Prime Minister Ntsokoane Matekane has put the Minister of Public Works and Transport, Matjato Moteane, under intense pressure to complete the long-delayed Royal Palace project – or face dismissal.
Newsday has learnt that the PM has made it clear that the project’s completion is non-negotiable and has warned Moteane that his job is on the line if the palace remains unfinished.
“The Prime Minister wants this project completed and Their Majesties to move in,” Moteane said in an exclusive interview this week. “He’s made it clear that failure is not an option.”
The completion of the long-stalled palace, which began in 2008 and was originally meant to be ready for His Majesty King Letsie III’s 50th birthday in 2013, forms part of Moteane’s performance contract. More than a decade later, the site remains a costly monument to government inefficiency, a half-finished structure marred by mismanagement, cost overruns, and neglect.
According to the Auditor-General’s report, the project has consumed over M350 million so far, with overruns of more than M74 million and shocking overpayments of up to 3,000 percent on some contracts.
The report revealed that Palace Architects (Pty) Ltd, Makeka Design Lab, Lethola Cost Associates, Aurecon, Dyelec, and LSP Construction (Pty) Ltd were among contractors that benefitted from inflated payments.
Lethola Cost Associates’ contract skyrocketed from M826,160 to M25.5 million, a 3,000 percent increase. Aurecon’s contract rose from M1.4 million to M13.9 million, an 840 percent increase.
LSP Construction’s original M136 million contract ballooned to M354 million, a 120 percent increase.
The audit also exposed widespread construction defects, including damaged timber floors, cracked tiles, broken glass panes, leaking drainpipes, and peeling paint. Out of 107 construction items inspected, 56 percent failed to meet design standards.
Auditor-General ‘Mathabo Makenete warned that the main building requires structural integrity tests before it can be safely occupied.
Minister Moteane admitted the current state of the project is “embarrassing and shameful.”
“My job is to make sure the Royal Palace is completed,” he said. “The Cabinet has instructed me to do that. I feel pain, as a professional and as a politician. Service delivery has been appalling. We were playing games with the project. Things went bad from day one.”
He added that if the project fails to move forward within the next 15 months, he risks losing his job.
“I am waiting for the Procurement Authority’s response,” he said. “If it were up to me, I would start tomorrow.”
Moteane blamed years of poor management, weak oversight, and political interference for the project’s collapse. “Towards the end, the project became a gold mine for somebody. Costs have run amok,” he said.
The Minister confirmed that he has written to contractors flagged by the Auditor-General to demand repayment of overpaid funds, but they have refused to comply. He said the matter has been reported to the Attorney-General for legal action.
However, Moteane has yet to take disciplinary action against ministry officials implicated in the audit report for mismanagement and procurement failures. Asked when he would act, he could not provide a timeline.
“They started a project they did not know how to run, or did not care to,” he said. “It became a free-for-all.”
In August, the government introduced the Public Procurement Regulations, 2025, under the Public Procurement Act, 2023, aimed at tightening accountability, improving transparency, and curbing the kind of abuse that plagued the Royal Palace project.
The new rules empower the Central Tender Board to handle all high-value contracts and require committees to avoid conflicts of interest and keep detailed procurement records. The regulations also introduce sanctions and blacklisting for suppliers or officials involved in corruption.
Moteane has previously faced calls for his dismissal from the Public Accounts Committee (PAC) over procurement irregularities at Moshoeshoe I International Airport.
Last week, during a Cabinet retreat in Mohale’s Hoek, ministers were reminded by the Prime Minister to deliver on their outstanding commitments.
Kay
Matekane turns up heat on Moteane over Royal Palace
Thoboloko Ntšonyane
Prime Minister Ntsokoane Matekane has put the Minister of Public Works and Transport, Matjato Moteane, under intense pressure to complete the long-delayed Royal Palace project – or face dismissal.
Newsday has learnt that the PM has made it clear that the project’s completion is non-negotiable and has warned Moteane that his job is on the line if the palace remains unfinished.
“The Prime Minister wants this project completed and Their Majesties to move in,” Moteane said in an exclusive interview this week. “He’s made it clear that failure is not an option.”
The completion of the long-stalled palace, which began in 2008 and was originally meant to be ready for His Majesty King Letsie III’s 50th birthday in 2013, forms part of Moteane’s performance contract. More than a decade later, the site remains a costly monument to government inefficiency, a half-finished structure marred by mismanagement, cost overruns, and neglect.
According to the Auditor-General’s report, the project has consumed over M350 million so far, with overruns of more than M74 million and shocking overpayments of up to 3,000 percent on some contracts.
The report revealed that Palace Architects (Pty) Ltd, Makeka Design Lab, Lethola Cost Associates, Aurecon, Dyelec, and LSP Construction (Pty) Ltd were among contractors that benefitted from inflated payments.
Lethola Cost Associates’ contract skyrocketed from M826,160 to M25.5 million, a 3,000 percent increase. Aurecon’s contract rose from M1.4 million to M13.9 million, an 840 percent increase.
LSP Construction’s original M136 million contract ballooned to M354 million, a 120 percent increase.
The audit also exposed widespread construction defects, including damaged timber floors, cracked tiles, broken glass panes, leaking drainpipes, and peeling paint. Out of 107 construction items inspected, 56 percent failed to meet design standards.
Auditor-General ‘Mathabo Makenete warned that the main building requires structural integrity tests before it can be safely occupied.
Minister Moteane admitted the current state of the project is “embarrassing and shameful.”
“My job is to make sure the Royal Palace is completed,” he said. “The Cabinet has instructed me to do that. I feel pain, as a professional and as a politician. Service delivery has been appalling. We were playing games with the project. Things went bad from day one.”
He added that if the project fails to move forward within the next 15 months, he risks losing his job.
“I am waiting for the Procurement Authority’s response,” he said. “If it were up to me, I would start tomorrow.”
Moteane blamed years of poor management, weak oversight, and political interference for the project’s collapse. “Towards the end, the project became a gold mine for somebody. Costs have run amok,” he said.
The Minister confirmed that he has written to contractors flagged by the Auditor-General to demand repayment of overpaid funds, but they have refused to comply. He said the matter has been reported to the Attorney-General for legal action.
However, Moteane has yet to take disciplinary action against ministry officials implicated in the audit report for mismanagement and procurement failures. Asked when he would act, he could not provide a timeline.
“They started a project they did not know how to run, or did not care to,” he said. “It became a free-for-all.”
In August, the government introduced the Public Procurement Regulations, 2025, under the Public Procurement Act, 2023, aimed at tightening accountability, improving transparency, and curbing the kind of abuse that plagued the Royal Palace project.
The new rules empower the Central Tender Board to handle all high-value contracts and require committees to avoid conflicts of interest and keep detailed procurement records. The regulations also introduce sanctions and blacklisting for suppliers or officials involved in corruption.
Moteane has previously faced calls for his dismissal from the Public Accounts Committee (PAC) over procurement irregularities at Moshoeshoe I International Airport.
Last week, during a Cabinet retreat in Mohale’s Hoek, ministers were reminded by the Prime Minister to deliver on their outstanding commitments.
Summary
- Newsday has learnt that the PM has made it clear that the project’s completion is non-negotiable and has warned Moteane that his job is on the line if the palace remains unfinished.
- According to the Auditor-General’s report, the project has consumed over M350 million so far, with overruns of more than M74 million and shocking overpayments of up to 3,000 percent on some contracts.
- In August, the government introduced the Public Procurement Regulations, 2025, under the Public Procurement Act, 2023, aimed at tightening accountability, improving transparency, and curbing the kind of abuse that plagued the Royal Palace project.
Thoboloko Ntšonyane is a dedicated journalist who has contributed to various publications. He focuses on parliament, climate change, human rights, sexual and reproductive health rights (SRHR), health, business and court reports. His work inspires change, triggers dialogue and also promote transparency in a society.
