Maseru __ The Maseru City Council has announced that it has achieved a significant milestone in resolving its long-standing tax obligations through a definitive financial settlement, marking a critical step toward fiscal sustainability and autonomous governance.

Public Relations Manager, Ms Lintle Bless said this agreement addresses outstanding arrears originating in 2016 adding that this resolution has been accomplished exclusively through the Council's own financial resources, representing a deliberate shift from historical reliance on partial central government support.

The Council, she said, has executed the initial upfront instalment, with the remaining balance scheduled for finalisation within the current fiscal cycle.

She said the settlement establishes a foundational framework for restoring fiscal stability and public trust and the administration is now focused on developing a sustainable, long-term strategy for rates and taxes to ensure equitable and manageable revenue collection.

Mosala further acknowledged that fulfilling this settlement will necessitate prudent financial management and will impose considerable demands on the Council’s operational resources for the 2026 financial period, also noting that the Council is committed to navigating this obligation while prioritising the maintenance of essential services.

She added that concurrently, the Council recognises the ongoing challenge of additional long-term liabilities, some of which have been outstanding for over six years, and addressing the complete debt portfolio remains a core institutional priority.

‘’The Council emphasises that a successful financial recovery is contingent upon a collective civic effort. It respectfully urges all residents and commercial entities to meet their obligations by paying rates, taxes, and service charges in a timely manner, as this cooperation is vital for the city's continued operational integrity’’, Mosala commented. ‘’To strengthen governance and ensure rigorous fiscal oversight, the Council is implementing a structured capacity-building initiative. This includes the strategic recruitment of specialised expertise into the Finance, Audit, and Procurement divisions to enhance systems, accountability, and the management of internal resources.’’

Mosala said the Council acknowledges that the path to full financial recovery will require sustained effort and discipline. It reaffirms its commitment to transparent governance, stringent accountability, and diligent oversight, saying this independently secured settlement is presented as the first decisive action in a comprehensive effort to achieve a resilient and self-sufficient financial future for the city.

The Maseru City Council owed Revenue Lesotho Services (RSL) about M13 million in taxes and managed to pay M5 million, the remainder of which will be paid within the first quarter of 2026.