RSL seizes state-owned corporation’s properties over M35.7m tax debt

Lesotho Housing and Land Development Corporation faces asset auction after failing to settle massive tax bill

MOSA MAOENG and

SEBONGILE MATHE

MASERU – In a significant enforcement action, the Revenue Services Lesotho (RSL) has obtained a court order to seize and auction prime properties belonging to the state-owned Lesotho Housing and Land Development Corporation (LHLDC) over an unpaid tax debt exceeding M35 million.

The Warrant of Execution, issued by the Maseru Magistrate’s Court on September 4, authorises the Sheriff to attach LHLDC’s movable assets. If those are insufficient to cover the debt, the Sheriff is directed to seize and sell two of the corporation’s key immovable properties located in the central business district.

The total judgment debt stands at M35 722 995.38.

According to the court document, this amount continues to attract additional interest at a rate of 22 percent per annum from the date the original tax fell due until it is fully settled. The records indicate that no payment has been made since the judgment was granted.
The two properties specifically listed for potential seizure are:
·Plot No 12284-730, situated in Maseru Central.
·Plot No 12284-731, also situated in Maseru Central.
These properties will be sold at a public auction to recover the owed funds, along with the Sheriff’s costs of execution.
The warrant notes that the LHLDC can avoid the auction if it settles the full amount owed, plus the Sheriff’s fees, before the sale is conducted. Furthermore, if the debt is paid within half an hour of the Sheriff’s arrival to execute the warrant, no further execution costs will be incurred.

The order was signed by ‘Mathabo Mokoko, the Commissioner-General of the RSL, as the execution creditor.

This move highlights the RSL’s intensified drive to collect outstanding revenues, even from major public entities and signals a significant financial predicament for the state housing corporation.