…as its property faces auction over M7 million tax debt
Mathatisi Sebusi
THE Lesotho National Development Corporation (LNDC) is locked in talks with the Revenue Services Lesotho (RSL) over a tax debt of about M7 million owed by Loti Brick Pty Ltd, with a Magistrate Court order authorising the auction of the company’s property to settle the debt.
The property earmarked for auction is Loti Brick’s immovable asset (plot) at Mankoaneng Ha Teko in Mazenod, Maseru.
RSL had dragged the brick manufacturing company to court, accusing it of failing to pay M7,401,813.08 in outstanding taxes. The sum comprises unpaid Corporate Income Tax, Fringe Benefit Tax and Pay As You Earn (PAYE).
LNDC Chief Executive Officer, Advocate Molise Ramaili, told the Lesotho Times that negotiations with RSL were ongoing.
“Please note that we are currently in talks with RSL on this matter and at this stage, I am not able to give you the true status of the matter. Please allow us some time to finalise things and we will give comprehensive feedback,” Adv Ramaili said.
A warrant of execution issued by the Maseru Magistrates’ Court ordered that the outstanding amount continues to attract an additional tax of 22 percent per annum from the date it fell due until settlement.
The court further instructed the Sheriff to auction Loti Brick’s property to ensure that the debt is paid in full.
The ruling authorised the Sheriff to: “Attach, remove and take into custody or possession the immovable property of Loti Brick and realise the same by public auction in the sum of M7,401,813.08, together with your costs of this execution, and pay Revenue Services Lesotho the sum of M7,401,813.08, and return to this court what you have done by virtue hereof.”
The court, however, provided that if the debt was settled in full within an hour of the Sheriff’s entry, Loti Brick would not be liable for additional execution costs.
“This execution may be paid before sale, subject to the payment of the Sheriff’s fees and charges of execution, which may be required to be taxed. The only immovable property upon which this warrant may be executed is situated at Mankoaneng Ha Teko, Mazenod, Maseru, known as plot No. 12314-350, as shown on plan No. 12314 held by the Chief Surveyor and held under lease No. 12314-350.”
Established in 1978, Loti Brick is controlled by the LNDC with its operations involving the manufacturing, sales, and distribution of clay brick products.
Loti Brick announced a temporary closure in September last year, citing financial difficulties that had crippled its operations for years. The company has since remained closed.
The Public Accounts Committee (PAC) had in November last year opposed the move to sell the state-owned company to Minister of Local Government, Chieftainship, Home Affairs and Police, Lebona Lephema’s company, Lephema Executive Transport.
Meanwhile, trade unions have raised concerns over the fate of workers who were laid off in June last year.
United Textiles Employees Union (UNITE) President, Malebohang Thai, said affected workers had been promised either absorption by a new buyer or payment of half of their severance packages.
“Workers have been laid off since June last year. They were promised half of their severance pay and informed that the company would be sold to a buyer who would absorb them. We have approached the government about this matter, but to date, nothing has been done to address the non-payment of workers. We were at some point told that government does not have money to pay the workers,” Ms Thai said.
