MCC loses over M200 million

By:Mohloai Mpesi/Mathatisi Sebusi

THE Maseru City Council (MCC) has failed to account for more than M200 million over a six-year period, a staggering financial black hole exposed this week through a series of damning audit reports tabled before parliament.

According to the Auditor General, ‘Mathabo Makenete, the Council’s financial statements for 2017 to 2022 are so riddled with inconsistencies, omissions and missing documentation that she could not express an opinion on any of them, resulting in six consecutive disclaimer opinions, a rarity of alarming proportions in public finance.

A disclaimer is the worst form of opinion any entity can obtain from a professional audit. It essentially means its accounts are so bad that they are unauditable. The entity cannot provide sufficient evidence for an auditor to form an opinion on its financial statements.

The reports, which were tabled by the Minister of Local Government, Chieftainship, Home Affairs and Police, Lebona Lephema, show a local authority whose bookkeeping and financial accountability has been in shambles for years.

Presenting her findings, Ms Makenete said she could not obtain sufficient and appropriate evidence to form an opinion.

Ms Makenete affirmed that MCC management bears the responsibility for preparing accurate financial statements, ensuring proper disclosure, assessing the council’s ability to continue as a going concern, and maintaining sound internal controls.