Staff at Queen ‘Mamohato Memorial Hospital (QMMH) say they have lost confidence in the hospital’s current management and are calling for its removal, with the Ministry of Health urged to appoint an entirely new management team.
The concerns follow revelations before the Parliament Public Accounts Committee (PAC) that the hospital’s Finance Department had redirected staff pension contributions intended for LNIG Hollard to pay hospital suppliers.
Speaking on behalf of QMMH staff, ‘Malebohang Tšolele told Newsday that the situation had further eroded employees’ confidence in both the hospital management and the administration of their pension arrangements.
Following the revelations before the PAC, she said, QMMH management invited LNIG Hollard to meet with staff.
However, Tšolele said the engagement did little to address employees’ concerns.
“As the staff, we felt like LNIG Hollard was already on the side of management and that if anything was to happen again, they would continue covering for management,” she said.
She said staff were particularly concerned about the possible loss of investment returns resulting from the delayed payment of their pension contributions.
Tšolele said QMMH staff were now in the process of finding a lawyer to assist them in exploring whether they could move their pension arrangements from LNIG Hollard to another service provider they would trust.
Dr Mojakisane Ramafikeng, also speaking on behalf of QMMH staff, corroborated Tšolele’s account, saying the discovery that pension contributions had been redirected had angered employees.
He said management subsequently called a meeting at which LNIG Hollard representatives explained the position to staff who feared that their policies might lapse.
“However, the management called a meeting where LNIG Hollard was there to explain because staff feared their policies might lapse. LNIG Hollard was there to basically let us know that, unlike policies where they are opened by an individual, organisational policies do not lapse, but the affected organisation will incur charges or penalties for not paying on time,” he said.
Ramafikeng said employees understood that LNIG Hollard could recover penalties from QMMH for late payments, but remained concerned about whether employees would be compensated for investment returns they might have lost as a result of the delayed remittance of their contributions.
“The staff will not benefit anything and it means they will forfeit their interests because their monies were not circulating in the market to make interest, and it is not clear how the staff will be compensated,” he said.
He said some employees had consequently lost trust in their employer’s ability to oversee their pension arrangements.
“As a result of all this, some of the staff felt they no longer have trust in their employer to oversee their LNIG Hollard fund so much that they want to withdraw and they will do things on their own,” Ramafikeng said.
He said one proposal was for the employer to pay employees the full amount of their contributions as part of their monthly salaries, with each employee then making payments directly to LNIG Hollard through a stop order.
“Another thing was that those who want to withdraw should be allowed and those who want to should also be allowed,” he said.
Pension law
Section 29 of the Lesotho Pension Act, 2019 (Act No. 4 of 2019), which regulates pension schemes and funds in Lesotho, provides that a contribution payable in respect of a member of an occupational or umbrella pension fund must be paid to the fund by or on behalf of the member within seven days after the expiry of the period for which the contribution is due.
The Act further provides that the board must, no later than the first business day following the day on which the fund receives a contribution, ensure that all money received by the fund is invested in accordance with the fund’s investment policy.
It also provides that an employer who fails to remit contributions to an occupational or umbrella pension fund within seven days of the expiry of the period for which they were due is liable to pay interest on the contributions at a rate determined by the regulator in the regulations, as well as an administrative penalty of M10,000 for each day the remittance remains outstanding.
The Act further provides that the regulator, the Central Bank of Lesotho, may make regulations determining whether, and to what extent, an intermediary licensed under the Act may receive and remit contributions to an occupational or umbrella pension fund.
LNIG Hollard responds
LNIG Hollard Head of Brand and Marketing Liepollo Tsekoa said the engagement with QMMH employees formed part of the insurer’s annual member communication and engagement programme relating to employee benefits provided to hospital employees under LNIG Hollard’s administration.
She said benefit statements are prepared and made available to fund members as part of the process, followed by member engagement sessions intended to explain the benefits reflected in the statements, refresh members on their insured risk benefits and provide an opportunity for questions and clarification.
Tsekoa said the hospital management invited LNIG Hollard to conduct the engagement as part of the usual annual member engagement programme, taking into account its operational schedule and staff availability.
“The primary purpose of the visit was to engage directly with Members, explain their Employee Benefits and provide an opportunity for members to obtain clarification on matters relating to their insurance cover and benefits,” she said.
According to Tsekoa, the main concerns raised by employees included confirmation that their insurance cover remained active, delays in issuing benefit statements, non-payment of premiums by the employer and individual queries concerning information reflected on members’ benefit statements.
She said LNIG Hollard confirmed that the insured benefits remained active and informed members that the issuance of benefit statements had been delayed.
“Management confirmed to the employees that indeed they were behind on some premiums,” she said.
Tsekoa said individual queries, including matters concerning personal information on member statements, were addressed through established channels, including referrals through the hospital’s Human Resources office where member records required updating.
She added that LNIG Hollard conducted one-on-one member engagements on 28–29 July and 4–5 August 2026, allowing employees to raise specific concerns about their individual benefits and statements.
“LNIG Hollard addressed the questions and concerns that were directed to it during the engagements,” she said.
She said general questions regarding the status of insured benefits and benefit statements were addressed during group sessions, while individual queries were either referred through established HR channels or handled during the subsequent one-on-one engagements.
Tsekoa stressed that, for insured group risk benefits administered by LNIG Hollard, cover remains active.
“Accordingly, there has been no interruption to the insured benefits as a result of the matters raised during the member engagement,” she said.
She, however, distinguished the insured group risk benefits from the retirement fund.
“The position regarding the Retirement Fund is separate from the insured Group Risk Benefits. Where Retirement Contributions are delayed, this may have implications for the timing of the investment of those contributions and, consequently, the investment returns that may accrue to members,” she said.
She added that members’ benefits remained subject to the applicable policy and fund rules, terms and conditions.
Regarding employees’ calls for a change of service provider, Tsekoa said LNIG Hollard had not received a formal request from QMMH, as the policyholder, to terminate or transfer the existing insurance arrangement.
“Any decision to change an insurance service provider would be a matter for the relevant Policyholder and Fund stakeholders and would need to follow the applicable Contractual, Governance and Regulatory requirements,” she said.
She said any change would also need to take into account continuity of cover, the terms and conditions of an alternative arrangement, eligibility requirements, applicable exclusions or waiting periods, the treatment of existing claims and the effective date of the transition.
“It would therefore be important that any proposed change is properly assessed and communicated to affected Members before implementation, to ensure that Members understand any implications for their existing benefits and protection,” Tsekoa said.
She said LNIG Hollard remained committed to servicing the existing arrangement and engaging with relevant stakeholders to address members’ questions and ensure continuity of service and benefits.
Summary
- “As a result of all this, some of the staff felt they no longer have trust in their employer to oversee their LNIG Hollard fund so much that they want to withdraw and they will do things on their own,” Ramafikeng said.
- 4 of 2019), which regulates pension schemes and funds in Lesotho, provides that a contribution payable in respect of a member of an occupational or umbrella pension fund must be paid to the fund by or on behalf of the member within seven days after the expiry of the period for which the contribution is due.
- The Act further provides that the board must, no later than the first business day following the day on which the fund receives a contribution, ensure that all money received by the fund is invested in accordance with the fund’s investment policy.
Ntsoaki Motaung is an award-winning health journalist from Lesotho, specializing in community health stories with a focus on sexual and reproductive health and rights, as well as HIV. She has contributed to platforms like “Be in the KNOW,” highlighting issues such as the exclusion of people with disabilities from HIV prevention efforts in Lesotho.
In addition to her journalism, Ntsoaki serves as the Country Coordinator for the Regional Media Action Plan Support Network (REMAPSEN). She is also a 2023 CPHIA Journalism Fellow.
