…over M50 million rent debt
‘Makananelo Manamolela
THE embattled Maseru City Council (MCC) has once again been plunged into financial turmoil, this time over a staggering M50 million rent debt.
The urban authority was on Monday locked out of its headquarters at Moonstar Complex by its landlord over failure to pay rent dating back to 2016. Council officials were denied access to the premises, disrupting operations.
However, the offices were reopened yesterday after the council pleaded for more time and committed to negotiating a payment plan. Discussions between the two parties are ongoing.
MCC Public Relations Manager, Lintle Bless, confirmed the lockout, saying employees who reported for duty early Monday morning found the premises locked, with security personnel for the landlord barring them entry.
“We were expected to begin our duties as usual on Monday morning at our headquarters, but employees who start work early found the offices locked. When we sought clarity, we were informed that it was due to the rent debt, an issue we have been discussing with the landlord,” Ms Bless said.
She explained that the debt ballooned over the years due to accumulated penalties and interest on unpaid rent dating back to around 2016.
She said the council had previously attempted to reduce costs by vacating the Moonstar premises after realising the rental charges were unsustainable.
“We vacated the premises and signed a four-year lease agreement with another landlord in an effort to curb escalating interest. However, two years later, we were instructed to return to Moonstar Complex. Upon our return, we found that a new agreement had been signed incorporating the previous rent debt and compelling us to move back.”
Ms Bless declined to disclose the terms under which the offices were reopened but confirmed that the debt remains unsettled.
She attributed the MCC’s cash flow problems to non-payment by residents, companies and organisations for municipal services.
“Those who are supposed to be paying us are not paying, which in turn affects our ability to settle our obligations. Residents and businesses must comply with the valuation roll and pay for services rendered. We have since submitted a list of debtors to the courts and are strengthening our revenue collection and internal control measures to ensure funds are properly managed,” she said.
A representative of Moonstar Complex management, who requested anonymity, confirmed the dispute but declined to comment further while negotiations continue.
“We are still in negotiations. Once a final decision has been reached, we will be able to comment,” he said.
The latest controversy comes amid a string of financial woes at the council.
Not long ago, MCC made headlines for failing to account for more than M200 million over a six-year period.
According to Auditor-General ‘Mathabo Makenete, the council’s financial statements for the 2017–2022 financial years were riddled with inconsistencies, omissions and missing documentation, leading her to issue six consecutive disclaimer opinions — the most severe form of audit opinion.
A disclaimer opinion indicates that an entity’s financial records are so inadequate that auditors are unable to form an opinion on them.
The council had gone for years without audits until Town Clerk ‘Moea Makhakhe submitted outstanding financial statements for the six-year period on 11 August 2025. This prompted Ms Makenete to commission CGT and Associates Chartered Accountants to conduct the long-overdue audits.
In a separate incident last September, the Revenue Services Lesotho (RSL) seized 17 MCC vehicles over a M67 million tax debt, comprising M13 million in Pay As You Earn (PAYE) liabilities and M54 million in penalties for failure to file and pay income tax. The vehicles were released in December after the council paid M5 million towards the PAYE debt and undertook to settle the outstanding balance.
