Billy Ntaote
Trade and Industry Minister Joshua Setipa on Wednesday suspended the Lesotho National Development Corporation (LNDC) Board of Directors with immediate effect.
According to a letter addressed to Board Chairman Majakathata Mokoena Thakhisi, who is also Trade and Industry Principal Secretary (PS), the suspension is to allow the restructuring of government’s trade and investment showcase.
Mr Setipa’s letter is copied to the Board Secretary, LNDC Chief Executive Officer (CEO) and the Board’s eight members namely Dr Liengoane Lefosa (Bureau of Statistics Director-General), Dr Lefulesele Lebesa (Ministry of Agriculture and Food Security), Mampho Tjabane (entrepreneur), Lebakeng Mohau Tigeli (entrepreneur), Makhetha Thaele (entrepreneur), Lehlohonolo Chefa (Consumer Protection Association), M Ntema (status not given on LNDC website) and S Ramafikeng (position also not indicated on the site).
The Board was appointed in July last year for a three-year term.
Mr Setipa’s letter dated 4 May 2016 and titled ‘Suspension of the Board’, reads: “The LNDC has been mandated to, amongst others, promote and facilitate the development of industry in order to raise income and create employment.
“The Board’s mandate is to oversee the LNDC and ensure that it fulfils its said mandate. To this end, on a number of occasions, I have requested that the LNDC and the Board be restructured to enable it to refocus and concentrate on its core mandate.
“With the support of the Private Sector Competitiveness and Economic Diversification Project of the World Bank, the LNDC and the Board will be restructured. To enable this process, I have found it necessary to suspend the operation of the Board effective immediately in order to protect the integrity of the Board. Kindly note that the suspension is an interim measure and should not be interpreted as the dissolution of the Board.
“In the meantime, you are instructed to submit directly to me, a report from each of the subcommittee chairs on their subcommittee operations since the re-constitution of the Board. This report must be submitted not later than close of business on Monday 16th May 2016. I hope you will appreciate the exercise of restructuring is long overdue and deserves urgent attention.”
Mr Majakathata Mokoena yesterday confirmed receiving Mr Setipa’s letter but said he could not comment on it until he has consulted with the Board.
However, the PS raised concern that the letter had been leaked to the media.
“It’s really a shock that such a letter has been leaked. It’s such a huge shock that government information, confidential information, can be that easily accessible. It’s really astonishing. I cannot comment on the nitty gritty of the letter without consultations with the Board,” said Mr Majakathata Mokoena.
Mr Setipa also expressed surprise that the letter had been leaked to the media. But the minister denied allegations that he had suspended the Board after a fallout over terminal benefits he is demanding from the corporation.
Mr Setipa joined the LNDC as CEO on 10 January 2012 and left the organisation “by mutual consent” on 30 April 2014. He had been suspended by the Board on 11 December 2013 pending an investigation into his management of the parastatal.
After leaving the corporation, Mr Setipa maintained a low profile until he was unveiled Maseru Central Constituency candidate for the Lesotho Congress for Democracy (LCD) in the 28 February 2015 snap elections. The constituency was won by Lesego Makgothi of the All Basotho Convention, but Mr Setipa was thrown a political lifeline when he was nominated to the Senate, paving the way for his appointment to cabinet in March last year.
Meanwhile, in October last year, Mr Setipa, through his lawyer, Advocate Letuka Molati, asked for a review of the separation agreement he had signed with the LNDC.
The letter was written to the LNDC Board chairperson, ‘Mapulumo Mosisili, who was the Ministry of Trade and Industry PS at the time.
Part of the letter reads: “In May 2014, client was forced to sign a separation agreement with the LNDC which terminated his contract as the Chief Executive Officer of the Corporation following his suspension from office in December 2013.
“The separation agreement offered my client a package equivalent to one year salary plus benefits.
“This was despite the fact that at separation, client’s five-year contract was in its second year.
“The decision to suspend client and subsequently dismiss him was taken without any charges or disciplinary process being undertaken.
“It is also important for us to highlight a number of developments that occurred at the corporation prior to my client’s suspension and subsequent dismissal.
“It is our contention that this decision was politically motivated and not related to his discharge of his mandate as the corporation’s Chief Executive.”
“In 2012, immediately after joining the corporation, the then Minister for Trade and Industry, Cooperatives and Marketing initiated a forensic audit on the affairs of the corporation.
“At the conclusion of that process, a number of key personnel of the corporation were found guilty of serious misconduct, including fraud, and subsequently dismissed by client in line with the corporation’s policy.
“To client’s surprise, a few days later, he was suspended and the dismissed members of staff of the LNDC were reinstated without any appeal process being undertaken and this, in our view, was a clear demonstration of the LNDC Board’s lack of objectivity in its conduct.”
However, Mr Setipa yesterday said there was no link between Wednesday’s suspension of the Board and his demands from the LNDC.
He said: “Only four people received the letter, and definitely one of them decided to leak it to the media.
“However, the letter is self-explanatory as it is about a long overdue restructuring process.”
On the alleged fallout with the Board over his exit package from the LNDC, Mr Setipa said: “My terminal benefits issue is a matter between me and the Government. It is clear that as Trade and Industry Minister, I cannot sue an agency under my Ministry.
“So I went to the Board following its appointment and informed it about my issues with the LNDC. I also informed them that they cannot handle the matter and as such, it has been referred to the Prime Minister and government to deal with it.”
The minister added he would be addressing the LNDC restructuring and other issues regarding the ministry at a press conference this week.