Connect with us

News

Fund in damaging legal brawl

Published

on

MASERU-A squabble over the appointment of a service provider has left the Public Officers Defined Contribution Pension Fund (PODCPF) in the throes of a damaging legal battle.

Tensions have been simmering over the past ten months, with the PODCPF’s board divided over the appointment of an administrator for the M7 billion fund whose nearly 40 000 members are government employees.
Matters came to a head on March 26 when the board appointed NBC Lesotho, a company that has held the contract since the Fund’s inception. Five of the nine-member board voted for NBC Lesotho while four backed Akani Retirement Fund Administrators.

The vote, which should have ideally resolved the matter, has triggered a legal fight that might drag on for months.
A day after the vote the Public Officers Defined Contribution Pension Association filed an urgent High Court application to block NBC Lesotho’s appointment.

Now Thabo Thulo, PODCPF’s principal officer, has cautioned that the legal battle could have a serious impact on the Fund’s operations.
Thulo makes the stern warning in his answering affidavit to the application filed by the association in March.

The association argues that NBC Lesotho’s appointment was illegal and illogical because its sister company, NBC Holdings, is embroiled in ‘malpractices’ in South Africa.
Of concern to the association is the NBC Holdings’ on-going legal wrangle with Chemical Industries National Provident Fund (CINPF).

Although the case in South Africa is yet to be finanlised the association insists that it makes NBC Lesotho unfit to manage the PODCPF. The association further points to forensic and due diligence reports that it says paint NBC Holdings in bad light.

Advocate Molefi Ntlhoki, the association’s lawyer, alleges that the board appointed NBC Lesotho “notwithstanding serious risks and concerns identified by the forensic audit reports and due diligence report”.
The association wants the court to block the board from signing a contract with NBC Lesotho pending the finalization of the case. It also seeks an order for the board’s decision to be “reversed, corrected and set aside as irrational and therefore unlawful and without an effect and force in law”.

Molise Chabana, the secretary general of the association, makes the same arguments in his affidavit.
Chabana says the 27 members of the association who have filed the case have a legal right to seek relief because of their interest in the PODCPF.
But Thulo, in his affidavit, tells the court that NBC Lesotho won the contract fair and square.

He argues that the application should be dismissed because only two of the 27 association members named as applicants are members of the pension fund.

The rest, Thulo says, left the pension fund and opted to take annuities with Metropolitan Lesotho.
“They have no interest whatsoever in the application and they are not entitled to any relief,” Thulo says.

“On this basis, the application in respect of those persons stands to be dismissed.”
Thulo says the board followed all procurement procedures before awarding the contract.

Giving a chronology of what transpired during the tender, Thulo says NBC Lesotho and Akani were shortlisted out of four companies after they had scored above the 70 percent threshold.
On the technical proposal NBC Lesotho scored 86.83 percent while Akani had 76.83 percent.

On the financial proposal NBC Lesotho charged M39.75 on each member per month while Akani quoted M35.
Thulo says on 24 November last year the evaluation committee recommended the appointment of NBC Lesotho but referred the pricing issue to the board.
The committee said its recommendation was based on the fact that NBC Lesotho was technically superior and was already familiar with the Fund’s operations.

Documents seen by thepost show that at the November 28 meeting some board members proposed a due diligence on both NBC Lesotho and Akani.
Minutes of that meeting reveal that there was a debate about that proposal, with some board members questioning the motive of having a due diligence when the bids had been evaluated and the preferred bidder had been recommended.

Some board members asked why there should be a due diligence when the issue to be decided was not the technical capacity of the companies but their pricing.

Others queried how the due diligence would affect the outcome of the evaluation and pointed out that such an exercise would amount to a re-evaluation of the bids.
The board however instructed the committee to define the parametres of the due diligence.

In December the committee established the parametres which it later presented to the board in January this year. The committee also appointed a firm to conduct the due diligence.

But Thulo says by that time the board already had all the information from the bidders, including NBC Holding’s issue with the CINPF in South Africa.
The due diligence was conducted over three days in mid-February and the committee discussed the report a few days later but was divided on who to appoint. Three backed NBC Lesotho and two supported Akani.

By that time it was clear that the board too was divided over the issue.
Those factions became clear when the committee asked the board to make the final decision at its extraordinary meeting on February 28.
A day before the meeting the chairperson of the board received a letter from Futho Hoohlo, a trustee, pleading with her to cancel the meeting because he had asked the Minister of Finance to intervene.

Board members Matheakuena Lekhoaba, Monaheng Matlatsi and Mofota Shomari also signed Hoohlo’s letter.
The four then boycotted the February 28 meeting which consequently failed to make a quorum.

Minutes of that meeting show that those who attended were annoyed that Hoohlo had approached the minister before the board received the evaluation committee’s recommendation after the due diligence.
Thulo, who is an ex-officio member of the board and does not vote, tells the court that members felt that the four had moved “prematurely to seek intervention and deprived the board statutory right to deal with the matters within its powers and responsibility”.

Hoohlo and company also boycotted another special meeting called to discuss their concerns.
When they eventually attended a board meeting on March 26, the evaluation committee presented its report but revealed that it was now divided on which company to appoint. Three favoured NBC Lesotho while two wanted Akani.

Thulo says each side presented its reasons for its preference.
NBC Lesotho then won the contract with five votes from the nine board members. Akani received four.

A day later the pensioners association filed the application to block NBC Lesotho’s appointment, arguing that the decision was unlawful.
Thulo also claims that even as the evaluation committee was working on its final report Akani did not have a trader’s licence. He says the company was still in consultation with the Ministry of Trade over the licence.
“NBC was already operational while Akani was not,” he says.

“Akani was still awaiting stakeholders’ consultation with the Central Bank of Lesotho. They were therefore not ready to perform the service.
Thulo also questions why board members who took part in the tender now disown the “democratic process”. Those board members, he adds, know that the process was fair and transparent.

“The board followed a democratic process. It requested the Evaluation Committee to look into the certain aspects of NBC Lesotho.”
He says Mahlatsi, the pensioner association’s representative on the board, “knows how the process was unfolding and there was no untoward conduct”.

Staff Reporter

Advertisement

News

A night of horror

Published

on

THE police arrived in Ha-Rammeleke, a Mokhotlong village, in the middle of the night.
They stormed one house and found a couple sleeping.

They then dragged the man out and ordered him to follow their instructions if he didn’t want to be killed. Their order was that he should scream while announcing to his neighbours that his wife was gravely ill. The villagers who responded to the man’s plea for help didn’t know that they were walking into a trap.

The police rounded them up as they arrived at the man’s house.

Their night of horror has just begun.

Dozens of men and women were frog-marched to the edge of the village.

The police assaulted the men with sticks and whips. They kicked others.

In the crowd was Tebalo Lesita, a 48-year-old Rastafarian with dreadlocks.

He was called to the front and ordered to act like a Rastafarian.

First, they said he should sing Reggae while shaking his head so that his dreadlocks would wave from side to side. He did and they laughed.

“They also ordered me to mimic Lucky Dube.”

Lesita says he only shouted like he was singing because, due to fear, all Lucky Dube’s songs he knew had slipped out of his mind.

“I just mumbled some words as if I was singing. I have never experienced such torment before.”

“I only kept saying ‘Ye ye ye!’”, he says.

They laughed again.

Meanwhile, the police were hurling insults at him.

“I was told that I was smelling rubbish in the mouth.”

Lesita says the police then instructed him to act as if he was having sex.

And when he said he was tired of the act the police ordered him to act as if he was ejaculating.

He did and his tormentors roared with laughter.

The police, Lesita says, wanted him and other villagers to confess that they knew men who had shot and killed a man earlier in the village.

Lesita says after the ordeal that lasted nearly an hour the police ordered him to pray. He claims his body is full of bruises, especially on the buttocks.

“My body is aching all over.”

Lesita says he wants to sue the police but doesn’t know where to start.

“I understand that my human rights have been grossly violated but I do not know which legal steps to follow,” he says.

A week after the assault, he still hasn’t sought medical help.

Nor has he opened a case against the police.

“I find it impossible to open the case against them. I will have to go to the police station to open a case,” he says.

“How can I open the case against the police at the police station?”

As a sheep farmer, Lesita says he cannot afford the taxi fare to travel to Mapholaneng to report a case at Tlokoeng Police Station.

Lesita says he cut his dreadlocks a day after the incident “because they have put me into serious problems”.

“I rue the day that I started growing those dreadlocks,” he says.

Police spokesman, Senior Superintendent Kabelo Halahala, confirmed that there was a police operation in Mokhotlong but said he didn’t know how it unfolded.

Incidents of the police terrorising villagers under the guise of fighting or investigating crimes are common in Lesotho.

It is rare for police officers involved in such incidents to be arrested or prosecuted.

Majara Molupe

Continue Reading

News

Anger over Chinese businesses

Published

on

FORMER Mining Minister, Lebohang Thotanyana, says Lesotho is shooting itself in the foot by allowing Chinese companies that win major construction tenders to import everything from China.

Thotanyana was speaking at the Basotho Business Empowerment Forum on Tuesday.

The forum was organised by the Micro, Small, and Medium Enterprise (MSME) Association.

Thotanyana told the forum that of all the Southern African Customs Union (SACU) countries, Lesotho is the one benefitting the least from hiring Chinese-owned companies for major infrastructure projects. 

 

Thotanyana said Chinese companies tend to “import everything save menial labour” in every government job they win.

 

“We only benefit minimally with the labour force,” Thotanyana said, adding that “more money goes back to the countries that have brought their own machinery”.

 

“This is exactly what is happening at the Polihali Dam which is under construction.” 

 

“There should be a value chain so that the economy grows.”

 

Tempers flared at the forum as local business owners accused the government of failing to protect them against Chinese businesses. 

 

The forum revealed the growing frustration among local business owners who feel the government is not doing enough to protect them against Chinese business muscling them out of sectors reserved for them. 

 

The local business owners criticised the government for failing to implement the Business Licensing and Registration Act 2019 that reserves certain businesses for indigenous Basotho. 

 

They told the Principal Secretary of the Ministry of Trade, Thabo Moleko, together with a handful of MPs in attendance, that their patience had worn out.

 

“We want our business from the Chinese and Indians,” Thobei Motlere, the president of the MSME Association said.

 

“We are not afraid of these Chinese,” he added, adding that they could approach them head-on.

 

“We want to see the Act implemented now, not tomorrow or any other time. We want to push them out of the business peacefully. We want peace.”

 

Motlere said they have been pushed out of business by the Chinese yet there is a law to protect them “against unfair competition”.

 

“We have elected you as MPs but you are doing nothing to save us from the competition yet there is a law in place,” Motlere said.

 

The MPs tried to respond to some of the issues people but they were booed and heckled. 

 

“This is not the right place to answer. You should address this in parliament, not here,” said one woman in the crowd. 

 

Some MPs walked out of the forum in protest but were eventually coaxed to return to their chairs. 

 

’Maremi ’Mabathoana, a street vendor, said the Chinese sell almost every item.

 

“We buy from their shops so that we can sell small items. But the Chinese also sell small items,” ’Mabathoana said.

 

“When we sell a sweet for M1, they sell it for 50c,” she yelled.

 

“When we sell apples for M4, the Chinese sell them for M2. This is unfair.”

 

Moeketsi Motšoane, the Mafeteng MP who is the chairman of the parliament’s Natural Resources committee, said he is also facing similar challenges in his home district.

 

Trying to calm the irked traders, Motšoane said he could bet that some people were being used by the Chinese to kick Basotho out of business.

 

“There are such people amongst you who are being used by the Chinese to knock Basotho out of business,” Motšoane said.

 

He told the Ministry of Trade to move swiftly to implement the Act.

 

“If you do not implement the Act, we will drag you before the committee to account,” he said.

 

 Moleko, the principal secretary of Trade,  promised to implement the law. 

Majara Molupe

Continue Reading

News

Labour unions in nasty fight

Published

on

TWO trade unions representing workers at Polihali Dam construction site have turned on each other.
Instead of fighting for better pay and conditions for members, the Construction, Mining, Quarrying and Allied Workers (CMQ) and the Lesotho Workers Association (LEWA) are locked in a nasty battle that could be linked to a fight over membership.

CMQ alleges that LEWA officials intimidated its members who wanted to vote for a proposed strike against companies working at Polihali Dam.

CMQ also accuses LEWA’s secretary general, Hlalefang Seoaholimo, of conflict of interest which it says renders him unable to effectively represent workers in their battles against employers in Polihali.

CMQ says Seoaholimo is working as a union leader and an employer at the same time. This, CMQ says, is because Seoaholimo’s company, Domino Blasting (Pty) Ltd, has been subcontracted by some companies working at Polihali Dam.

The allegations of intimidation and conflict of interest are part of the letter that CMQ’s secretary general, Robert Mokhahlane, has written to the Registrar of Trade Unions.

In that letter, seen by thepost, Mokhahlane pleads with the Registrar of Trade Unions to deregister LEWA over the alleged intimidation and Seoaholimo’s conflict of interest.

Mokhahlane tells the registrar that because of Seoaholimo’s shareholding in Domino Blasting, LEWA has “characteristics of a company, not a trade union”.

“At Polihali Dam construction, there (were) workers who were employed by Domino Blasting Services at various projects,” Mokhahlane alleges.

“They (Domino Blasting) have a long list of projects that have references and include some companies involved in the construction of Polihali Dam.”

Seoaholimo is one of Domino Blasting’s four directors and holds 300 of the 1000 shares in the company.

Mokhahlane tells the registrar that Seoaholimo cannot claim to be independently fighting for workers’ rights when his company is working with the same companies accused of unfair labour practices in Polihali.

He also accuses Domino Blasting’s human resource officer, Mpho Kanono, of being conflicted because she is also an official of the United Textile Employees (UNITE).

“Both the two officials (Seoaholimo and Kanono) are workers’ representatives within the Wages Advisory Board whereby Hlalefang Seoaholimo is the spokesperson of the workers,” Mokhahlane says.

Mokhahlane also accuses Seoaholimo of “intimidating workers who will be balloting for a strike action by encouraging LEWA members to observe and identify workers” who would participate.

He claims that Seoaholimo mocked a CMQ official who was mobilising workers for the strike at the construction site.

The Labour Code, which the registrar has been asked to invoke, says a union or employers’ organisation may be cancelled by the Labour Court on the registrar’s application.

Seoaholimo has however vehemently refuted allegations that his company is working at Polihali Dam. He told thepost that CMQ is in a campaign to tarnish his name and that of LEWA because “they are aware that workers do not want to join their union”.

He admits that he is a shareholder in Domino Blasting but insists that “as we speak now Domino Blasting does not have a job anywhere in Lesotho”.

“CMQ has to provide evidence that a company called Domino Blasting (Pty) Ltd is working and has any employees in Polihali,” Seoaholimo said.

“Domino Blasting does not even have an office anywhere in the country because it is not working anymore.”

“They should identify the people hired by Domino Blasting (Pty) Ltd among workers in Polihali.”

He said the company has not operated in Lesotho since 2016 when it completed a project. Seoaholimo, however, says he is aware of a South African company with a similar name working in Polihali.

“I as a person have nothing to do with that company,” Seoaholimo said.

He said it is true that Mpho Kanono used to work for Domino Blasting back in 2016 when it still had contracts but she has since left because “the company stopped working”.

“Mpho Kanono is an official of UNITE and has nothing to do with Domino Blasting at present moment.”

Staff Reporter

Continue Reading
Advertisement

ADVERTISEMENT

Advertisement
Advertisement

Trending