MASERU— Public Officers’ Defined Contribution Pension Fund (PODCPF) chairperson, who is also Principal Secretary at the ministry of Finance and Development Planning, Nthoateng Lebona faced harsh criticism in Parliament on Monday for failing to submit her personal tax clearance certificate, which has stalled operations at the PODCPF.
The Public Accounts Committee (PAC) uncovered that this lapse has hindered the Central Bank of Lesotho (CBL) from completing its assessment of the Pension Fund’s board fit and proper assessment.
This isn’t the first time Lebona has come under scrutiny in connection with her role at the PODCPF. In previous articles, Lesotho Tribune reported on allegations that Lebona does not possess the fit and proper clearance from the Central Bank of Lesotho, a necessary certification for those in such a key fiduciary role. Without this certification, the integrity of the Pension Fund’s leadership has been called into question.
PAC’s Displeasure
The PAC, unimpressed with the revelation, questioned why Lebona had not submitted the tax clearance like her fellow board members. The committee has now resolved to summon both Finance Minister Dr. Retselisitsoe Matlanyane and Central Bank Governor Dr. Maluke Letete to explain this anomaly. Dr. Matlanyane, prior to her appointment as Finance Minister, served as Central Bank Governor for 10 years.
PAC chairperson, ’Machabana Lemphane-Letsie, reminded the meeting that the Central Bank’s deadline for submitting the necessary documents had lapsed in September. She grilled Lebona, asking: “Do you think you are fit to chair meetings and make decisions yet you have not given the regulator your tax clearance certificate?”
She further questioned the legality of decisions made by the current board, suggesting that these decisions might be challenged in court due to the lack of proper oversight by the regulator. “Are you aware that the Pension Fund will lose court cases on decisions made by the current board? What can you say about all the decisions you have made as the board? Are they lawful?”
Lebona’s Response
Visibly irritated, Lebona responded that such legal questions should be addressed by an expert, stating, “Our lawyer can respond to that.” She acknowledged that the Central Bank had requested her tax clearance to finalize the assessment of the board but grew visibly agitated when further pressed. “It is true I am expected to submit everything, it’s just that the situation has pushed me,” she said, declining to elaborate on what “the situation” entailed.
Lebona’s frustration boiled over as she deflected blame, suggesting that the issue should be addressed by the Central Bank itself. “The queries should be addressed by the regulator and not me,” she added.
PAC’s Reactions
Several members of the PAC were unimpressed with Lebona’s response. Montoeli Masoetsa, a PAC member from the All Basotho Convention (ABC), accused Lebona of derailing the board’s assessment process on purpose. “You did it purposely,” Masoetsa charged, adding that Lebona seemed to think she outranked the Central Bank due to her position as Principal Secretary of the Finance Ministry.
“The fund has lost credibility due to being chaired by someone who is negligent,” Masoetsa added, citing that several important decisions have been made under Lebona’s leadership without proper regulatory clearance.
Mamello Phooko, from the Lesotho Congress for Democracy (LCD), echoed these sentiments, criticizing Lebona’s refusal to submit the required documents as deliberate. “Even when you look at her, she looks unshakable, like someone who has not made any mistakes,” Phooko remarked, mocking the fact that the Principal Secretary of Finance could not obtain her own tax clearance.
“You are the chief accounting officer but you are unable to get a tax clearance,” Phooko continued, in a scathing assessment of Lebona’s handling of her responsibilities.
Concerns Over Leadership
The leader of the Basotho National Party (BNP), Machesetsa Mofomobe, likened the situation to someone driving without a license. “Even though one may know how to drive, it is still a crime to drive without a license,” Mofomobe said. “The fact that this board has been making decisions without a fit and proper assessment should be declared a crime.”
Corporate Secretary of the Pension Fund, Sempe Moshoeshoe, confirmed that he had submitted all necessary documents to the Central Bank, except for Lebona’s tax clearance. “Its absence renders my submission useless,” Moshoeshoe stated.
He further added that the other trustees had submitted their papers and were simply awaiting confirmation from the Central Bank on whether they are deemed fit and proper to serve on the board.
In previous reports, Lesotho Tribune highlighted the critical role the Central Bank’s fit and proper assessment plays in determining the competency of board members like Lebona. Without this clearance, questions have been raised about the legality of the board’s decisions. The ongoing controversy has fueled concerns over leadership at the Pension Fund, particularly as the Fund manages the savings of thousands of public servants.
Lebona’s failure to meet the basic regulatory requirements, coupled with the ongoing legal questions surrounding her leadership, casts a shadow over the future of the Pension Fund and its ability to make sound, lawful decisions.
