Mohloai Mpesi
QUEEN ‘Mamohato Memorial Hospital (QMMH) has again come under fire from Parliament after the Public Accounts Committee (PAC) uncovered that the hospital spent more than M8 million without the required authorisation, raising fresh concerns over its financial management.
The latest revelations emerged on Thursday when QMMH officials and the Ministry of Health appeared before the PAC as part of its ongoing inquiry into the hospital’s governance and financial affairs.
The hearing forms part of a wider parliamentary probe into the referral hospital, which has already exposed concerns over governance structures, irregular staff appointments and the institution’s salary framework.
According to QMMH Internal Audit Manager Hlasa Hlasa’s July 2025 audit report, the hospital used more than M8 million in internally generated revenue without the approval of the Chief Accounting Officer, Managing Director Dr ‘Makhoase Ranyali.
Presenting his findings to the Committee, Mr Hlasa said the money was collected through hospital services and deposited into the QMMH revenue fund before being used to finance operational expenses without the necessary authorisation.
“I found that M8 million of revenue was used without any approval or authorisation from the Chief Accounting Officer at the time. It was used to pay for hospital expenditure.
“The money collected by the hospital through our QMMH fund can be used for some expenditures, but it needs to be approved by the Chief Accounting Officer,” he said.
Mr Hlasa said he became concerned after discovering that the revenue collected during the financial year was no longer reflected in the account at year-end. He was informed that the funds had been used to settle hospital expenses.
The explanation, however, failed to convince PAC members.
Committee member, Dr Tšeliso Moroke, questioned whether the auditor had verified, through supporting documents, that the suppliers had in fact been paid.
“So you were given a verbal explanation, without supporting documentation. What convinced you the money was used for expenditure?” Dr Moroke asked.
Mr Hlasa said he relied on the hospital’s bank statements, which showed payments had been made to suppliers.
PAC chairperson, ‘Machabana Lemphane-Letsie, pressed further, asking whether he had obtained documents identifying the suppliers and confirming the amounts paid.
Mr Hlasa admitted he had not.
“We might have had suppliers owed M8 million, and taken that money from another fund to pay them. Were you able to verify that supplier A was paid this much, and that the amount tallied with the bank transaction?” Dr Moroke asked.
“No, it was not like that,” Mr Hlasa replied.
Ms Lemphane-Letsie noted that the internal audit itself classified the expenditure as unauthorised and questioned how the auditor could conclude the payments had been legitimate without documentary proof.
“Your query says unauthorised, as if the reason was sound but the person who used the money simply did not seek authorisation. Are you sure the suppliers were paid if you saw no documentation confirming it?” she asked.
“I did not see the suppliers. I only saw the financial statement, which indicated payments of salaries and suppliers. I am not sure the suppliers were paid, because I did not get into procurement,” Mr Hlasa responded.
QMMH Finance Manager, Tšele Sehlabo, explained that the hospital previously operated a single bank account into which both government subvention and internally generated revenue were deposited. The accounts were only separated during the last financial year.
“We had one business account where our subvention and revenue money was kept. We then created a separate account for revenue only. The report shows how much subvention has been transacted and how much revenue has been collected,” he said.
Asked to explain who had been paid with the M8 million, Mr Sehlabo said the hospital had likely resorted to using internally generated revenue after exhausting its government subvention.
“While we were paying suppliers, we found the remaining amount was lower than the revenue on hand, meaning part of the revenue was used to pay suppliers,” he said.
Ms Lemphane-Letsie dismissed the explanation, saying financial controls should have prevented such a situation.
“Sometime ago, you wouldn’t sign a cheque without money in the bank because it would bounce and you would be charged for withdrawing recklessly. Transacting from the bank is a process that starts from the books — you would know before going to pay that you no longer had money.
“If you signed off M8 million for suppliers knowing there was no budget for those lines, you knew you were paying from revenue instead,” she said.
Asked whether he accepted that the hospital had violated the Public Financial Management and Accountability (PFMA) Act, Mr Sehlabo conceded the institution had breached the law.
“I concede that we were wrong and breached the PFMA. We are on a trajectory of fixing things,” he said.
The Committee also questioned QMMH officials over what it described as generous salaries and allowances, including a professional development allowance paid to employees.
Human Resource Manager Tsietsi Polane defended the benefit, saying it compensated staff for the absence of study leave and limited access to sponsorship from the Manpower Development Secretariat.
“QMMH employees need the professional development allowance. They don’t have the means to study, and we don’t have study leave,” he said.
However, Ms Lemphane-Letsie rejected the explanation, arguing that the Manpower Development Secretariat funds eligible Basotho pursuing further studies.
She challenged Mr Polane on whether the hospital had ever verified that recipients actually used the allowance for professional development.
“Are you telling me that as HR manager, you have never verified whether this allowance has been used for its purpose? You are given study leave to better your work, but this is a free ride — there is no time frame, and no evidence anyone has actually studied. You receive it whether you go to school or not. The output does not matter,” she said.
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