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February 23, 2024
Business

SECTION 2 RAISES CONCERNS OVER LEC PROPOSED TARIFF ADJUSTMENT  

Maseru, Feb. 05 — In a recent development, Section 2, the Advocates for the Supremacy of the Constitution, has expressed deep reservations regarding a tariff proposal put forth by the Lesotho Electricity Company (LEC) for the fiscal year 2024/2025.

Mr. Tjatjapa Sekabi, Secretary General of Section 2, voiced concerns during an interview, highlighting that LEC’s proposal to increase tariffs utilizes audited financial statements for the period ending March 31, 2022. 

Mr. Sekabi emphasized that such outdated financial data fails to accurately represent the current financial standing of the company, questioning the validity of the proposed tariff adjustments.

Moreover, Mr. Sekabi underscored the pivotal role of fairness, transparency and alignment with socio-economic realities in tariff adjustments. He stressed that the affordability and accessibility of electricity services for households and businesses across Lesotho directly hinge upon the integrity of tariff applications.

In response to the situation, he has urged LEC to promptly release its audited financial statements for the fiscal year ending March 31, 2023 in adherence to statutory timelines. 

He emphasized the importance of timely disclosure of financial information to ensure transparency and foster meaningful stakeholder engagement in the tariff consultation process.

Mr. Sekabi further advocated for stakeholders to be granted adequate time to conduct a thorough review of the tariff proposal, assessing its reasonableness and alignment with socio-economic realities.

Meanwhile, revelations surfaced during a recent meeting between LEC and the Public Accounts Committee (PAC) held in October last year. The LEC report addressing queries on the Audit Report on Consolidated Financial Statements of the Government of Lesotho was scrutinized for discrepancies. 

Discrepancies included false information presented to PAC, contradicting findings reported by the Auditor General. Notably, the Auditor’s Report highlighted LEC’s failure to reconcile financial statements periodically, leading to significant variations in reported amounts across different years.

The unfolding situation underscores the importance of transparent and accountable financial practices within public utilities such as LEC, as stakeholders continue to advocate for equitable and sustainable electricity services in Lesotho.

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