Matekane era spending nears M100 billion

… Parliament still in the dark over audited use

As Parliament prepares to receive the 2026/2027 national budget next week, it has already authorised approximately M96.6 billion in four consecutive financial years, without updated audited consolidated financial statements being tabled before it.

“The Honourable Minister of Finance and Development Planning, Dr Retselisitsoe Matlanyane, will present the 2026/2027 Budget Speech in Parliament on Wednesday, 18 February 2026 at 09:00am,” the Ministry’s Principal Secretary, Nthoateng Lebona, announced in a notice this week.

Prime Minister Ntsokoane Matekane assumed office in October 2022 during the 2022/2023 financial year. That year, total government spending under the Appropriation Act stood at M20,837,355,420, comprising M13.7 billion in recurrent expenditure, M6.7 billion in capital expenditure and M300 million for the Administration Account.

The first budget crafted under Matekane’s leadership was delivered in 2023 for the 2023/2024 financial year, when Parliament approved M21,795,867,793 following Dr Matlanyane’s maiden budget speech.

In 2024/2025, expenditure rose sharply to M25,783,569,329, largely driven by increased capital spending.

For the current 2025/2026 financial year, Parliament approved an even larger allocation of M28,202,758,965. Notably, the Administration Account increased from M300 million in previous years to M955,684,354.

In total, from 2022/2023 to 2025/2026, Parliament has authorised approximately M96.6 billion in public spending, of which M75.8 billion was approved under Matekane’s administration. The figures exclude any supplementary appropriations that may have been passed during the period.

However, none of these funds have been reported back to Parliament through updated audited consolidated financial statements confirming whether they were used for the purposes for which they were appropriated.

This leaves lawmakers and the public without a verified account of how the money was spent, whether projects delivered value for money, or whether irregularities occurred.

The Constitution states that it is the duty of the Auditor General “to satisfy himself that all moneys that have been appropriated by Parliament and disbursed have been applied to the purposes to which they were so appropriated and that the expenditure conforms to the authority that governs it.”

The Auditor General must also, at least once every year, audit and report on the public accounts of the government, including those of ministries, courts, constitutional commissions and Parliament.

“The Auditor-General shall submit every report made by him… to the Minister for the time being responsible for finance who shall, not later than seven days after each House of Parliament first meets after he has received the report, lay it before that House,” the Constitution further provides.

In performing these duties, the Auditor General is not subject to the direction or control of any other person or authority.

The Public Financial Management and Accountability Act of 2011 further requires that “the Minister shall present audited consolidated financial statements to Parliament within eight months of the end of the financial year to which they relate.”

Yet the latest available consolidated government financial statements remain those for the year ended 31 March 2022. The Auditor General’s report for that year was only submitted in May 2024.

There have also been accusations that the Minister of Finance has been in possession of the 2022/2023 Auditor-General’s report since May 2025 without tabling it in Parliament within the constitutionally required seven days.

International observers have flagged similar concerns. In its 2025 Article IV Consultation, the International Monetary Fund (IMF) acknowledged some progress in clearing audit backlogs but stressed that significant weaknesses remain in audit planning, commitment controls and expenditure execution.

This week, Opposition Leader Mathibeli Mokhothu wrote to National Assembly Speaker Tlohang Sekhamane raising objections to what he described as irregular mid-term budget reviews, unlawful supplementary budget practices and improper use of the Contingency Fund.

“This correspondence formally registers my objection to persistent and serious departures from constitutional and statutory requirements relating to the Mid-Term Budget Review (MTBR), Supplementary Appropriations, and the use of the Contingency Fund,” Mokhothu wrote.

“It further places Parliament and the Executive on clear notice that all fiscal processes for the 2025/2026 financial year must strictly comply with the Constitution of Lesotho, the Public Financial Management and Accountability Act (PFMAA), and established international standards of sound public financial governance,” he added.

Mokhothu argued that approximately 99 percent of the expenditures listed in the Mid-Term Contingency Fund Report fail to meet constitutional thresholds of unforeseeability, urgency and exceptional necessity.

“This suggests a troubling pattern of routine or foreseeable expenditure being channelled through emergency mechanisms in order to bypass parliamentary appropriation,” he stated.

The IMF raised a similar concern in September last year, warning that the contingency fund “should be a buffer against unanticipated shocks, rather than a channel for de facto earmarked spending, or a substitute for robust contingency planning by Ministries, Departments and Agencies.”

Staff Reporter

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