The Board of Directors of the Revenue Services Lesotho (RSL) has acknowledged awareness of the deepening conflict between Finance Minister Dr Retšelisitsoe Matlanyane and Commissioner-General ‘Mathabo Mokoko, but has refused to be drawn into public comment.
At the centre of the standoff are allegations that the Minister has been issuing instructions that the Commissioner-General said are unlawful, compromising the independence of the tax authority and exposing its leadership to possible criminal liability.
Approached for comment, RSL’s Board Chairperson Advocate Lindiwe Sephomolo KC confirmed knowledge of the matter but said the board was “seized” with it and would therefore not comment further at this stage.
The board’s silence has fuelled growing concern that the crisis could paralyse the tax authority at a time when Lesotho’s economy is under pressure.
Efforts to obtain a response from Parliament’s Economic and Development Cluster Committee, which oversees the RSL, also proved unsuccessful. Committee chairperson Sello Hakane could not be reached by phone and had not responded to messages by the time of going to print.
In a letter of demand dated September 8, Mokoko, through her lawyers Mei & Mei Attorneys Inc., accused Matlanyane of issuing “persistent unlawful instructions” that violate the secrecy and operational independence of the tax authority.
The letter, also copied to the RSL board chair on September 9, describes what Mokoko calls “intolerable” working conditions created by the Minister’s conduct. Among the alleged instructions are demands for confidential taxpayer information, manipulation of tax clearance systems, and enforcement of unlawful debt-to-equity ratios for mining firms.
The most serious allegations involve pressure to reveal names of taxpayers who applied for refunds, instructions to issue tax clearance certificates to delinquent taxpayers, demands for details of refund amounts and timelines for individual taxpayers, attempts to enforce an 8:1 debt-to-equity ratio for mining companies despite the law prescribing a 3:1 limit, and requirements for proofs of payment for taxpayers awaiting refunds.
“The Commissioner-General as duty bound explained to the Minister that to disclose such information would violate the provisions of the governing legislation particularly the VAT Act in this context,” the lawyers wrote.
Mokoko maintains that these demands contravene multiple laws, including the Value Added Tax Act, the Income Tax Act, and the Lesotho Revenue Authority Act. Section 76 of the VAT Act obliges RSL employees to preserve taxpayer secrecy, with breaches punishable under section 68.
Despite repeated warnings from Mokoko, the Minister is alleged to have continued pressing for sensitive information, sometimes through WhatsApp messages and other informal channels.
This, Mokoko argues, undermines the credibility of the RSL’s automated tax clearance system, which was designed to eliminate favoritism and political manipulation.
“The instructions of the Minister are therefore unlawful in so far as she has sought to be provided with a report naming individual taxpayers whose refunds are still being processed and that the Commissioner General should issue tax clearances to delinquent taxpayers,” the letter states.
The grievances document warns that compliance with the Minister’s instructions would have devastating consequences.
“The RSL as an institution fears that it will lose credibility and the trust of the Basotho with serious repercussions for the economy and the financial functioning of the State,” it reads.
The letter also warns that issuing tax clearances to non-compliant taxpayers could encourage further delinquency, ultimately crippling the efficiency and effectiveness of the tax system.
Mokoko and her legal team argue that proper communication should be routed through the board of directors, which in turn should liaise with the Commissioner-General. By bypassing these protocols, they say, the Minister has not only undermined governance procedures but also created a hostile working environment.
The lawyers’ letter formally demands Matlanyane to cease issuing unlawful instructions and instead restrict her directives to written communication via the board. It further cautions that if the interference continues, the RSL may seek legal remedies, including interdicts against the Minister.
“In the premises, we have been instructed to demand, as we hereby do, that you withdraw the unlawful instructions and that in accordance with the applicable protocols you issue written instructions,” the lawyers write.
They continued: “The issuing of informal and casual instruction through platforms such as WhatsApp runs contrary to established State protocols and procedures in dealing with confidential and sensitive correspondence particularly at such high-powered level.”
While warning of legal action, the letter also leaves the door open for dialogue. “However, we believe that the parties have an obligation in the national interest to resolve their differences and act in the best interests of the country particularly in these trying economic climate posed by the factors beyond the Kingdom of Lesotho (sic),” it says.
Contacted for comment, Matlanyane confirmed she was outside the country but promised to hold a press briefing on her return.
Her side of the story remains unknown, but the allegations have already sparked intense debate about political interference in state institutions, particularly the tax authority, which plays a central role in the nation’s economic stability.
The standoff comes at a time when Lesotho is battling fiscal pressures, high unemployment, and an urgent need to improve revenue collection. Any weakening of the RSL’s credibility could compromise the country’s ability to meet its revenue targets and maintain confidence with international partners such as the IMF and World Bank.
Observers warn that prolonged conflict between the Minister and the Commissioner-General could also unsettle staff morale at RSL, disrupt tax administration, and scare away investors already worried about governance and stability in the country.
Summary
- At the centre of the standoff are allegations that the Minister has been issuing instructions that the Commissioner-General said are unlawful, compromising the independence of the tax authority and exposing its leadership to possible criminal liability.
- “The instructions of the Minister are therefore unlawful in so far as she has sought to be provided with a report naming individual taxpayers whose refunds are still being processed and that the Commissioner General should issue tax clearances to delinquent taxpayers,” the letter states.
- “The RSL as an institution fears that it will lose credibility and the trust of the Basotho with serious repercussions for the economy and the financial functioning of the State,” it reads.
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.
