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Lesotho

Delayed projects cost govt millions

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The government has been forced to fork out millions of maloti to complete projects that have been on hold for the past 15 years due to escalating costs caused by protracted delays, poor implementation, and contractor disputes.

It also attributes these delays to lack of institutional and regulatory arrangements, citing that spirited efforts are no being made to complete some of the projects, albeit at a huge cost to the taxpayers.

According the latest report by Auditor General ‘Mathabo Makenete on the government’s financial statements for the year ending March 31, 2022 which was recently tabled in parliament, poor management and lack of coordination between government entities have often resulted in under-utilisation of project funds and unnecessary delays.

Projects of national significance that have been affected include the National Museum and Art Gallery, a new Royal palace, and Phase II of the e-Government Infrastructure Project. The latter is a collaborative effort between Lesotho and the African Development Bank Group (AfDB). It is aimed at enhancing access to reliable digital services for citizens residing in rural and underserved areas.

The AG’s report further warned that there is need to curb the government’s external debt to multilateral institutions meant to provide funding for infrastructure and social benefits.

It also revealed that 22 development projects were audited in the financial statements for the year 2021/22. Some of the projects were started as far back as 2009 and they are still unfinished to this day.

The damning report cited Phase II of the e-Government Infrastructure Project, which is a continuation of Phase I initiated by AfDB in September 2020 and funded to the tune of M231.88 million in form of loans, grants, and contributions from the Lesotho government.

LSL Phase II of the project kicked off in 2020 and it was scheduled for completion this year, but there are fears that it might not be finished on time due to persistent delays.

The AG noted that she was concerned by delays in implementing the project, which was officially launched on September 15, 2020.

She pointed out that Phase II of the e-Government Infrastructure Project outlined a total of 31 planned activities for the first year (2020). However, during the year under review, it was revealed that only 11 activities (35 percent) were completed. Two activities (seven percent) were in progress, while 18 activities, constituting 58 percent, were not implemented at all.

“Consequently, there have been delays and a lack of progress in terms of physical activities since the project’s inception,” the report read.

theReporter has learnt that construction of the National Museum and Art Gallery began in December 2015 and was expected to be complete in December 2017. But up to today, the project is yet to be finished and open to the public.

This long delay has seen the initial budget of the project ballooning from an initial M111 million nine years go to over M170 million in 2021. It is now projected to skyrocket even further, to at least M240 million.

The museum will house cultural infrastructure such as art galleries, film studios, traditional and customary attire as well as craft centres. It will also include an amphitheatre.

The facility is further expected to have a display area, auditorium, office storage facilities, boardrooms and photographic library.

Sigma Construction (Pty) Ltd managing director, Napo Makara, yesterday acknowledged that there had been several delays to the project due the government’s failure to pay the company for work done.

He said work was almost 90 percent complete and they were confident that the project will be finished by the end of this year.

“The exterior is done; what is just left is the flooring and the painting,” he told this publication in a brief interview.

For his part, the minister of tourism, sport, arts and culture, Motlatsi Maqelepo, on Wednesday this week said the government has put aside M50 million to ensure that work on National Museum and Art Gallery is completed within the financial current year.

Maqelepo underscored the significance of the project, saying it is intended to be part of Lesotho’s bicentenary celebrations.

He also explained that Sigma Construction had halted work in 2022 due to non-payment and bureaucratic issues between the ministry of public works and transport, and the responsible ministry at that time – tourism, environment and culture.

“I have convened a series of meetings between my ministry and other stakeholders, including the ministry of public works and transport, to resolve issues hindering the progress of this important project.

“The problems have been resolved, and a memorandum of understanding has been signed by the ministries’ principal secretaries to ensure the project proceeds,” Maqelepo said.

He added that the contractors are expected to return to the site next month to resume work.

Maqelepo admitted that the project has been delayed significantly, leading to increased costs. The signed agreement is now expected to address issues such as financial implications on the project and compensating contractors for the prolonged period of inactivity.

“The unfortunate part is that due to the delays, the cost of the project is ever increasing and unfortunately, this needs to be catered for in the new agreement,” he pointed out.

The minister also emphasized his commitment to seeing the project through and doing away with the project’s reputation as a white elephant.

Asked for comment on the delays in implementing national projects, the public relations officer of the department of development planning, Mpho Mosili, told the publication that they were currently compiling a report on all national projects.

“The report will be released at the end of this month,” she said on Wednesday this week.

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