LCA sets the record straight on Vodacom saga

LCA sets the record straight on Vodacom saga

Ezekiel Morake

The Lesotho Communications Authority (LCA), a communications regulatory body has come out guns blazing setting the record straight against Vodacom Lesotho penalty saga.

The spokesman of LCA Ts’iu Ts’iu said his institution was aware of the media reports relating to Vodacom strained relationship with LCA. He said LCA issued a penalty of M8.2 million against Vodacom Lesotho for failure to pay regulatory fees as they fell due and payable on or by 1 July 2019.

“The Lesotho Communications Authority (Licensing Classification and fees) Rules 2018 prescribe on clear terms that the authority shall impose penalties for non-payment of regulatory fees and prescribes how these penalties shall be imposed. On 15 November 2019, LCA published a statement notifying the public of the issuance of a penalty against Vodacom Lesotho. The matter is still pending before the High court,” said Ts’iu.

He said LCA had paid M900 000.00 for the provision of internet to 30 high schools in 2015/16 and 60 high schools in 2017/18 and also 60 more in 2018/19 but some schools complained that there was no internet at their schools. Therefore , LCA required a detailed report on what happened but Vodacom failed to provide a complete and accurate performance report.

“The License conditions of mobile network operators require them to issue timely and accurate billing to its customers. Vodacom Lesotho failed to provide correct, complete and accurate bills on time. Despite several requests to provide complete and accurate information regarding the provision of internet to schools, Vodacom Lesotho has still failed to do so. The matter is still pending before LCA,” he said.

He further said that the license conditions of Vodacom Lesotho required them to submit annual financial statements accompanied by certification issued by independent auditors. Ts’iu added that 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 transactions or financial statements of a company as its auditors.

“From as far back 2015, Vodacom Lesotho directors and shareholders failed to appoint independent auditors as specified in section 97(2)(g) in that the external auditor 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 the light of the seriousness of the matter, LCA has requested Vodacom Lesotho to provide written reasons within 90 days why its unified license cannot be revoked,” said Ts’iu in a statement.

He said that LCA was still waiting for submissions from Vodacom. Ts’iu revealed that Vodacom has also failed on its regulations concerning the Summa Campaign and the matter was still pending before LCA.

However, Chairman of Vodacom Board Matjato Moteane denied that his company was wrong in interview with a South African website. He said LCA was threatening to revoke the Vodacom license and also wanted 8 million in penalties of which they are fighting against in the courts of law. Moteane said her sister’s audit company was hired legally to conduct audits.

Vodacom has the biggest customer base in Lesotho and if the license was to be revoked many people would have to move to another controversial communications company Econet.