The Auditor General, ‘Mathabo Makenete, has released an audit report on the financial statements of the Lesotho Electricity Corporation Communications (LECC) for the year ended 31 March 2025, highlighting several key findings.
According to the report, management identified two errors -an additional regulatory expense of M225,172 and a related tax impact of M56,293 that should have been recognised in the previous year, following changes to the calculation of net operating income (NOI) for regulatory fee purposes. However, these errors have since been corrected in accordance with accounting policies.
Furthermore, Makenete said a capital asset purchase of M29,890 was inadvertently capitalised twice, leading to an error in depreciation, which has now been reversed.
Additionally, tax expenses arising from the revaluation of property, plant and equipment were overstated, resulting in an undervalued tax asset and revaluation reserve amounting to M541,376. These too have been corrected.
The audit report was presented before the National Assembly yesterday by the Minister of Energy, Mohlomi Moleko.
