Mathatisi Sebusi
MINISTER of Finance and Development Planning, Retšelisitsoe Matlanyane, says Cabinet has approved the allocation of M500 million to settle the government’s outstanding debts to service providers.
The government owes huge amounts to service providers who have for long rendered services without getting paid.
Dr Matlanyane said this in parliament yesterday in her mid-term budget speech for the financial year 2023/2024.
She said the allocation of funds to settle outstanding debts underscored the government’s commitment to servicing its outstanding obligations.
“The clearance of government arrears is vital for financial stability, economic growth, and the overall effectiveness of government operations, while also upholding the principles of good governance and responsible fiscal management,” Dr Matlanyane said.
She, however, stated that the government will only be clearing arrears that are “properly confirmed as legitimate”.
This comes almost three weeks after the Ministry of Finance and Development Planning Principal Secretary, Nthoateng Lebona, withdrew an internal memo she had issued on October 19 suspending all payments to government service providers.
Dr Matlanyane further stated that contingency funds were being utilized to address critical government operations that fell outside ministerial budgets.
She said the Ministry of Local Government, Chieftainship, Home Affairs, and Police had received M40.1 million for the procurement of passport booklets, while the Ministry of Defence was allocated an extra M18.8 million to accommodate rising annual aircraft insurance premiums, along with an additional M2.6 million for supporting local government elections, specifically covering aircraft fuel for transportation to remote areas.
“The Ministry of Public Service, Labour, and Employment secured M8.1 million for diverse purposes, including payroll system maintenance and the implementation of the performance management system,” she said.
The Ministry of Natural Resources had received M57.7 million to assist the Lesotho Electricity Company (LEC) in settling its outstanding debt related to electricity supplies from Mozambique as well as M144 million for the refurbishment of the Muela Hydropower plant.
Dr Matlanyane said in its commitment to enhancing youth access to finance, the government had facilitated their entry into income-generating ventures through the Entrepreneurship Development Fund.
“Government has launched the national youth entrepreneurship mentorship programme, empowering young entrepreneurs with valuable business skills and knowledge, with 216 Mentees and 23 Mentors currently participating,” she said.
“Furthermore, 80 youth grants totaling M19.2 million to support climate-smart agriculture have been awarded to support wool and mohair production, livestock, and livestock products, with youths contributing M4.8 million as counterparts.”
Dr Matlanyane said the government had also increased the coverage and amount of child and disability grants to ensure that more individuals in need received the necessary assistance. As a result, the government had spent approximately M573.2 million towards that aim, she said.
“Additionally, we have embarked on the registration of old-age pension beneficiaries at all pay points throughout the country, harnessing mobile cash services and network capabilities to facilitate the implementation of digital payments.,” she said.
Dr Matlanyane said the government had also acquired and distributed sheep (1080 ewes and 108 rams) to vulnerable herders in Botha Bothe, Leribe, and Berea, to empower them economically.
She said to address poverty and hunger, the government had procured 858 metric tonnes of maize and 167 metric tonnes of beans from local producers. It had distributed them to vulnerable households thereby boosting local agricultural production.
