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LCA cancels VCL license

VCL Managing Director Philip Amoateng

Oct. 9, 2020 2 min read

2 min read

THE Lesotho Communications Authority (LCA) has revoked Vodacom Lesotho (VCL)’s unified license after the communications giant failed to pay penalty of M40 200 000 which constitutes 30 per cent of the M134 000 000 fine imposed by the authority.

LCA is an independent regulatory agency established to regulate telecommunications, broadcasting and postal sectors.
Earlier, LCA had accused VCL of failing to appoint an independent auditor to do it accounts from 2015 until 2019 and not showing any remorse for it.

The authority further accused VCL of failing to provide adequate mitigation factors and supporting evidence for the 23 000 jobs promised.
For its part, VCL pledged in a statement of October 7 signed by the Managing Director Philip Amoateng that its M-PESA customers’ funds are safe.

Mr Amoateng said the heavy fine imposed on VCL will not affect any transactions and savings on M-PESA service as the mobile money provider is a financial service regulated by the Central Bank of Lesotho (CBL).

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He said the CBL has not raised any concerns regarding the safety and security of the M-PESA service.
He, therefore, encouraged the customers to continue using all their M-PESA services like before.

He strongly refuted allegations that customers monies saved in M-PESA accounts will be used to pay the fine that has been imposed on the company, adding that M-PESA funds are secured in a separate trust account that is regulated by the CBL.

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