News

Vodacom, LCA row over fees

Published

5 years ago

February 18, 2020

MASERU – A disagreement over an annual fee has soured relations between Vodacom Lesotho and the Lesotho Communications Authority (LCA).
Now Sekhametsi Investment Consortium, the local company that owns 20 percent of Vodacom Lesotho, has entered the fray.
In a statement to shareholders this week Sekhametsi insinuated that the LCA was targeting Vodacom Lesotho.
What seems to have triggered the quarrel was how much Vodacom Lesotho should pay in annual fees to the LCA.

The annual fee is four percent of the mobile network company’s net operating income.
It is based on the annual audited financial statements mobile network companies are required to submit to the regulator.
thepost understands that the fight started after the LCA gave Vodacom Lesotho the bill for the annual fees.

Vodacom Lesotho disputed the figure, saying it was based on wrong calculations of its net operating income.
The company argued that the LCA had based its calculations on the net operating income that included Mpesa, its money transfer service.
Their reasoning was that income from Mpesa services should be discounted because it was not earned from core network operations. The company said Mpesa was a financial product, not a telecommunications one.

The correct calculation, the company argued, should be based on what the company earned from voice and data services.
The LCA however had a different interpretation, arguing that additional services like Mpesa formed part of the company’s income because they are driven by its network operations.
As the haggling continued Vodacom Lesotho missed the deadline to pay the fees. And when it eventually did, the regulator slapped it with an M8.2 million penalty for non-compliance.
Vodacom Lesotho then sued to challenge the penalty, arguing that it was unfair.

The High Court is likely to hear the case in March. Sekhametsi says the LCA overcharged Vodacom Lesotho by M8 million after refusing to allow the company to discount the Mpesa revenue from the net operating income from which the fee was to be charged. This, says the consortium, has deprived Vodacom of a net profit of M14 million.
That translates into M2.8 million lost in potential dividends to Sekhametsi’s shareholders.

An attempt to resolve the matter out of court seems to have fallen through and matters appear to have escalated since then.
Late last year the regulator issued a statement, announcing the penalty on Vodacom Lesotho.
Sekhametsi tells its shareholders that that statement has a “reputational damage” on Vodacom and further strained relations between the company and the LCA.
Such statements are however not unique to Lesotho.

In other countries regulators routinely name and shame companies that offend regulations.
Press statements announcing companies that would have failed certain regulator tests are not uncommon.
The only difference in Lesotho is that the LRA has not been known to publicly wield the stick.
In December the LCA slapped Vodacom Lesotho with two enforcement letters for allegedly breaching its Universal Access Fund obligations and keeping auditors who are allegedly not independent enough.

On the Universal Access Fund the LCA alleged that Vodacom Lesotho failed to submit a performance report on the contract it has with the regulator to supply internet services to 60 schools across the country. Vodacom Lesotho argued that the contract was not specific on what report should be submitted.
It has however submitted the report and Sekhametsi says it hopes the LCA “will not impose another penalty”.
On corporate governance the LCA took issue with the fact that Vodacom Lesotho’s chairman is related to a partner of the company’s auditors.
This, the regulator’s is said to have insisted, meant that there was no independence.

Vodacom Lesotho’s Managing Director, Phillip Amoteng, met LCA chief executive, Mamarame Matela, yesterday to discuss some of the issues.
Last night Amoteng refused to reveal what was discussed, only saying “this was one of the routine meetings that companies have with the regulator”.
thepost however understands that one of the issues on the agenda was a promotion Vodacom Lesotho wants to launch.
Amoteng was keen to downplay the alleged dispute, pointing out that Vodacom Lesotho was “constantly engaging the LCA on regulatory issues”.
Senior LCA officials were also reluctant to characterise the differences as a dispute.

They said these were simple and routine regulatory issues that “should not be a cause for panic”.
One of them said such interaction between mobile companies and regulators “are common all over the world and across other sectors”.
“There is nothing sinister with the way the LCA had handled Vodacom affairs. All is in good faith,” he said.
Sekhametsi too treaded cautiously. It said the regulator’s proceedings “need to consider the wider socio-political and economic context”.
“The arbitrary restraint of Vodacom Lesotho rights, as well as Telecoms Sector as a whole, could have negative impacts on the Sekhametsi shareholder value chain,” the consortium says in the statement.

It says it was taking a multi-pronged approach to resolve the impasse.
It says Vodacom Lesotho and its shareholders will assure the regulator of the company’s commitment to prioritise compliance with the licence conditions.
The investment company says it will seek a “fair regulatory enforcement framework” from the LCA.
Sekhametsi also said it will ask Communications Minister Thesele ’Maseribane to help ease the tensions between the LCA, Vodacom Lesotho and other network operators.

This, it says, is in addition to the minister setting a coherent policy direction for the sector.
Last night Sekhametsi’s chairman, Leboela Letebe, said he did not want to speculate on social media rumours that there was a political hand in the dispute.
He said the consortium was not aligned to any political party.

“We are only interested creating investment opportunities for Basotho from all walks of life,” Letebe said, adding that “we work with the government of the day”.
“We only seek a conducive investment climate. We are clear about our commitment to good corporate governance,” he said.
“We assist our strategic investment partners with compliance matters. We therefore encourage negotiations between Vodacom and the regulator.”

Staff Reporter

News

Knives out for Molelle

Published

2 days ago

January 13, 2025

The Post

MASERU

KNORX Molelle’s appointment as the Director General of the Directorate on Corruption and Economic Offences (DCEO) in February 2023 could have been illegal.

The Law Society of Lesotho has told Prime Minister Sam Matekane that Molelle was appointed without being admitted as a legal practitioner in Lesotho, as required by law.

The society claims the information came from a whistleblower on January 2 and was corroborated by its roll of legal practitioners in Lesotho.

The society says the appointment violates section 4 of the Prevention of Corruption and Economic Offences Act 1999 which states that a person shall not be appointed as the DCEO director general unless they have been admitted as a legal practitioner in terms of the Legal Practitioners Act.

In the letter, Advocate Ithabeleng Phamotse, the society’s secretary, tells Matekane that this requirement “is not a mere procedural formality but a substantive qualification essential to the lawful appointment of the Director General”.

“The absence of such qualification fatally impairs the appointment ab initio, rendering it null and void from the outset,” Advocate Phamotse says in the letter written on Tuesday.

The society argues that if left unaddressed the illegality undermines the credibility, effectiveness and legality of the DCEO’s operations and exposes the kingdom to serious risks, including challenges to the lawfulness of decisions and actions made by Molelle.

“Should it be confirmed that the appointment was made in contravention of the mandatory legal requirements,” Advocate Phamotse said, “we respectfully urge you to take immediate corrective action to rectify this glaring irregularity”.

Advocate Phamotse tells the prime minister that if the appointment is not corrected, the society would be “left with no alternative but to institute legal proceedings to protect the interests of justice and uphold the rule of law in Lesotho”.

“We trust that you will accord this matter your highest priority and act decisively to avert further damage to the integrity of our governance structures.”

The Prime Minister’s spokesman, Thapelo Mabote, said they received the letter but Matekane had not yet read it yesterday.

Matekane is on leave and is expected back in the office on January 14.

Questions over the validity of his appointment come as Molelle is being haunted by the damaging audio clips that were leaked last week.

The clips were clandestinely recorded by Basotho National Party leader, Machesetsa Mofomobe.

In some of the clips, Molelle appears to be describing Matekane and his deputy Justice Nthomeng Majara as idiots. He also appears to be calling Law Minister Richard Ramoeletsi a devil.

In other clips, he seems to be discussing cases. thepost has not independently verified the authenticity of the audio clips.

Staff Reporter

News

Massive salary hike for chiefs

Published

2 days ago

January 13, 2025

The Post

MASERU

THE government has increased the salaries for traditional leaders by a massive 88.5 percent.

This means that a village chief not appointed by a gazette will now earn M3 001 a month, up from the previous salary of M1 592. That means village chiefs will now earn an extra M1 409 per month.

A village chief, or headman, appointed by a gazette has moved from M1 966 to M3 567 per month.

Above a village chief is one with jurisdiction over a small cluster of villages, a category three chief, who now moves from M3 768 to M5 181 per month.

A category four chief, known as ward chief, has moved from M4 455 per month to M7 993.

The category five chief, who reports directly to a principal chief, will now earn M10 674, up from M9 939 per month.

There is no increment for principal chiefs.

The government says the budget for chiefs’ salaries has moved from M129.4 million to M208.3 million annually.

The hike follows a series of discussions between the Lesotho Workers Association, representing the chiefs, and the Ministry of Local Government and Chieftainship.

The revised salaries will be implemented with effect from April 1, 2025.

According to the settlement agreement, a discussion about raising the lowest salary of M6 000 for the lowest-ranking chiefs will be revisited in October 2025.

Chiefs who spoke to thepost have expressed satisfaction with the hike, saying it will significantly improve their lives.

Chief Mopeli Matsoso of Ha-Tikoe in Maseru said his previous salary of M1 500 per month would now be doubled, which would improve his life and help provide smoother services to the community.

He stressed that they used to close the offices while going out looking for jobs to compensate for their little salaries.

“Now the people will get smoother services,” Chief Matsoso said.

“The offices will forever be open,” he said.

Chief Matsoso said the salary hike will also serve as a motivation for other chiefs.

Chief Tumo Majara of Liboping, Mokhethoaneng, also expressed his gratitude.

Chief Majara acknowledge the positive impact the salary review would have, especially as a new officeholder.

“I guess we are all happy, that review will help a lot,” he said.

The Principal Chief of Thaba-Bosiu, Khoabane Theko, said the salary increase of chief is a welcome move by the government.

“I’m yet to study how the new salary structure looks like. But I welcome it as a good move by the government,”Chief Theko said.

Nkheli Liphoto

News

Maqelepo says suspension deeply flawed

Published

2 days ago

January 13, 2025

The Post

MASERU

Motlatsi Maqelepo, the embattled Basotho Action Party (BAP) deputy leader and Tello Kibane, who was the party chairman, have rejected their suspension from the party arguing it was legally flawed.

The BAP’s central executive committee on Tuesday suspended Maqelepo for seven years and Kibane for five years. The suspensions became effective on the same day.

The party’s disciplinary committee which met last Wednesday had recommended an expulsion for the two but that decision was rejected with the committee pushing for a lengthy suspension.

Maqelepo’s suspension will end on January 7, 2032 while Kibane’s will run until January 7, 2030.

Their suspension letters from the BAP deputy secretary general Victoria Qheku, say they should not participate in any of the party’s activities.

“In effect, you are relieved of your responsibility as a CEC member and BAP deputy leader,” Maqelepo was told in the letter.

“You were found guilty by default on all charges and the committee recommended your immediate dismissal from the party,” the letter reads.

On Kibane, the verdict states that the committee decided to mitigate the recommended sanction by reducing his suspension to five years.

“In the gravity of the charges, the suspension affects your membership in the BAP parliamentary caucus from which you are removed as a chairman.”

They were suspended in absentia after they refused to attend the disciplinary hearing, which they said was illegal.

In response to the suspension, Maqelepo wrote a letter addressing the BAP members in general, defying the committee’s decision to suspend them.

He has called for a special conference, appealing to party constituencies to push for it, citing the ongoing internal fight that includes the leadership’s decision to withdraw the BAP from the coalition government.

Maqelepo also said the central executive committee is illegally in a campaign to dissolve committees in the constituencies and replace them with stooges.

He reminded the members that there is a court case pending in the High Court seeking an interdiction to charge them in the party’s structures without approval of the special conference that he is calling.

He said the party leadership should have awaited the outcome of the case before proceeding with any disciplinary action.

“The party that is led by a professor of law continues to do dismissals despite the issue being taken to the courts,” Maqelepo said.

The party leader, Professor Nqosa Mahao, is a distinguished professor of law.

Maqelepo said they would write the central executive committee rejecting its decision to suspend them, saying they will continue taking part in party activities.

He said their fate in the party is in the hands of the special conference.

He appealed to all the party constituencies to continue writing letters demanding the special conference.

Both Maqelepo and Kibane received letters on November 28 last year inviting them to show cause why they should not be suspended pending their hearing.

They both responded on the following day refusing to attend.

Maqelepo, Kibane, Hilda Van Rooyen, and ’Mamoipone Senauoane are accused of supporting a move to remove Professor Mahao from his ministerial position last year.

They were part of the BAP members who asked Prime Minister Sam Matekane to fire Professor Mahao, who at the same time was pushing for the reshuffling of Tankiso Phapano, the principal secretary for the Ministry of Energy.

When Matekane ignored Professor Mahao’s demands, the latter withdrew the BAP from the coalition government much to the fierce resistance of the party’s four MPs.

Maqelepo started touting members from constituencies to call for a special conference to reverse Professor Mahao and the central executive committee’s decision.

The central executive committee issued a circular stopping Maqelepo’s rallies but he continued, with the support of the other MPs.

In the BAP caucus of six MPs, it is only Professor Mahao and ’Manyaneso Taole who are supporting the withdrawal from the government.

Nkheli Liphoto