PODCPF clears the air amidst negative image

MOSA MAOENG

MASERU – Amidst growing concerns and the negative publicity surrounding the Public Officers’ Defined Contribution Pension Fund (PODCPF), Principal Officer ’Mamotlohi Mochebelele stepped up to clarify key issues and strengthen stakeholder relations during a one-day media engagement session held last Friday.

The session, designed to improve the dissemination of information about the fund, highlighted the crucial role of the media in bridging the gap between the fund and its members. Mochebelele said the media plays a vital role as a stakeholder in communicating accurate and transparent information to the public and the fund’s members.

“The media is a key partner in ensuring that our members and the general public are well-informed about the operations and performance of the fund. “Through this engagement, we aim to foster a deeper understanding and build trust with our stakeholders,” she said as she opened the event. During her presentation, Mochebelele explained the distinct structures of two funds managed under the PODCPF.

She clarified that the Public Officers’ Defined Contribution Pension Fund, which is widely known, currently manages assets worth approximately M12 billion and serves about 36,000 members.  In contrast, the Specified Offices Defined Contribution Pension Fund, which caters to high-level public officials such as principal secretaries and ministers, manages assets totalling around M300 million and covers about 1,600 members.

Mochebelele also elaborated on the governance structure of the funds, noting that the Board of Trustees, appointed as per Section 6 of the PODCPF Act, oversees the fund’s operations. The board comprises representatives from both the active members of the fund and pensioners.

The Government of Lesotho, through the Ministry of Finance and the Ministry of Public Service, acts as both the financial and policy sponsors of the fund, respectively. Mochebelele did not shy away from the challenges facing the PODCPF, particularly the negative media coverage and allegations surrounding the fund’s management.

In a candid discussion, she emphasised the fund’s unwavering commitment to transparency and accountability. “We are fully aware of the serious allegations made against the Fund, the Board of Trustees, employees of the Secretariat, and some of our service providers. These allegations have resulted in the fund being involved in several legal proceedings, some of which are still ongoing,” she acknowledged.

While she refrained from commenting on specific cases, citing legal restrictions, Mochebelele gave assurance that the fund is co-operating fully with the inquiry initiated by the Public Accounts Committee (PAC). She said preserving the integrity of ongoing investigations is a priority and the fund would not issue public statements until the legal processes are concluded.

Mochebelele acknowledged that the negative publicity has caused concern among the fund’s members. However, she reassured them that their retirement savings remain secure, with the fund monitoring and managing assets meticulously. “Rest assured that your savings are in good hands and are regularly monitored by the Board of Trustees. The matters that have caused concern are being dealt with at the highest level, and we remain committed to ensuring that your retirement benefits are safeguarded,” she said. Mochebelele also outlined the fund’s strategic objectives for the five-year period beginning in April 2022. The strategy focuses on improving financial sustainability, enhancing governance, streamlining benefit administration, and intensifying stakeholder engagement.

These efforts, she explained, are key to ensuring the long-term success and stability of the fund. MISA Lesotho National Director, Lekhetho Ntsukunyane, echoed Mochebelele’s sentiments, emphasising the importance of such media engagement sessions. He noted that the media plays a pivotal role in informing, educating, and even entertaining the public therefore these sessions help bridge the knowledge gap on critical issues such as pension fund management.

“It is essential for the media to be informed so that we can, in turn, inform the public accurately. Sessions like these help us understand complex issues like pension management, and that understanding benefits the wider community,” Ntsukunyane said. He added that the media itself can benefit from learning about managing its finances through better understanding of pension systems.

The Public Officers’ Defined Contribution Pension Fund, established under the PODCPF Act of 2008, is committed to providing retirement benefits to permanent and pensionable public officers.