The Maseru City Council (MCC) has faced scrutiny from the Public Accounts Committee (PAC) following its decision to cancel a M27.3-million contract with SSL Joint Venture for the stabilisation and rehabilitation of the Tšosane dumpsite. The council claims the agreement was unlawful due to a breach of legislative provisions regarding the scale of the contract, yet Parliament has questioned the timing and motives behind the abrupt termination.
Legislative Dispute And Financial Oversight
During a parliamentary hearing on 26 June 2026, Acting Town Clerk Moea Makhakhe argued that the council was compelled to void the contract after the relationship with the consultant deteriorated. Makhakhe cited the failure of the firm to deploy promised engineers and alleged attempts to inappropriately expand the initial scope of work.
The contract could not legally be entered into as doing so contravenes legislative provisions governing contracts of this nature and magnitude.
However, the PAC leadership challenged this narrative, pointing to the council’s previous recognition of the contract’s validity. PAC Chairperson Machabana Letsie noted that the MCC had already approved an initial invoice for M2.73-million submitted on 20 February 2026 for a status quo report before later asserting that the underlying contract was illegal.
You cannot terminate based on a process that you have long passed. The law is not going to be on your side. This contract is now an obligation.
Environmental Implications For Residents
The administrative deadlock stems from a High Court order issued in February 2026, which mandated the immediate closure and rehabilitation of the long-standing Tšosane dumpsite. The project aims to transition municipal waste operations to a new facility at Tšoeneng, providing relief to residents who have endured environmental and health grievances for years.
The failure to resolve the contractual dispute threatens to stall these essential rehabilitation efforts further. The committee emphasised that the municipality cannot simply ignore its existing obligations or withhold payment for services already rendered due to internal oversight errors regarding procurement laws. Future sessions of the PAC are expected to further examine the council’s procurement processes and the potential liability resulting from the contract’s cancellation.