MASERU- One Member of Parliament, Montoeli Masoetsa told the Pension Fund Principal Officer, ‘Mamotlohi Mochebelele that Pension Fund is bankrupt.
“Some of us come from cooperate world, we have worked with funds in South Africa, you have to be very specific when answering us because these answers that you came here prepared to give us, which honorable Thabiso Lekitla warned you about will no longer apply now, you have met a different scenario now,” said Masoetsa.
He indicated that, “One can observe that these people know nothing of what they are talking about, they have no idea of the statistics they are talking about and that this issue of deficit shows that this thing of theirs is bankrupt.”
Moving on, Masoetsa said the question is how are they going to manage this bankruptcy, looking at other issues like investments. He asked if there is any different plan to change this situation.
“The credible Principal Officer is supposed to have all these things that show that their investments, and whether they took money and invested it to Liberty and the other invested elsewhere. You are supposed to have that with you and present it to us now indicating that without the M200 million from the government if you can push from 5 years from now there will be a difference, by so doing we will be convinced unlike now that you are seated there, relaxed saying that the government has given you guarantee of M200 million for 10 years,” said Masoetsa.
He further stated that the P.O should be doing that as she is responsible for all this and she should be dealing with it everyday unless they have put wrong people in wrong places.
All these Masoetsa said at the Public Accounts Committee in the presence of the PAC Chairperson, ‘Machabana Lemphane-Letsie, and honorableMachesetsa Mofomobe who had asked in motion is parliament that the committee should look into Pension Fund books.
Pension Fund through its P.O, Mochebelele andPrincipal Secretary Finance, Nthoateng Lebona, while reading their report to the committee they showed that there is a deficit in the fund. This deficit is described as a situation or a danger that if by any chance the fund has to close, members of the fund will not be able to get their funds.
Mofomobe then asked what was the difference between a deficit and a debt, making an example that if the government was to give the fund all the amount that is a deficit, will the fund still have a deficit.
The reply was that the fund will have zero deficit. In the report it showed that for the two financial years the government has been boosting the fund with M200 million but the deficit instead of decreasing, it increased. Mochebelele clarified that without the government’s M200 million it means the deficit is estimated to havebeen higher than it is.
The PAC adjourned without answers from the Pension Fund committee and they were ordered to go and find answers, invite all service providers in the next meeting so that all answers are available and clarity is given.
