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Massive Corruption Exposed in Lesotho’s M12 Billion Pension Fund

A shocking report by the parliamentary Public Accounts Committee (PAC) has unveiled widespread corruption and mismanagement at Lesotho’s M12 billion Pension Fund. The committee’s investigation has revealed that some trustees have accepted kickbacks from service providers competing for contracts, while others have compromised decision-making due to their close relationships with the Fund’s Principal Officer.

At the center of the scandal is AKANI Retirement Fund Administrators, a South African company accused of bribing trustees to secure contracts. The PAC report names Monaheng Mahlatsi, Thandy Mabaso, and Mpontšeng Pama-Letsoela as the trustees involved in corruption and misconduct. The committee recommends their immediate removal from the Board of Trustees and calls for a thorough investigation into Semoli Mokhanoi, Managing Director of Mergence Lesotho, who is accused of possible corruption and conflict of interest.

The report also vindicates NBC Lesotho, the Fund’s administrator, which was previously accused of overcharging the Fund. The PAC found that the accusations were baseless and that NBC was still providing services to inactive members, known as "Nil Contributors," despite the Fund’s refusal to pay for these services.

The PAC’s investigation has exposed a web of corruption and cronyism, with some trustees prioritizing their personal interests over their fiduciary duties. The committee has recommended a complete overhaul of the Fund’s procurement policies and the appointment of an independent chairperson to lead the Board.

The report’s findings have significant implications for the future of the Pension Fund and the thousands of public officers and pensioners who rely on it. The PAC’s recommendations aim to restore transparency, accountability, and good governance to the Fund, ensuring that the interests of its members are protected.

In response to the report, Principal Officer ‘Mamotlohi Mochebelele has rejected the findings, claiming that she was not given a chance to respond to the allegations. However, the PAC’s report is clear: corruption and mismanagement will no longer be tolerated, and those responsible will be held accountable.

As the Fund embarks on a journey of reform and recovery, it is essential that the government and regulatory bodies take swift action to implement the PAC’s recommendations. The future of Lesotho’s public officers and pensioners depends on it.