(MENAFN- The Post) MASERU -THE Lesotho Communications Authority (LCA)''s decision to slap Vodacom Lesotho with a M134 million fine appears to have the Cabinet''s blessings.
Documents seen by thepost this week indicate that the LCA boss, ''Mamarame Matela, had briefed the Cabinet about Vodacom''s alleged violations.
The document shows that Communications Minister Thesele ''Maseribane also supports the punitive action against the company.
On September 8 Matela presented a report on the LCA''s status and operations at an informal Cabinet meeting at Manthabiseng Convention Centre.
In the report Matela talked about the internal LCA issues, including disciplinary action against some senior officials.
She also mentioned the investigation against the former chief executive and the previous directors over alleged fraud and abuse of office.
She then zeroed in on Vodacom, mentioning how the company failed to comply with the directive to appoint an independent external auditor.
The language in that report appears strikingly similar to what she has now said in the letter to Vodacom.
She told the cabinet that Vodacom refused to amend the categories of the trial balance so that it can identify which portion of the net operating income is for Mpesa, its mobile money platform.
Matela said Vodacom insisted that the template was imposed by the parent company and ''would not be amended to meet local regulatory requirements''.
''Vodacom was unable to account for funds disbursed for the schools connect project to the tune of M900 000 but later admitted the failure, reimbursed the Universal Service Fund, undertook to connect 100 schools and paid a penalty of M250 000,'' the report said.
Following the report ''Maseribane wrote to Matela on September 9, announcing the Cabinet''s decision.
In the letter ''Maseribane tells Matela that Cabinet had decided that the LCA ''must ensure that good governance principles are adhered to at all times''.
The statement doesn''t specifically mention Vodacom but it seems to have been informed by the LCA''s concerns about the company''s government issues, particularly the conflict of interest relating to the board chairman and the eternal auditor.
''The Authority must continue to strengthen compliance monitoring effects to secure compliance by all categories of licencees in the telecommunications, broadcasting and postal sectors,'' ''Maseribane said.
He also said the Cabinet had instructed the LCA to ''strengthen accountability by adopting and implementing clear verification processes for profiling, construction and completion of network infrastructure expansion projects'' funded by the government and the Universal Service Fund.
That too is not specific to Vodacom but it is plausible to say it''s based on the allegations LCA had made about the company regarding the connection of schools.
The LCA''s report to the Cabinet and ''Maseribane''s letter came as the authority was finalising its decision against Vodacom.
Matela thus appears to have tacitly nudged the Cabinet to endorse her decision.
Having confirmed the LCA''s mandate, the Cabinet might find it difficult to change that position if it comes under pressure to influence the authority to reverse the penalty against Vodacom.
Staff Reporter
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