Post Office Savings Bank
The Project Management Committee (PMC) continued to pave way for the establishment of the Lesotho Post Bank even though the activity was sluggish resulting from certain structural impediments. The PMC carried out the following activities during 2003:

a) Site Visit of Pilot Sites:
The PMC visited ten Post Offices with the objective of establishing whether they comply with the security guidelines as prescribed by the Central bank of Lesotho (CBL). The Post Offices which were visited are the following: Pitseng, Maputsoe, Mokhotlong, Mapholaneng, Thaba-Tseka, Sehong-hong, Machache, Semonkong, Quthing and Mount Moorosi.

b) Refurbishment of Pilot Post Offices
The site visits were followed by a preparation of a comprehensive report which was submitted by the Director of Lesotho Postal Services. The report was to serve as a basis for enabling the Director to make a plan for the refurbishment of the Post Offices which have been selected to participate in the pilot phase.

c) Registration as Public Company
The cabinet granted approval that the Post Office be registered as a public company. The shares were allocated to the shareholders in the following proportions: Minister of communications 700 shares, Minister of Finance 50 shares, Attorney General 50 shares, Principal Secretary Communications 50 shares, Principal Secretary Finance 50 shares, Director Lesotho Postal Services 50 shares and Legal Officer 50 shares. The shares allocated to the Government was with the understanding that after the project has taken off, the Government would relinquish the 60 per cent of the shares and remain with 40 per cent.

d) Service Contract
The service contract between the Lesotho Post Bank and the Lesotho Postal Services was drafted and finalised in November, 2003.

e) Business Plan
The PMC drew an abridged business plan for the pilot phase for onward submission to the Cabinet. The business plan was approved by the Cabinet in November, 2003. Following the approval of the business plan the Ministry of Communications was given a go-ahead to apply for a banking license.

f) Staff Recruitment
The PMC drew the terms of reference and job descriptions for senior management of the Lesotho Post Bank in preparation for recruitment during the following year.