A damning audit of the 2023/24 consolidated financial statements finds a M3.09 billion cash discrepancy, M96 million in unregistered assets, and an unexplained year-end movement of public funds by the Independent Electoral Commission.
Lesotho’s Auditor-General has issued an adverse opinion on the government’s Consolidated Financial Statements for the year ended 31 March 2024, citing a series of material discrepancies, unexplained fund movements, and a contested M80 million transfer by the Independent Electoral Commission that was routed through a STANLIB money market investment account without the knowledge of the Accountant-General.
The report, signed by Auditor-General Ms ‘Mathabo Gail Makenete on 28 April 2026, delivers the most damning formal audit verdict available under International Standards of Supreme Audit Institutions. An adverse opinion means the financial statements, in the auditor’s judgement, do not present fairly the government’s financial position.
In my opinion, because of the significance of the matters discussed in the Basis for Adverse Opinion paragraphs, the accompanying Consolidated Financial Statements do not present fairly the financial position of the Government as at 31st March 2024.
The most prominent finding involves the M80 million. On 28 March 2024, the IEC transferred that sum from its Standard Lesotho Bank account into a STANLIB Lesotho inflow account held with the same bank, for the stated purpose of opening a money market fund investment account. The movement was not disclosed to the Accountant-General. Because the IEC account showed a nil balance at year-end while the Consolidated Statement of Cash Receipts and Payments recorded M80 million, the Consolidated Fund was understated by that amount as at 31 March 2024.
The funds were returned to the IEC account on 2 April 2024, but by then the financial year had closed. The Auditor-General found the transfer in breach of Section 14(3) of the Public Financial Management and Accountability Act, 2011, and Treasury Regulations 31(a) and (b).
| Cash discrepancy | M3.09 billion gap between the consolidated statement (M5.91bn) and Note 15 (M2.82bn) |
| IEC / STANLIB transfer | M80 million moved to a STANLIB inflow account at year-end without Accountant-General’s knowledge; Consolidated Fund understated |
| Unsupported CBL payments | M13.1 million processed by Central Bank of Lesotho not recorded in government cashbook |
| Unregistered assets | M96.03 million in acquisitions; only M2.07 million recorded in asset registers |
| Unbudgeted spending | M315.98 million spent without a budget across three spending units |
| Unregularised advances | M404.78 million; Supplementary Appropriation Bill not approved by Parliament |
| Contingency Fund breach | M152.43 million drawn for non-urgent, non-unforeseen expenditure; breaches Section 113 of the Constitution |
| Payment arrears | M2.81 billion in obligations to suppliers, lenders, contractors not met within due dates |
| Revenue variance | M422 million gap between reported receipts (M21.83bn) and IFMIS ledger (M21.41bn) |
A M3.09 billion discrepancy in cash balances is among the other adverse findings. The Consolidated Statement of Cash Receipts and Payments reported a government cash balance of M5.91 billion, while Note 15 of the same statements showed M2.82 billion. A separate inconsistency affects reported cash movements: the statement showed a M1.31 billion increase in cash over the year, against M600 million in Note 15, leaving a further M710 million unexplained.
On public assets, four spending units purchased assets totalling M96.03 million, of which only M2.07 million were recorded in asset registers. The CFS and Ministry Financial Statements reported total receipts of M21.83 billion against an IFMIS ledger total of M21.41 billion, an unexplained variance of M422 million.
M315.98 million was spent without a budget across three spending units. M404.78 million in advances remained unregularised because the Supplementary Appropriation Bill for 2023/24 had not been approved by Parliament at the time of the report. An advance of M152.43 million was drawn from the Contingency Fund for expenditure described as neither urgent nor unforeseen, in breach of Section 113 of the Constitution.
The government also failed to meet M2.81 billion in payment obligations to individuals, suppliers, lenders and contractors within specified due dates. Treasury Bills showed an unexplained fall from M867.54 million to M747.90 million with no record of redemptions or new issues. Loan guarantee balances were reported as M54.91 million in the CFS, nil in the Public Debt Financial Statements, and M64.91 million in the Ministry of Finance statements.
The IEC is directed to comply with the PFMA Act and Treasury Regulations. The report calls on Chief Accounting Officers across all flagged spending units to implement its recommendations and strengthen internal controls.
