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- The Lesotho Communications Authority has revoked Vodacom Lesotho’s license for failing to pay a fine of more than 40 million rand.
- He accuses Vodacom of appointing an auditor who has a family connection to its president.
- Vodacom Lesotho has filed an urgent lawsuit.
- For more articles, visit www.BusinessInsider.co.za.
In a shock move, the Lesotho Communication Authority revoked Vodacom Lesotho’s license on Thursday after it failed to pay a fine of more than 40 million rand.
In a strongly worded statement in Sesotho, the LCA last week accused Vodacom Lesotho of violating government rules by appointing an audit firm associated with its president’s sister-in-law, Matjato Moteane, to audit its accounts, which, it noted. LCA, including money from the Lesotho community, which flows through Vodacom’s M-Pesa payment system.
The LCA said Vodacom showed “stubbornness” and “pride” after being confronted with this alleged violation, and accused it of attempting to hold back the nation for its control of telecommunications in Lesotho.
Fine to Vodacom R 134 million, with 70% of the fine suspended provided Vodacom complies with licensing rules in the future.
But on Thursday, the LCA revoked Vodacom Lesotho’s license when it emerged that the company was unwilling to pay the actual fine of R40.2 million.
Vodacom Lesotho says it was “shocked”, claiming it was a blatant disregard for the rule of law. The company believed it had two weeks to appeal the fine in court.
He has now filed an urgent lawsuit in Lesotho High Court against the fine and the decision to revoke his license.
“We had no choice but to seek redress in the courts because the LCA decisions that impose an excessive fine, as well as the revocation of Vodacom’s operating license, are erroneous from the point of view of law and public policy” said Vodacom Lesotho Managing Director Philip Amoateng.
“Given the hostility shown by the LCA towards Vodacom, our options are now limited to seeking redress in court to avoid further damage to our brand, reputation and the interests of stakeholders, including our customers, shareholders and employees,” he added Amoateng.
“These actions put the country’s telecommunications ecosystem at risk, including financial services platforms such as M-Pesa, and tens of thousands of jobs. Through significant investments from Vodacom Lesotho, the country has been at the forefront of new technologies and has been the first on the continent to launch 5G. “
The company assured its clients that, for the moment, “everything remains the same.”
Vodacom Lesotho was launched in 1996 and has 1.2 million customers.
Vodacom has been clashing with the LCA for some time, The Post in Lesotho reports. The main source of controversy is apparently how much the mobile phone company owed the LCA in annual installments, which are calculated as a percentage of the company’s net operating income.
According to the publication, Vodacom does not consider its income from its mobile payment platform Mpesa as part of its income for calculation purposes, while the LCA opposes this approach.
Vodacom has around 661,000 M-Pesa users in Lesotho.
Business Insider has asked Vodacom to confirm the allegations about its auditor in Lesotho, as well as the reports on rate disputes. The article will be updated with your reply, when it is received.
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