Mohloai Mpesi
THE 2026/27 national budget, scheduled to be presented next week, is facing resistance from the opposition, which is calling for its deferral pending investigations into government spending from the Contingency Fund.
Leader of the Opposition and Democratic Congress (DC) leader, Mathibeli Mokhothu, has urged that investigations be instituted into the utilisation of contingency funds before Parliament considers the new budget.
In November last year, it surfaced that the contingency fund stood at M955 684 354, with M528 824 258 already spent.
Mr Mokhothu’s request is contained in a letter dated 10 February 2026, addressed to Speaker of the National Assembly, Tlohang Sekhamane ahead of the Parliament’s reopening. Parliament is expected to reconvene tomorrow following the Christmas recess.
In the letter, Mr Mokhothu formally requested the Speaker to issue a directive for a special audit and a parliamentary investigation into the Contingency Fund before the House debates the 2026/27 budget.
Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane, is expected to present the budget speech on 18 February 2026.
This follows a circular savingram issued recently by the ministry’s Principal Secretary, Nthoateng Lebona, inviting senior government officials, including the Senior Private Secretary to His Majesty, the Clerks of the Senate and National Assembly, Principal Secretaries, the Registrar of the Judiciary, the Directorate on Corruption and Economic Offences Director-General and the Independent Electoral Commission Director of Elections.
“The Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane, will present the 2026–2027 Budget Speech in Parliament on 18 February 2026. You are cordially invited to attend this important event,” reads the savingram.
However, Mr Mokhothu insists that the budget estimates should be shelved until audits and investigations into the use of contingency funds are concluded.
Prime Minister Sam Matekane’s administration came under intense scrutiny in November last year after drawing more than M1 million from the Contingency Fund to finance Deputy Prime Minister Nthomeng Majara’s trip to Brazil, where she attended the 30th Conference of the Parties (COP30) to the UN Framework Convention on Climate Change, held from 10 to 21 November 2025 in Belém.
Mr Mokhothu said relevant portfolio committees should be directed to investigate the matter and submit reports to Parliament before the budget is considered.
“The Supreme Audit Institution should be directed to conduct a special audit of the use of the Contingency Fund to determine whether such expenditures meet constitutional and PFMAA requirements, as reflected in the report tabled together with the MTBR,” he said.
“The relevant Portfolio Committee(s) should also investigate the matter and submit their report to Parliament before the House considers the 2026/2027 Budget.”
He further proposed that Parliament must first fully consider and conclude the Mid-Term Budget Review (MTBR) for 2025/26 before the new budget is tabled.
“That this Honourable House gives general approval to the fiscal performance and in-year budget adjustments contained in the Mid-Term Budget Review for the year 2025/2026, moved by the Honourable Minister of Finance, be fully dealt with to finality before the Budget for the 2026/2027 financial year is tabled,” he said.
Mr Mokhothu argued that public financial practices must meet constitutional standards, adding that most contingency expenditures fail to do so.
“All public financial practices must withstand constitutional scrutiny, including the use of the Contingency Fund. My analysis of the Mid-Term Contingency Fund Report indicates that approximately 99 percent of the listed expenditures fail to meet the constitutional thresholds of unforeseeability, urgency and exceptional necessity.
“This suggests a troubling pattern of routine or foreseeable expenditure being channelled through emergency mechanisms to bypass parliamentary appropriation,” he said.
On the Supplementary Appropriation (2024/25) Bill, 2025, which was ruled out of order, Mr Mokhothu urged the Speaker to enforce corrective constitutional measures.
He said the Minister of Finance should be directed to formally report to Parliament on the utilisation of public funds withdrawn from the Consolidated Fund without lawful authority.
“The Constitution provides remedies in such circumstances, and these must now be invoked to restore legality and accountability,” he said.
Contacted for comment, Mr Sekhamane confirmed receipt of the letter and said his office had written to the Ministry of Finance and Development Planning for a response.
“Yes, I received the letter and instructed my team to write to the ministry since they are the ones who submitted the contingency requests.
“They have indicated that they are yet to respond to the issues raised by the Leader of the Opposition,” he said.
Poverty and unemployment concerns
Meanwhile, Basotho Action Party (BAP) leader, Professor Nqosa Mahao, criticised the government for failing to address rising poverty levels.
“Structurally, more and more people are getting poorer over time, and this is never adequately addressed in the budget.
“If in 2017, 49 percent of Basotho were living below the poverty line and that figure has now risen to 57 percent, it means we are failing. The biggest social problem in the country keeps growing, yet budgets continue to be passed without addressing it,” Prof Mahao said.
He also said many countries had successfully reduced poverty and questioned why Lesotho could not follow suit.
“The purpose of government is to address social problems through proper planning and budgetary allocation. In Lesotho, leaders speak in glowing terms, but when asked how these problems will be addressed, there are no answers,” he said.
He also said unemployment required urgent attention.
“We expect the minister to outline how sustainable jobs will be created. You cannot develop a country through Home Affairs alone.
“In Mohale’s Hoek, Maseru and Mafeteng alone, more than 334 000 people live in poverty. How is hunger being addressed sustainably?”
Deficit fears
Member of Parliament, Advocate Lekhetho Rakuoane, said he feared the government would increase the budget deficit.
“My suspicion is that there is no money, and that the government will try to mask this by increasing the deficit, which will burden the country.
“We will oppose reckless borrowing, especially if loans are taken to fund projects that benefit a few elites. If loans are used irresponsibly, there will be serious consequences.”
He also expressed concern over uncertain Southern African Customs Union (SACU) revenues.
Revenue outlook
Chairperson of the Portfolio Committee on the Economic Cluster, Sello Hakane, said revenue collection is expected to be lower than last year.
He attributed this partly to reciprocal tariffs imposed by the United States, which negatively affected the textile industry and investor confidence. Although the African Growth and Opportunity Act (AGOA) has since been extended for one year, the impact remains.
“Revenue collection is likely to decline because the tariffs affected factories, forced closures, and reduced tax contributions,” he said.
Mr Hakane added that retrenchments at the diamond mines had also reduced revenue.
He further noted that the termination of the Millennium Challenge Compact (MCC II) between Lesotho and the United States would have serious fiscal consequences.
“The termination means Lesotho will lose between US$400 million and US$500 million, which translates into several billion maloti. This will significantly affect the national budget,” he said.
