M884 million worth of govt assets unaccounted for – Auditor General

…as some ministries fail to record even a cent in asset registers

Moroke Sekoboto

A damning report by Auditor-General, Mathabo Makenete, has exposed widespread financial mismanagement across government ministries, with more than M884 million worth of public assets either not recorded or lacking proper documentation during the 2023/2024 financial year.

The findings are contained in the Auditor-General’s Report on the Government of Lesotho’s Consolidated Financial Statements for the year ended 31 March 2024, which was tabled before Parliament yesterday by Minister of Law and Justice, Richard Ramoeletsi, on behalf of Finance and Development Planning Minister, Dr Retšelisitsoe Matlanyane.

According to the report, several ministries and spending units failed to maintain proper Fixed Asset Registers (FAR), raising fears that government property could easily be lost, stolen, or misappropriated without detection.

Ms Makenete states that four major spending units purchased assets worth M96.03 million during the 2023/2024 financial year, but only M2.07 million worth of those assets were recorded in official registers. This left M93.95 million completely unaccounted for on paper.

“Purchased assets amounting to M96.03 million in the financial year 2023/2024, of which only M2.07 million were recorded in the asset registers,” Ms Makenete says in the report.

The affected institutions include the Ministry of Local Government, Chieftainship, Home Affairs and Police, the Ministry of Defence and National Security, the Ministry of Information, Communication, Science, Technology and Innovation, and the National Assembly.

The Ministry of Local Government, Chieftainship, Home Affairs and Police emerged as the worst offender after failing to record any of the M88.13 million worth of assets it purchased.

Similarly, the Ministry of Information, Communication, Science, Technology and Innovation failed to register assets worth M4.017 million, while the Ministry of Defence and National Security also recorded nothing despite purchasing assets valued at M577,000.

The National Assembly spent M3.306 million on assets but recorded only M2.072 million, leaving assets worth M1.234 million undocumented.

Ms Makenete warned that the omissions created fertile ground for corruption, theft and abuse of state property.

“The absence of asset registers can lead to asset loss, misappropriation, or errors in the financial statements,” she said.

She instructed Chief Accounting Officers (CAOs) to ensure all assets are recorded immediately after purchase, including details such as descriptions, locations, purchase dates and identification numbers to improve traceability and accountability.

“The Chief Accounting Officers should ensure that all asset acquisitions are promptly and accurately recorded in the fixed asset registers at the time of purchase, including proper descriptions, locations, purchase dates, and identities, to facilitate traceability from the registers to the physical assets,” Ms Makenete said.

The Auditor-General also recommended regular verification exercises comparing procurement and payment records against asset registers to identify discrepancies.

The report further reveals that the Ministry of Public Service, Labour and Employment together with the Public Service Commission failed to include purchase dates for some acquired assets, a lapse auditors say undermines government planning for maintenance, replacement and valuation of assets.

Even more alarming, six spending units reportedly failed to submit any fixed asset registers at all for audit scrutiny despite spending a combined M790.47 million on public assets.

The Ministry of Public Works and Transport accounted for the largest share of undocumented assets, with M604.97 million spent without corresponding asset registers.

The Ministry of Public Works and Transport accounts for the bulk of this vacuum, leaving M604.97 million in state property unaccounted for on paper. The Ministry of Agriculture followed with M83.28 million, and the Ministry of Education with M58.66 million in unmapped assets. Smaller funds, including the Disaster Management Authority (M363,000), also failed to present registers.”

Other affected ministries and agencies include: Ministry of Finance and Development Planning with M42,861 000, Ministry of Public Works and Transport M604,973 000, Ministry of Foreign Affairs and International Relations M322 000, Ministry of Education and Training M58,664 000 and Ministry of Agriculture, Food Security and Nutrition M83,284 000. The total amount spent is M790,467 000.

“These are spending units without fixed asset registers,” Ms Makenete states in the report.

She warns that without proper tracking systems, millions of maloti worth of taxpayer-funded assets effectively remain invisible and vulnerable to misuse.

The report paints a broader picture of weaknesses in government financial controls and accountability systems. The Auditor-General noted that delays by ministries in submitting financial reports continue to undermine the quality and reliability of government financial statements.

The report also highlighted persistent compliance problems within government financial management systems, despite ongoing reforms aimed at improving transparency and accountability.

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