Africa-Press – Lesotho. Following the announcement by the Lesotho Communications Authority (LCA) to revoke the Vodacom Lesotho’s (VCL) licence, the latter had lodged an urgent
case wherein sought to have the former interdicted was granted the relief to stay revocation pending finalisation of the case by the High Court on October
8. Pressure on VCL intensified when the LCA made an announcement of revocation of its unified licence.
On the previous day, October 7, the LCA had issued the following statement: “notice is hereby given of the revocation of the Unified Licence of Vodacom
Lesotho (Pty) Ltd in accordance with section 47 (1)(e) of the Communications Act, 2012 read with conditions 7 ( c ) and 8 of the terms of Licence for failure to comply with the directive to pay the penalty of M40 200 000 by 7
October 2020. ” Initially, LCA had fined the telecommunications company M134 million of which 70 percent was suspended. “The respondents be and are hereby interdicted
from purporting to adjudicate any previous allegations of non-compliance by applicant with the Communications Act and/or the Codes and Regulations made
thereunder and/or the conditions of its licence/ contract conditions,” reads the court’s reprieve in favour of VCL. The applicant was VCL and the respondents
were, the Chairperson of LCA’s board, LCA and its Chief Executive Officer (CEO) first, second and third respondents respectively. Meanwhile, the court has ordered LCA to file
their submissions within 14 days. The case was before Judge Thamsanqa Nomngcongo. The LCA also accuses Vodacom for enlisting the services of the audit firm whose one of their auditors is related to the
company’s Chairperson. Through the statement released on October 8, VCL pointed out that it was “shocked” to receive notice of revocation of its Unified Licence, a move the telecommunications company said is a “flagrant
disregard of the rule of law”. In the same statement, the company’s Managing Director (MD) Philip Amoateng said, “the LCA has unfortunately violated its
prescripts and rules and our efforts to find an amicable solution has drawn a complete blank”. “These actions put at risk the country’s telecommunications ecosystem, including financial services platforms such as
M-Pesa and tens of thousands of jobs. Through significant investments by Vodacom Lesotho, the country has been at the cutting edge of new technologies
having been the first on the continent to launch 5G. “We assure citizens of Lesotho that we remain fully focused on delivering great value and superior customer experience to the
1.2 million people who have chosen us as their network provider of choice and amount of 661 000 M-Pesa users who rely on us for exclusive access to financial services. “As a responsible corporate citizen, Vodacom
Lesotho remains committed to complying with regulations and the rule of law and further contributing to the country’s economic recovery in the wake of the
global Covid-19 pandemic. Crucially, it remains business as usual for all our customers,” Vodacom Lesotho’s MD remarked. Earlier on February 16, LCA issued a statement
to the effect that VCL was slapped with a penalty of M8.2 million for alleged failure to pay the regulator’s fee by the stipulated date of July 1, 2019.
“On 15 November 2019, Lesotho Communications
Authority published a statement notifying the public of the issuance of a penalty against Vodacom Lesotho. This matter is still pending before the High
Court,” reads LCA’s statement in pertinent part. Reacting on the alleged relative of the Vodacom’s Chairperson, LCA said the following: “section 97 (2) (g) of the
Lesotho Companies Act, 2011 prohibits a company from appointing a person related to an officer (director) of a company in a position to influence financial
statements of a company as its auditor. ” “From as far back as 2015, Vodacom Lesotho directors and shareholders failed to appoint independent auditors as specified
Section 97 (2) (g) in that the external auditors is a relative of the Chairman of the Board of Vodacom Lesotho. “The explanation provided by Vodacom Lesotho
revealed a deliberate intention to undermine compliance with the laws of Lesotho. In light of the seriousness of the matter, LCA has requested Vodacom
Lesotho to provide written reasons within 90 days why its Unified Licence cannot be revoked,” the Authority argued. Speaking on Radio Lesotho last Friday, the LCA
CEO Advocate ‘Mamarame Matela said, the authority’s doors remain open for engagements with VCL adding that the company had not approached them concerning
the penalty. Advocate Matela further pointed out that unless the impasse is resolved, the company will have to close shop adding that the Authority does not wish that these developments could reach that stage.
Also, the other telecommunications company operating in the country, Econet Telecom Lesotho (ETL) has been fingered for alleged failure to meet certain obligations.
According to LCA, ETL has failed to submit the renewal application by October 11, a last year. The regulator says that telecommunications companies are expected to submit their renewal application
two years prior to expiration of the existing one. The ETL is reported to have applied for condonation which was granted on grounds that it settles the fine of M1, 5
million by December this year. LCA has further pointed out that Econet had not submitted the Audited Financial Statements by May 31, 2020 and “it is yet to
provide details of M515, 097, 845 loan”. Vodacom Lesotho has been operating in the country since 1996. It is largely owned by Vodacom Group with commanding 80
percent shareholding and the local company, Sekhametsi Consortium holds 20 percent shares. Established in 2000, LCA is an autonomous statutory body which is charged with the responsibility to regulate the communication sector.
For More News And Analysis About Lesotho Follow Africa-Press
