Maseru, Lesotho – The Auditor General of Lesotho Paul Letlela has released damning reports revealing severe mismanagement and financial irregularities in two major public projects: the construction of the Royal Palace and the operations of the Lesotho Electricity Company (LEC).
Royal Palace: 15 Years of Delays and Skyrocketing Costs
The construction of Lesotho’s Royal Palace, initially slated for completion in three years, has now dragged on for 15 years with no end in sight. The Auditor General’s report highlights “significant mismanagement” and a “lack of adherence to construction regulations,” with contractors and consultants receiving massive payment increases far beyond original agreements.
Key findings include:
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PL Architects received a 70% increase from the original contract amount.
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MGA Design Lab (MDL) was paid 36% more than initially agreed.
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Leola Costs, the quantity surveyor, saw a staggering 2,994% increase in fees.
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LSP Construction, the main contractor, was granted a 225% hike in payments.
The report also criticized consultants for using South African financial guidelines, which are far more expensive and create legal complications. This means any contractual disputes would have to be settled in South African courts, leaving the Lesotho government at a disadvantage.
LEC Faces Scrutiny Over Financial Irregularities
Meanwhile, the Lesotho Electricity Company (LEC) is under fire after the Auditor General issued a disclaimer, declaring its financial statements non-compliant with reporting standards. The report found that LEC’s 2023 financial statements, including cash flow and equity records, were improperly prepared.
In a controversial move, LEC’s board filed an urgent court application to block the Public Accounts Committee (PAC) from questioning its members. The PAC, responsible for overseeing public funds, has vowed to challenge the application, calling it a “dangerous precedent” for accountability.
“When public institutions resort to judicial intervention to avoid scrutiny, it undermines transparency,” the PAC stated, pledging to oppose the court bid while complying with legal procedures.
Public Outrage Over Corruption and Unemployment
The revelations have sparked widespread anger on social media, with citizens condemning rampant corruption amid rising electricity costs and youth unemployment. Online petitions are circulating, demanding that Prime Minister Sam Matekane intervene and order LEC to withdraw its court case.
As the controversy deepens, Basotho are calling for urgent reforms to ensure public funds are used responsibly. The PAC is expected to proceed with its investigation next week, setting the stage for a legal and political showdown over accountability in Lesotho’s governance.
