervise the assortment of carrier providers.

“The latest tender evaluation job may possibly perhaps well ranking to unruffled be reformed to eliminate bribery and undue affect, ensuring that carrier providers are chosen in step with technical merit and designate for money rather than private interests.

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