Lesotho Times
Local NewsNews

Govt fails to pay service providers

…as they go eights months without pay

Mohloai Mpesi

MANY service providers contracted under the Ministry of Health’s Maintenance Project Implementation Unit (MHPIU) have decried prolonged non-payment by government, saying the delays are crippling their businesses and putting patients’ lives at risk.

Service providers across several categories—including emergency transport, security, catering, laundry and cleaning, maintenance, and mortuary services—told the Lesotho Times that they have gone for up to eight months without payment. They say the situation has pushed many companies to the brink of collapse.

The financial strain has had direct consequences for healthcare delivery, particularly emergency transport services, where lack of funds has reportedly led to avoidable deaths. Providers say they are forced to borrow money to fuel ambulances and pay staff before responding to emergencies.

Uncertainty remains over when the outstanding payments will be settled. A letter dated 4 December 2025 from MHPIU Project Manager, Sello Sefali, offered an apology but no clear timeline.

“Please note that there has been an unexpected delay in the release of funds to HMPIU to furnish all outstanding contractors’ payments to date,” the letter reads.

“We would like to extend our heartfelt apologies for the inconvenience this delay has caused to your company. You are kindly requested to bear with us while we arrange to make payments as soon as funding is received.”

An emergency transport service provider, who spoke on condition of anonymity for fear of reprisal, said the delays have severely disrupted both the business and family life.

“We have not been given any convincing response. They always say there is no money. This is my seventh month without payment,” the provider said.

“My children have not gone to school. I have not paid my drivers since last year, and their children are also out of school.”

The provider said the lack of funds has exposed patients to serious risks, recounting incidents where critical delays proved fatal.

“One woman almost gave birth in the ambulance. Another patient died while waiting for a doctor who had gone for lunch.

“If I had not stopped at the garage to fill fuel, we could have arrived before the doctor left. The patient died sitting in a wheelchair.”

The provider said every referral now requires borrowing money.

“We are sinking into debt. We cannot fuel, service or maintain vehicles, nor pay drivers. We are unable to perform to the required standards.”

Another service provider said some companies have gone eight months without payment, while others are owed six months.

“Some contracts started in May last year and have about five months unpaid, while others have six. Those who started in March were last paid in June or July, and that was the end,” the source said.

The providers said they have sought intervention from the Office of the Prime Minister but received no concrete answers.

“We are about 61 companies. We even went to State House, but meeting the Prime Minister is difficult. There is no clear date for payment. Letters only say the Ministry of Health is discussing the issue with the Ministry of Finance and that Cabinet is yet to sit. Eight months later, we are still waiting.”

A cleaning services provider said banks are now threatening to repossess property used as collateral for business loans.

“I was last paid in August, and that payment covered previous months. We cannot pay workers. Banks want to take our property. Vehicles are broken down, families are struggling, and the business is collapsing.”

Responding to the concerns, Mr Sefali said the delays stemmed from challenges during the project’s transition from the Ministry of Finance and Development Planning to the Ministry of Health, where its budget was significantly reduced.

“The project was initially allocated M250 million under Finance, but this was cut to M114 million under Health, while the scope increased from 172 to 209,” Mr Sefali said.

He disputed claims of eight months’ arrears, saying contractors were paid up to July last year.

“Those owed are owed from August to January, which is six months,” he said, adding that full-time contractors are paid monthly.

“When we transitioned, we already had signed contracts based on the original budget. We were instructed to continue operating while the issue was being addressed, and that has led to the current situation.”

Mr Sefali said efforts are underway to resolve the matter.

“Many initiatives have been made, including one last week where it was agreed that payments will be made.

“We are ready to pay as soon as funds are released. We sincerely apologise for the delay, especially as these service providers have continued working. This challenge has affected all of us.”

 

Related posts

Gvt to lower taxes, retirement age to boost youth employment

Lesotho Times

What happened to media freedom?

Lesotho Times

Lightning strikes players

Lesotho Times