What has now been proven beyond any reasonable doubt is that indeed Mergence, Cadiant and Akani were capturing the entire pension fund industry. Early this year, this newspaper ran a an investigative series uncovering serious allegations of malpractice and corruption at PODCPF, where we reported that Mr Semoli Mokhanoi deeply entrenched himself in the pension fund industry by effectively being a referee and a player (both a cofounder of Cadiant and Mergence). We later learned that the approach of this capture was via corrupting selected Trustees on the Board, Secretariat employees, effectively making the board an enabler of this corrupt dealings.
This is when the footprints led us to National University of Lesotho (NUL) pension fund, where we uncovered the same pattern of capturing the board, where Mr Mahlatsi Monaheng, who was working with both Mr Semoli Mokhanoi via Mergence and Cadiant as the chairman of the investment committee was now used to infiltrate NUL pension fund. Recently, we reported that Central Bank of Lesotho (CBL) questioned and ordered the reversal of the appointment of Akani to administer the NUL fund.
Through hindsight, we can now see clearly that Akani, Mergence and Cadiant as South African companies are known to operate in this manner.
For example, the Chairman of Akani was recently interviewed at SA fm about Municipal Employees Pension Fund, listen to full interview here . https://iono.fm/e/1475291
It is now clear that the rule book for both Mergence and Akani is to target the vulnerable Trustes and offer financial incentives. For example, Mr Monaheng Mahlatsi recently confessed before the Public Accounts Committee (PAC) that he fabricated a case against NBC Lesotho, with the aim of awarding administration of PODCPF to Akani.
While this was ongoing, Cadiant and Mr Mahlatsi successfully managed to fraudulently appoint Akani as the administrators of NUL pension fund.
Conflicts of Interest Unveiled
Shockingly, Monaheng Mahlatsi confirmed during the PAC hearings that he, alongside Mergence’s Semoli Mokhanoi and Akani, has a close relationship, effectively acknowledging the conflict of interest in the appointment of Cadiant, Mergence, and Akani. This revelation strengthens the case against these individuals and companies, underscoring the need for further scrutiny and potential legal action.
Timeline of the Lesotho Pension Fund Scandal
2008
Old Mutual Symmetry
- Semoli Mokhanoi
- Tšepo Letsoela
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2017
Cadiant enters Lesotho and is appointed as investment consultant
- Semoli Mokhanoi, founder & shareholder of Cadiant Lesotho
- Tšepo Letsoela, Cadiant front “CEO”
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2018
- Conflict of interest emerges as Cadiant appoints Mergence as private equity manager
- Trustee, Monaheng Mahlatsi confirms he appointed Cadiant under Semoli Mokhanoi influence
- Mahlatsi funded to challenge NBC Lesotho appointment. Funding from Mergence and Akani
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2022
- Cadiant proposes using PODCPF funds to buy a stake in Mergence
- Some trustees question Semoli Mokhanoi shareholding in Cadiant and Mergence
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2023
- NUL Pension Fund appoints Akani Lesotho as administrator under Cadiant’s influence
- Monaheng Mahlatsi, NUL Pension fund PO bribed by Akani to get Akani appointed
- Cadiant evaluated tender without license from Central Bank of Lesotho
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2024
- PAC investigation confirms connections
- Monaheng Mahlatsi confirms he is in a conflicted relationship with Mergence & Akani
- Senior Central Bank of Lesotho personnel accused of corruption and negligence
- PODCPF brought under scrutiny. Mergence testimony in a closed session fingers admin and finance personnel
- Central Bank of Lesotho put on the spotlight for incompetence
A Deep Dive into the Scandal: Lesotho Tribune’s Investigative Series
In the first part of the Lesotho Tribune’s investigative series, Cadiant Lesotho was accused of engaging in corrupt practices that violated governance and ethical standards. One source remarked, “Cadiant came to Lesotho to further entrench Mr. Mokhanoi and Mergence’s interests, unfortunately at the expense of the members of this fund.”
Our sources provided compelling evidence to support the claim that Cadiant acted as both a player and a referee, advising the PODCPF on key decisions regarding investment mandates for both public and private markets. The investigation also shed light on how Mr. Mokhanoi allegedly “captured” the PODCPF with alarming ease, facilitated by Mr. Mahlatsi.
Cadiant’s Dubious Role and Connections
Cadiant Lesotho was incorporated in January 2017, six months before being awarded a three-year investment consultancy contract. Soon after, Cadiant appointed Mergence as a private equity manager—a company in which Mr. Mokhanoi held shares. This dual role raises serious concerns about the integrity of the process.
On his LinkedIn profile, Mr. Mokhanoi identifies himself as the Co-Founder of Cadiant Partners and Consultants Lesotho, a company that he described in 2018 as the first licensed investment consulting business in Lesotho. This statement, along with the share registry, confirms Mr. Mokhanoi’s dual involvement in both Cadiant and Mergence, further highlighting the deep-seated conflicts of interest.
The Investment Committee’s Ethical Dilemma
Between June and October 2022, Cadiant, representing a consortium that included Mr. Mokhanoi, presented an investment proposal to the PODCPF. The proposal, which involved purchasing a management stake in Mergence Investment Managers South Africa, was met with resistance from the PODCPF board due to the glaring conflicts of interest.
Our sources indicate that the board found it unethical to approve an investment where Mr. Mokhanoi, a shareholder in both Cadiant and Mergence, was directly involved. The board’s refusal to proceed with the proposal was a rare victory for ethical governance, though it is alleged that Mr. Mokhanoi later claimed to have sold his shares in Cadiant to push the deal through—a claim many believe to be a facade.
Expanding Influence: Cadiant’s Grip on the NUL Pension Fund
Cadiant’s undue influence extends beyond the PODCPF, spreading to other local pension funds such as the NUL Pension Fund. A member of the NUL pension fund expressed frustration with the fund’s management, highlighting the opaque process by which Cadiant Lesotho was appointed as the Employee Benefits Consultant on April 1, 2023.
Shortly after this appointment, most of the NUL Fund’s Board of Trustees was replaced with inexperienced members, while Mr. Monaheng Mahlatsi remained as the Principal Officer. By October 2023, Akani Lesotho—another company with connections to Cadiant—was appointed as the Fund Administrator, bypassing more established competitors through questionable means.
A Web of Corruption: Follow the Money
The connections between Cadiant, Mr. Mahlatsi, and Akani Lesotho are undeniable. Sources with intimate knowledge of the situation allege that Mr. Mahlatsi, along with a few other NUL trustees, was sponsored on a “due diligence” trip to Johannesburg, which was allegedly an attempt to sway the trustees’ decision in favor of Akani.
During a NUL pension fund members’ meeting in January 2024, Cadiant Lesotho’s Managing Director, Tšepo Letsoela, vigorously defended the trustees’ decision to appoint Akani as fund administrators. Public records reveal that Akani Lesotho shares the same registered address as Cadiant Lesotho and Kananelo Investments (Mr. Mokhanoi’s company), further linking these entities in a tangled web of corruption.
Conclusion: The Need for Accountability
Public records show that Akani Lesotho was only registered in April 2023, conveniently just before the administration tenders for both the SODCPF and PODCPF were due. Akani was disqualified from the SODCPF tender due to corruption allegations in South Africa, yet was still appointed at NUL, raising serious concerns about the integrity of the process.
At the center of this entire scandal is Mr. Semoli Mokhanoi and his company, Cadiant Partners. The PAC hearings and ongoing investigations have only begun to uncover the full extent of the corruption and conflicts of interest that have plagued Lesotho’s pension fund management. The need for accountability and transparency is greater than ever, and the Lesotho Tribune remains committed to shedding light on these critical issues.
What is now key is to ask the question of what now then…what now then to the PODCPF board, Secretariat, and Central Bank of Lesotho. How can malpractice of this magnitude persists for close to a decade unchecked?
