…vows to protect her from Matlanyane’s “unlawful” interference
Mathatisi Sebusi/Mohloai Mpesi
PARLIAMENT has pledged to protect the embattled Revenue Services Lesotho (RSL) Commissioner General, ‘Mathabo Mokoko, from “unlawful interference” by Minister of Finance and Development Planning, Retšelisitsoe Matlanyane.
This after Advocate Mokoko told the Parliamentary Economic Cluster this week that Dr Matlanyane was meddling with RSL operations by issuing directives which are “not only inappropriate but outright unlawful”.
While appearing before the Committee to brief it on improvements in tax collection, Adv Mokoko said meddling by the Minister was stifling the tax authority’s independence.
Her interference includes demands for confidential taxpayer information and unlawful instructions to issue tax clearances to delinquent companies owing millions to the taxman, she said.
“There are serious challenges at RSL caused directly by the Minister’s interference, which prevent us from delivering our mandate effectively,” Adv Mokoko told the Committee.
“If I can be given the space, I will unpack all these issues before this committee, because they go to the heart of RSL’s ability to function lawfully.”
Chair of Chairs, Mokhothu Makhanyane, assured her that Parliament would stand by her.
“RSL must be protected from political influence. It is unfortunate that we have only been hearing one side of the story — from the Minister — who has been reporting issues about RSL to Parliament, while there is clearly more to be heard,” Mr Makhalanyane said.
The Committee promised to summon both Adv Mokoko and Dr Matlanyane to another sitting where the allegations would be examined in detail.
On the same day, the Lesotho Times saw a leaked communication from Adv Mokoko’s legal representatives, Mei & Mei Attorneys, addressed to both the RSL Board and to Dr Matlanyane, accusing the finance minister of issuing a “litany of unprecedented and unlawful instructions”.
The 9 September letter to the Board cites repeated instances where Dr Matlanyane allegedly demanded confidential taxpayer information, which is explicitly prohibited under current tax laws.
“Our instructions are that our client made repeated requests to the Board in the past for intervention, insisting that appropriate governance processes and protocols be followed by the Honourable Minister when dealing with the Commissioner General and Revenue Services Lesotho.”
The previous day, on 8 September, the law firm had written directly to Dr Matlanyane cataloguing specific instances of interference.
“The Minister has instructed the Commissioner General to issue tax clearances to delinquent taxpayers — those who have failed to comply, despite reasonable efforts by RSL to enforce compliance; to disclose the amounts and dates on which such taxpayers submitted refund applications, along with anticipated payment dates; and to consider the mining sector debt-to-equity ratio at 8:1, when the law clearly dictates a 3:1 ratio.
“The Minister instructed the Commissioner General to find a ‘solution’ for mining companies by ensuring that they operate at 8:1 debt-to-equity ratio because they are allegedly facing challenging financial times.
“This instruction is clearly unlawful inasmuch as the issue of debt-to-equity ratio is governed by legislation, and the only solution the Minister can provide is to amend such legislation, not to give an instruction that violates existing laws.”
Adv Mokoko, according to her legal team, had pushed back during meetings with the Minister.
“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. She indicated that she was prepared to provide the Minister with information on the number of pending applications for refund and the reasons why they have not been paid — such as verification before processing and/or a taxpayer owing taxes — and to provide sectoral breakdowns, without disclosing the full particulars of individual taxpayers.”
The lawyers also drew attention to the secrecy provisions of the VAT Act entailed in section 76(1) which reads: “A person appointed under or employed in the carrying out of this Act, shall preserve secrecy with regard to all information or documents which may come to his or her knowledge in an official capacity, and shall not communicate such information to any other person except in the performance of his or her duties under this Act or by order of a competent court”.
They warned that if Adv Mokoko complied with such demands, she risked criminal liability.
“The Commissioner General and the RSL reasonably fear that if they disclose the required information to the Minister, the net effect would be to violate the secrecy provisions of the VAT Act. They also reasonably fear that granting tax clearance certificates to delinquent taxpayers would encourage tax delinquency, compromise the efficiency of RSL, and erode its credibility with serious repercussions for the economy and financial functioning of the State.”
The lawyers went further, rebuking the manner in which some of the demands were made.
“We wish to record that the issuing of informal and casual instructions 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.
“We therefore urge the Minister to cease interfering in the operations of RSL by issuing unlawful instructions which render the workplace intolerable. We have been instructed to demand, as we hereby do, that you withdraw the unlawful instructions and that, in accordance with applicable protocols, you issue written instructions.”
Contacted for comment, Dr Matlanyane, who is currently in the United States as part of a delegation sent for tariff negotiations, said she could not immediately respond.
“I am in meetings out of the country. I’ll not be able to respond now. However, I will call a press briefing once I am back in Maseru,” Dr Matlanyane said.
