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Mystery shrouds LTDC CEO’s appointment

Business

… Second place wins first place after baffling board decision

Staff Reporter

On this day, a year past – November 15, 2023 – the Lesotho Tourism Development Corporation (LTDC) heralded, with apparent optimism, the appointment of Molupe Pheko as its Chief Executive Officer, following what was billed as a successful recruitment process.

“Following a successful recruitment process and appointment of Mr Molupe Pheko as LTDC CEO, by the LTDC Board of Directors, we welcome him, and wish him well in this paramount undertaking,” LTDC announced with seeming confidence in the new leadership.

One year on, however, Newsday has unearthed startling revelations that cast a shadow over the board’s decision.

Despite Pheko’s designation as the organisation’s head, sources privy to the process disclosed that he had been ranked second by the recruitment agency responsible for selecting the new CEO.

Yet, the board bypassed the candidate who had scored highest, Sehlabaka Ramafikeng, a seasoned contender who had already served in the role on an interim basis.

Insiders have intimated to Newsday that Pheko’s appointment was not without its own share of trepidation. One of his referees had allegedly raised reservations about his preparedness for the demanding role of CEO, a sentiment that apparently did not deter the board in its ultimate selection.

However, ‘Mamolemo Maleke, the board’s secretary, refuted these claims with unwavering conviction, asserting to Newsday yesterday that the appointment process itself extended beyond the board’s remit.

“Someone had already approached the Directorate on Corruption and Economic Offences (DCEO) even before the process had concluded, alleging irregularities,” Maleke stated.

According to her, the DCEO initiated an investigation, scrutinising the process, and subsequently found no fault, thereby granting the board clearance to proceed.

Maleke further emphasised that reports suggesting Ramafikeng had been ranked first, with Pheko second, were categorically unfounded.

“That is utterly false,” she declared. “I can assure you, with my head held high, that such rankings are incorrect. It is equally untrue that any referee questioned Mr. Pheko’s readiness for the CEO position. I personally reviewed the final report from the recruitment consultancy, and there was no such assertion.”

Maleke’s testimonial stands in stark contrast to that of Moshe Mosaase, the former Principal Secretary (PS) of the Ministry of Tourism, who presided over the LTDC board when the recruitment process commenced.

Mosaase confirmed to Newsday: “Mr. Sehlabaka Ramafikeng was indeed ranked first, with Mr. Pheko coming in second.” He added that he could not recall the names of the third candidate, though he noted that the individual currently serves as the acting CEO of the Basotho Enterprise Development Corporation (BEDCO).

Mosaase further elaborated that he was a member of the Human Resource and Operations sub-committee – responsible for overseeing the recruitment – though he was not its chair.

He clarified that by the time the board reached its final decision and appointed Pheko, he had already been reassigned to another ministry and was no longer board chair.

Explaining the process, he noted that nine candidates met the qualifications based on their CVs, with the sub-committee originally aiming to shortlist five for interviews. However, since two candidates were tied at fifth place, a total of six were interviewed.

“This demonstrates the transparency of the process,” he remarked. “Out of the six candidates, three were eliminated, and the remaining three progressed to the psychometric assessment, after which the consultancy’s final ranking placed Mr. Ramafikeng at the top.”

Mosaase emphasised that while the consultancy’s recommendation carried weight, it was advisory rather than prescriptive. “The sub-committee considered the consultancy’s professional advice before referring the matter to the full board for a conclusive decision. By that point, I was no longer part of the process,” he said.

Although he acknowledged his absence from the board when the final decision was made, he knew the rationale behind selecting Pheko over Ramafikeng.

“The board was looking for a fresh perspective, a leader unencumbered by previous associations with LTDC. Someone who could inject new ideas,” he explained, adding: “Had I been responsible for the ultimate choice, I would likely have selected Mr. Pheko myself.”

Newsday had reached out to Mosaase with inquiries, seeking clarity on his relationship with Pheko and whether they shared any personal connections, such as school ties, which might have influenced the appointment decision.

Other questions Newsday posed to Mosaase delved deeper into the selection process for Pheko’s appointment.

The inquiries included:

  • Can you walk us through the appointment process for Mr. Pheko? Specifically, who was involved in the decision-making, and what criteria were prioritised?
  • We understand that Mr. Pheko was allegedly ranked third and did not perform well in both oral and psychometric tests. What were the specific reasons for selecting him over candidates who reportedly scored higher?
  • It has also been alleged that one of Mr. Pheko’s referees expressed doubts about his readiness for the CEO role. Were you aware of this feedback? If so, how was it factored into the final decision?
  • Given these concerns, can you assure the public that the appointment process was transparent and free from favouritism?
  • How do you respond to concerns of possible nepotism?

In response, Mosaase dismissed these allegations as unfounded. Addressing questions about his personal connection to Pheko, he acknowledged: “Yes, we both attended Lesotho High School. Lesotho is a small country, and it is natural for us to know each other. However, I did not influence the decision to appoint Mr. Pheko.”

Consultant Limpho Nchepe-Motanyane remained guarded in her interview with Newsday yesterday, citing a non-disclosure agreement she had signed with her client, LTDC. She emphasised that the consultancy only provides recommendations, which are not binding on the client.

“We compiled a report with recommendations and submitted it to the client. What they choose to do with it is entirely their decision,” she explained.

Newsday wants to access this report. As a publicly funded institution, LTDC’s CEO appointment should be open to public scrutiny in the interest of transparency. Also, Lesotho, as a democratic kingdom, should uphold these principles in all its state institutions.

If the LTDC board had valid reasons for departing from the consultancy’s recommendation, those reasons have not been disclosed.

Transparency demands that public institutions justify decisions when they deviate from established selection processes, especially when it appears that a more qualified candidate was overlooked.

Nchepe-Motanyane added, “What I can assure you is that Mr. Mosaase and our consultancy were not involved in the final decision. We, too, only learned of the client’s chosen appointee through the media, like everyone else.”

Mosaase redirected Newsday to Pokello Mahlomola, the current Principal Secretary (PS) and chairperson of the LTDC board.

However, Newsday found that Mahlomola only assumed the role on April 1, 2024, well after Pheko’s appointment. Attempts to reach Mahlomola for comment were unsuccessful, as he was not available by phone.

Once reached, Newsday plans to formally request a copy of the report.

Sources privy to LTDC’s inner workings, meanwhile, anonymously decried Pheko’s performance in his initial year, characterising his leadership as a conspicuous dereliction of governance.

Portrayed as narcissistic and hypersensitive, these insiders claimed Pheko sowed internal discord. Efforts to obtain his comment also proved unavailing, as his phone went unanswered yesterday.

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