Public Accounts Committee Questions Maseru City Council Over Cancelled M27.3 Million Tšosane Dumpsite Consultancy Contract

The Public Accounts Committee (PAC) has placed the Maseru City Council (MCC) under intense scrutiny following the cancellation of a M27.3 million consultancy contract linked to the Tšosane Dumpsite rehabilitation project. The matter has attracted significant public attention because it involves a major environmental infrastructure initiative as well as concerns over procurement processes and contractual obligations. During a Public Accounts Committee hearing held last Friday, members of parliament questioned council officials about the circumstances surrounding the cancellation of the contract. The hearing became particularly contentious after the successful bidder, SSL Joint Venture, appealed to Parliament to intervene in the dispute. The case highlights the importance of transparency, accountability and compliance with procurement laws in the management of public projects.

During the hearing, the Maseru City Council admitted that it had cancelled the consultancy contract after determining that it had been awarded unlawfully. Council officials informed the committee that the decision to terminate the agreement was based on concerns regarding the procurement process rather than the performance of the appointed consultant. This admission prompted committee members to question how such a significant contract could have been awarded if the required legal and procedural standards had not been fully met. The Public Accounts Committee sought explanations regarding the procurement process and the decisions that ultimately led to the cancellation. The hearing underscored the committee’s oversight role in ensuring that public institutions remain accountable for the management of taxpayer-funded projects.

The contract had been awarded to SSL Joint Venture, a consortium comprising SECO, SMEC South Africa and Land Survey and Engineering (LSE). The consortium had been appointed to provide consultancy services for the stabilisation, rehabilitation and eventual closure of the Tšosane Dumpsite. This project represents an important environmental initiative aimed at addressing waste management challenges while improving environmental safety around one of Maseru’s major waste disposal sites. Consultancy services included technical planning, engineering expertise and project oversight to ensure that the rehabilitation process met the required environmental standards. Such projects require careful planning because they involve long-term environmental protection and public health considerations.

Beyond the closure of the existing dumpsite, the consultancy contract also covered additional responsibilities related to the development of future waste management infrastructure. The appointed consultants were expected to undertake the design and construction supervision of the Tšoeneng Sanitary Landfill, which is intended to replace the Tšosane Dumpsite once rehabilitation is completed. The project also included long-term environmental management measures designed to ensure that the new landfill operates safely and complies with environmental regulations. Developing modern sanitary landfill facilities is considered essential for improving waste management systems while reducing environmental pollution. The successful implementation of such infrastructure has the potential to benefit communities by supporting cleaner and more sustainable waste disposal practices.

The dispute before Parliament extends beyond the cancellation of the contract itself. SSL Joint Venture informed the Public Accounts Committee that the council has also refused to pay M2.7 million for work already completed under the agreement. According to the company, this amount represents 10 percent of the total contract value and relates to consultancy services that had already been delivered before the contract was terminated. The consortium argues that payment is due for work performed in accordance with the agreement before its cancellation. The disagreement over compensation has become one of the central issues under discussion during the parliamentary proceedings.

From the perspective of the consulting consortium, the cancellation has created uncertainty regarding contractual obligations and financial commitments. Companies involved in large infrastructure projects typically invest significant financial and technical resources during the early stages of project implementation. Consultancy work often begins with feasibility studies, technical assessments, engineering designs and planning activities that require considerable expertise and professional input. When contracts are terminated unexpectedly, disputes regarding compensation for completed work frequently arise. Resolving such matters often depends on the contractual terms, procurement regulations and the findings of any legal or parliamentary review.

For the Maseru City Council, the decision to cancel the contract appears to have been motivated by concerns about ensuring compliance with procurement legislation. Public institutions are required to follow strict procurement procedures designed to promote fairness, transparency and value for money in the awarding of government contracts. Where irregularities are identified, authorities may be compelled to cancel contracts to protect public resources and uphold legal requirements. However, such decisions can also create financial, legal and operational challenges, particularly when work has already commenced. The balance between correcting procurement irregularities and managing contractual obligations remains a complex issue in many public sector projects.

The Public Accounts Committee’s involvement demonstrates Parliament’s oversight responsibility in monitoring the use of public funds and examining the conduct of government institutions. Through public hearings, the committee seeks to establish the facts surrounding financial decisions while ensuring that officials remain accountable for their actions. Cases involving large public contracts often receive close scrutiny because they involve significant taxpayer resources and can affect the delivery of essential public services. The committee’s examination of the Tšosane Dumpsite project reflects broader efforts to strengthen accountability and improve governance across public institutions. Such oversight plays an important role in promoting public confidence in government administration.

The environmental significance of the Tšosane Dumpsite rehabilitation project further increases the importance of resolving the dispute efficiently. Proper rehabilitation of landfill sites helps reduce pollution, improve environmental health and create safer living conditions for surrounding communities. The development of the Tšoeneng Sanitary Landfill is also expected to modernise waste management systems in Maseru by providing a more sustainable alternative to the existing dumpsite. Delays caused by contractual disputes may affect project timelines and postpone the environmental benefits anticipated from these developments. Ensuring that the project proceeds within a lawful and transparent framework remains in the public interest.

The ongoing parliamentary examination of the cancelled M27.3 million consultancy contract illustrates the importance of strong procurement systems, transparent governance and responsible financial management in public projects. While the Maseru City Council maintains that the contract was cancelled because it had been unlawfully awarded, SSL Joint Venture continues to seek payment for work it says was completed before the termination. The Public Accounts Committee is expected to continue examining the circumstances surrounding the procurement process, the cancellation decision and the outstanding payment dispute. The outcome of these proceedings could provide important lessons for future public procurement and contract management in Lesotho. As the matter progresses, many stakeholders will be watching closely to see how accountability, legal compliance and public interest are balanced in resolving this significant dispute.