Maseru, June 10 — Members of the Public Accounts Committee (PAC) have expressed concern over the unaccounted M3.09 billion from the government's cash balance.

This after the Auditor General presented the annual report of the consolidated financial statements for two years ended March 31, 2024, before PAC on Thursday.

The report indicated that the consolidated statement of cash receipts and payment indicated that the government had a cash balance of M5. 91 billion as at March 31, 2024 whereas note 15 to the Consolidated Financial Statements (CFS) revealed a total cash balance of M2. 82 billion, resulting in a discrepancy of M3. 09 billion between the two balances.

PAC Chairperson Mrs. Machabana Lemphane Letsie stressed that M3.09 billion is a substantial amount that cannot simply be overlooked, noting that the issue has persisted since 2021 or before when the discrepancy stood at M6.1 billion.

" M3. 9 billion is not an amount of money that can be ignored and say we start on a clean slate" she stressed, arguing that if the funds remain unaccounted for, it means Central Bank of Lesotho (CBL) is not audited.

She urged the Auditor General to pursue forensic auditing, insisting that the matter extends beyond the jurisdiction of the Directorate on Corruption and Economic Offences (DCEO).

She also demanded clarification on the legal framework governing central bank payments on behalf of the government, including who authorises and instructs the CBL to make such transactions.

Responding to the matter, the Auditor General Ms. Mathabo Makenete explained that the CBL executes payments strictly under instructions from the Treasury through the Integrated Financial Management Information System (IFMIS) or the Public Debt Office.

She also emphasised that no bank, including the CBL, is permitted to authorise payments without the required signatories, indicating that there is currently no expertise and budgetary allocation to conduct forensic audit or any other.

PAC resolved that the Auditor General’s office must submit a proposal for the required forensic audit budget by June 30 so that it could be included into the supplementary budget.

The presentation of the Auditor General’s report on the CFS for the year ending March 31, 2024, before PAC is continuing.