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Road Fund dialogue highlights importance of budget performance

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Seabata Mahao

The Chief Executive Officer of the Road Fund, ‘Matšepang Sekhokoane, has urged road infrastructure agencies to assess their budget performance for the 2024/25 financial year.

Speaking at a recent stakeholder engagement meeting organised by the Fund, Sekhokoane revealed the budget allocations for the agencies; M300 million to the Roads Directorate, M80 million to Maseru City Council (MCC), M33 million to the Local Government Department, and M8 million to the Road Safety Department.

The Roads Directorate is tasked with maintaining national roads, MCC focuses on Maseru’s urban roads, local authorities handle council roads, and the Road Safety Department educates the public on road safety.

While she did not dwell much on the matter, Sekhokoane raised a pertinent point of budget under-performance by the agencies as reflected in the 2022/23 financial year.

According to the Road Fund’s 2022/23 annual report, only 33 percent of the total allocated funds were utilised by the agencies. Of the M217,395,375 allocated, just M72,605,971 had been spent by the end of the fiscal year.

“Two of the three implementing agencies did not undertake new projects, despite receiving funding according to their yearly implementation plan,” the report stated.

Sekhokoane also emphasised the need for improved financial performance and urged Basotho to pay their spot fines, which contribute to road maintenance.

She noted that payments can now be made through mobile services like Mpesa and Ecocash, making it easier for people to comply.

The Road Fund generates its revenue from several sources: toll gate fees collected by the Lesotho Revenue Service, the Road Maintenance Levy from oil companies, and fees from the Department of Traffic and Transport for license renewals, vehicle registrations, and fitness checks by traffic police.

Looking ahead, Sekhokoane mentioned that the Road Fund has already drafted its budget for the next fiscal year.

“Once the financial year ends in March, we will assess our collections and allocate funds based on the needs of each stakeholder. While we don’t directly maintain roads, we fund their construction and upkeep,” she explained.

During the same dialogue, acting Town Clerk Qoboko Makhakhe highlighted the challenges posed by Maseru’s growing population, particularly traffic congestion within the city.

The Roads Directorate’s Director of Road Network Planning, Khasapane Kikine, added that their strategic plan would conclude at the end of this financial year.

“We have identified unclear business processes as a significant barrier to progress, and we’re working to streamline them moving forward,” Kikine noted.

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