THE newly appointed governor of the Central Bank of Lesotho (CBL), Dr Maluke Letete should develop wisdom in handling politicians and ensuring that there is no interference in carrying out the bank’s mandate, says legendary chartered accountant and analyst, Sam Mphaka.

He said Dr Letete would encounter many challenges along the way – including favoritism, nepotism, inefficiency, interference - from the powers that be.

“There’s no question he will encounter problems doing his job,” Mr Mphaka told Maseru Metro in an interview.

He said one of the major challenges facing parastatals was the politicisation of the work environment.

 “As a result, many state-owned entities are characterised by bureaucracy,” he said. “The CBL is no exception to such impediments and lack political will.”

He warned the new governor to remain vigilant when working with politicians, adding he should ensure that they did not interfere with the bank’s monetary policy mandate.

Following the departure of former governor, Dr Retšelisitsoe Matlanyane whose tenure ended in January, Dr Letete was appointed as the new head of the bank with effect from June 1.

The newly appointed deputy governor, Lehlomela Mohapi acted in this position after Dr Matlanyane left office.  

Mr Mphaka further advised Dr Letete to grow a thick skin, warning him to always make the right choices and persuade government to offload the CBL by establishing relevant specialised regulatory bodies in the financial market.

“This will facilitate prompt response to the emerging market opportunities in the financial sector,” he said. “Otherwise, it will perpetuate the current business stalemate and retardation of the financial industry.”

Mr Mphaka said another notable challenge Dr Letete would face was the workload the CBL was having with various responsibilities, which had gradually increased.