The government of Lesotho has announced that going forward the Lesotho Communications Authority (LCA) will vet executive leadership positions at telecommunications companies.

According to the directive, any appointment to the board of directors or other management function at Econet Telecom Lesotho and Vodacom must be submitted to the LCA for review and approval.

In an official statement via the LCA, the government said the action was aimed at ensuring the integrity of companies, as well as good governance.

An excerpt from the statement reads: “The LCA has decided to monitor appointments within telecom companies in order to guarantee good governance that ensures their financial stability, sources of income for the State and employment for part of the population.”

The LCA explained that operators can no longer single-handedly appoint executive positions (including directors, CEOs, Deputy CEOs, CTOs, CFOs and heads of units), without the approval of the regulator.

LCA CEO Mamarame Matela also announced that employees who are already in executive positions within the telcos must submit a request for approval to remain in their positions.

“This application for approval will include, among other things, a complete Curriculum Vitae indicating the qualifications and relevant experience in their current functions, proof of registration with professional bodies, an aptitude assessment form,” said Matela.

However critics have voiced concern over the directive and warned that in addition to stifling independence of the companies, the government has yet to publish official guidelines.

There is speculation that the directive stems from the ongoing legal battle between the LCA and mobile operator Vodacom.

Early October 2020, the LCA reportedly revoked Vodacom’s unified license, citing alleged transgressions - notably the operator’s refusal to pay a penalty of R40.2 million by 7 October 2020. The regulator said its decision to revoke the Unified Licence of Vodacom Lesotho was in accordance with section 47 of the Communications Act.

However, the operator quickly approached the High Court of Lesotho and requested the decision be reviewed and set aside.

Vodacom Lesotho has since issued a statement confirming it will review the latest directive by government, seek further clarification and officially comment once guidelines for the directive have been implemented.