In today’s edition of our investigative series, we will show that Mr Semoli and Mr Letsoela brotherhood turned business partnership has been the single commonality in the investments of PODCPF assets from its formation in 2008. We further demonstrate that this duo has only been using different companies merely as vehicles to perpetuate their capture of the Fund, discarding them as soon as they no longer serve their interests and moving forward with another company.
We then ask a key question, will history keep repeating itself and what would be the vehicles to be used by the duo after the imminent collapse of Cadiant and Mergence?
The Public Officers’ Defined Contribution Pension Fund (PODCPF) was established under The Public Officers’ Defined Contribution Pension Fund Act of 2008. It is managed by a Board of Trustees that is appointed by The Minister responsible for Finance in consultation with the Minister responsible for Public Service according to section 6(2) of the Act.
The fund provides retirement benefits and related matters to permanent and pensionable Public Officers.
However past and present trustees and senior employees of Pension Fund have come forward with damning and alleged corrupt information about how one South African, Mr. Semoli Mokhanoi has managed to entrench himself and companies he has interest(s) in, at the Pension Fund since 2011, significantly prejudicing the Fund and members.
In this part five of eight investigative series, we look at the genesis of this capture, but before we do, let us recap on what this series has uncovered up to this point.
On the 28th of January 2024, Lesotho Tribune published a condemning investigative report that uncovered the shameless conflict of interest taking place among key service providers of the Public Officers Defined Contribution Pension Fund (PODCPF), specifically Cadiant Partners Consultants and Actuaries Lesotho and Mergence Lesotho.
The report divulged that Mr Semoli Mokhanoi is the Co-founder of Cadiant, which is the appointed investment consultant of PODCPF. The same Mr Semoli is also the Co-founder and Managing Director of Mergence Lesotho, which is the appointed investment manager of the same PODCPF.
For anyone who is wondering, the role of an investment consultant is to recommend and oversee the investment managers on behalf of the Fund. Simply, Cadiant was a referee and a player because Cadiant and Mergence were effectively the same company.
PODCPF is the biggest pension fund in the country with assets close to M12 billion and is the golden standard and most visible fund locally. The Pension Funds Act, 2019 under the responsibility of the Central Bank of Lesotho (CBL), dictates that under section 19(c), “appointed service providers shall avoid conflict of interest and act impartially”.
How is it possible that this clear conflict of interest went unchecked by the CBL for over six years, yet the same CBL regulates and oversees pension funds, investment managers, and investment consultants? A month has gone by since Lesotho Tribune published this law-breaking behaviour, yet no single word has been uttered by CBL on this consequential matter.
A lazy desktop research shows that Mr Semoli is indeed the owner of both Cadiant and Mergence as his professional profile on LinkedIn confirms this. It is unbelievable that CBL, with its supposedly rigorous fit and proper assessments and surveillance did not pick up this matter.
On the 18th of February 2024, this same newspaper published a damning report revealing that Cadiant Partners Consultants and Actuaries Lesotho is casually contravening the Pension Funds Act, 2019 by offering pension fund intermediary services without being regulated and licensed by the CBL.
The Genesis
In 2008 when PODCPF was established, Semoli Mokhanoi was the managing director of Symmetry Lesotho, and interestingly Tšepo Letsoela was an employee at Symmetry. At that time, since the fund was small, symmetry was providing, actuarial services, investment consulting and asset management.
During the period between 2008 – 2015 was a period of “empire building” as explained by a former trustee, who served at PODCPF during that time.
“Semoli was ruthless, he had unchecked political capital and decimated competition,” said our source.
The arrangement between Semoli, Letsoela and Symmetry collapsed in 2014 due to the aggressive nature adopted by Semoli, “Old Mutual then felt they can’t be associated with such a character, the reputation risk outweighed the benefits of their relationship…” said a source who is familiar with the situation.
Our sources allege that it is in 2014 when Semoli hatched a plan to bring in small managers, specialising in investment consulting and asset management. Semoli convinced Cadiant and Mergence, respectively that they will get appointed but in return he will deploy Letsoela in Cadiant, as a runner and he will hold the fort in Mergence.
