LRA cleans Fokothi accounts over debt
Lerotholi Polytechnic management has declared the institution “penniless and grounded” after the Lesotho revenue authority (Lra) cleaned the college’s bank accounts over tax the institution failed to remit since 2012.
Fokothi, as the college is better known, owes Lra M14.5 million in Pay-as-you-earn tax and has since taken disciplinary action against those responsible for this debacle.
the college management yesterday told journalists that last week, the authority seized the college’s funds in its bank accounts, leaving them with “zero balances”.
the students’ graduation ceremony, which had been scheduled for tomorrow, has since been cancelled due to the financial predicament, the management further indicated during yesterday’s media briefing.
the college’s registrar and act- ing rector, Hlomohang Majara explained: “We were supposed to hold our graduation ceremony on 28 March 2015, but realised that last Friday, 20 March 2015, Lra, had seized all the money in our accounts.
this was to recover the M14.5 million we have been owing them in Pay-as-you-earn tax since 2012.”
However, the Lra had only managed to collect M7 million from the accounts, “which means we still owe them M7.5 million,” she said.
advocate Majara said since the college’s financial woes started, management had asked for intervention from government, through the ministry of education, to no avail.
this was due to the country’s political instability, which resulted in a change of government midterm, last week.
Fokothi is a vocational college and one of the oldest institutions of higher learning in Lesotho.