Lesotho earmarks M50 million for unfinished royal palace
The project, started in 2011, has seen its cost balloon to M461 million from an initial M136.7 million.
The construction of Lesotho's new Royal Palace in Maseru has been allocated an additional M50 million to resume work. This brings the total projected cost for the palace to M461 million, a significant increase from its original M136.7 million budget. Construction began in 2011 and was initially scheduled for completion in May 2013.
An audit report from May 2025, reviewed by the Senate Committee on Government Assurances, revealed overpayments of more than M74 million to consultants and the contractor. Payments were reportedly made without sufficient contractual justification or proof of work completed. The ministry also lacked documentation for the appointment of Nyolohelo Mohale as Clerk of Works/Principal Agent, despite M5.49 million in payments.
The government stated that the M50 million allocation must be properly accounted for with transparent procurement procedures and clearly defined contractual obligations for all parties. Their Majesties King Letsie III and Queen ’Masenate Mohato Seeiso have been waiting for an official residence for over 15 years.
Why it mattersLesotho taxpayers face a nearly half-billion maloti bill for a royal residence that has been under construction for over 15 years due to administrative failures.