Maseru — On Friday 31 October 2025, the Revenue Services Lesotho (RSL) reportedly entered the premises of the Maseru City Council (MCC) at Maseru West and removed yellow-plant equipment valued at over M20 million, according to multiple independent sources. The move followed a tax-collection process initiated by RSL against MCC for outstanding liabilities.
RSL’s spokesperson, Thabang Loko, declined comment, stating: “We are obligated by law not to discuss taxpayers’ affairs, therefore RSL will not comment on this.” MCC likewise did not issue a statement in response.
A Broader Enforcement Drive
This incident sits within a broader pattern of aggressive enforcement by RSL this year. Two recent high-profile cases illustrate the trend:
• The Lesotho Housing and Land Development Corporation (LHLDC), a state-owned enterprise, is subject to a court order obtained by RSL for unpaid taxes amounting to M35,722,995.38. The order authorises seizure of movable and if necessary immovable assets located in central Maseru.
• The Loti Brick (Pty) Ltd company also faces a tax liability in the region of M7.4 millionfollowing a court order for attachment of its property.
Together, these show that RSL is willing to enforce tax claims not only against private firms but also public entities and parastatals.
What the MCC Seizure Means
The removal of over M20 million in plant equipment from MCC raises several urgent questions:
• What is the exact amount of MCC’s outstanding tax liability, and what period does it cover?
• What process did RSL follow: Was there a demand notice, a court order, a period for negotiation or settlement?
• How will MCC maintain its operations and service delivery if key capital equipment has been removed?
• Does this signal that even local government entities can expect direct asset attachment if they fall behind on tax obligations?
Implications for Surrounding Institutions
For local authorities and state-owned enterprises, the message is clear: RSL appears to be ramping up enforcement. Entities that may have considered themselves insulated from tax action may need to reassess. The fact that LHLDC and Loti Brick are now subject to formal attachment orders suggests that the net is widening.
From a governance perspective, these actions underscore the importance of regular compliance with tax obligations and the risks of delays or defaults. Local government bodies in particular should review their internal controls, debt management practices, and engage proactively with RSL if they anticipate difficulty meeting obligations.
Next Steps
We will monitor the situation for:
• A formal response from MCC about its tax position and the nature of the seized equipment;
• Confirmation from RSL regarding the legal basis for the seizure (e.g., whether a court judgment or warrant of execution was in place);
• Any follow-up actions by MCC—such as appeal, repayment plan, or public disclosure of the liability;
• Whether other local authorities or municipalities face similar enforcement by RSL in the near-term.
For now, the story highlights that in Lesotho’s tax regime enforcement is no longer something that happens quietly in the background, it is visible, significant, and potentially disruptive for even publicly-owned or municipal organisations.
