2006 - the Transformation Resource Centre

Transformation Resource Centre
Annual
Report
2006

Contents
Message from the Chair 3
Director’s statement 4
Democracy and Human 5
Rights
Public Participation 5
Local Government 6
Exchange Programme 6
Conflict Management and
Prevention in Schools 7
National Election 7
Water for justice 8
Social and Environmental
Impact Assessments 8
Livelihoods Activities 8
Survivors of Lesotho Dams 8
Ombudsman Enquiry 9
On the Wrong Side of Development 9
Library 10
Procurement of Books and Journals 10
Membership 10
Library Users’ Review Session 10
Internet Facilities 10
Information and Communication
Work for Justice and Litaba tsa Lesotho 11
Anthology 11
Summary of Events in Lesotho 11
Reading Competition 11
Small Arms 11
Radio Programme 12
Police Symposium 12
Financial Statements 13
Auditor’s Statement 13
Revenue fund 14
Balance sheet 15
Annual Report 2006

Nchafatso Sello
Chairperson
2006 was marked by many events which
contributed both positively and negatively
in the promotion of democracy and human
rights in the country. This is the main focus
of the Transformation Resource Centre (TRC).
For many years Basotho seemed
reluctant to voice their concerns regarding
maladministration and acts of corruption
in the public service. But, 2006 became a
year of change in which the public’s resolve
against unpopular government practices
and policies was unabated. This gave an
impression that the public is fast becoming
conscious of its democratic rights and
is able to hold government accountable.
A living example was the criticism of the
car scheme in which statutory position holders
benefited. The issue caused heated debate and
anger among the public. This took government
by surprise as was reflected in its poor
public relations strategy to handle the issue.
Moreover, the nation was shocked by
high profile assassinations and attempts
on prominent people’s lives. These included
the slaying of prominent politician, Bereng
Sekhonyana, the Clinton Foundation volunteer,
to mention but a few. To date, these heinous
crimes have not been solved. The questions
that kept on bugging the nation were: why
are they happening? Are they politically
motivated? Why have the police not made
breakthroughs in the investigations? Is
proliferation of small arms the cause?
Through its different programmes and projects,
the TRC contributed immensely in raising
public awareness to actively participate in
decision making and government through
different avenues. In our efforts to aid in
the general response to crime, the TRC has
embarked on a project to raise awareness
Annual Report 2006
about the dangers of illegal firearms. The
project intends to set up more than 90 gunfree
zones in the country by the end of 2007.
Furthermore, the calling of snap elections
created confusion and debate among the
politicians and the voting public. The main
concern was whether the Independent
Electoral Commission (IEC) would be able to
prepare for a successful election in the short
space of time. Many fears were on whether
specific logistical issues pertaining to elections
would be worked out given the limited time.
Many also believed that the establishment
of a new political party, the All Basotho
Convention (ABC) by the former Minister of
Communications caused panic in the ruling
party, forcing the prime minister to call for early
elections to seek a new mandate and possibly
to catch the opposition off-guard. Most
people, especially those in the urban areas,
particularly the youth, had lost interest in
elections. The ABC was like an agent of change
which the urban voters had been waiting for.
We still have to witness if such change in the
political sphere of this country would bring
the necessary development that we all want.
Basotho women, especially those who
are married, had been treated like minors.
They were in no position at all to make any
major decisions without the authority of
their husbands. A married woman would
not even buy land or apply for a loan without
the written consent from her husband.
Such kind of a law was preventing women
to engage in activities which could assist
them to improve their economic situation.
It was also a clear violation of their human
rights and that was also unconstitutional, as
the constitution clearly stipulates that no one
should be discriminated as a result of his or her
gender. However, the approval of Legal Capacity
of Married Persons Act 2006, which intends
to remove all forms of discrimination against
married women, has been long overdue. This is
a major achievement in the country but there
is still a long way to go and one still wonders
whether the married women are now aware that
they have the same rights as their husbands.
These and many other challenges have
prompted the TRC to take a serious look at
its programming and advocacy methods. We
are currently looking to grow the organisation
to be able to respond strengthen existing
programmes and add new ones. Our strategy
also needs beefing up with more creative
approaches to make our work more effective.
We invite you to join us in this endeavour.
Chair’s Message

Director’s Statement
Director
Matšeliso Ntsoelikane
Annual Report 2006
In 2006, Transformation Resource
Centre (TRC) faced a lot of challenges
yet it was able to grow and increase its
budget and staff members. The Church
Development Service in Germany (EED)
continued to be the main donor for
the organization, providing the much
needed financial resources for all the
programmes. However, in 2006 they
decided that they would not longer
provide funding for the Water for Justice
programme. Christian Aid, which had
also been supporting the TRC finally
pulled out and their reason being that
their organization no longer wanted to
work in Southern Africa as they had a
feeling that in other regions in Africa
there is a lot of work to be done than in
southern Africa. The news was very sad
indeed. How would TRC cope with only
one major donor? Would that mean
the end of Water for Justice which
has contributed a lot in addressing
the needs of the communities which
have been socially and economically
negatively affected by the Lesotho
Highlands Water Project (LHWP)?
People know TRC as a result of the
important role it has been playing in
fighting for the socio-economic rights
of the LHWP affected communities.
Many intensive efforts were made
to make sure that the TRC could still
have sufficient financial resources
to run all its programmes effectively
and efficiently. Under the Democracy
and Human Rights Programme the
Open Society Initiative in Southern
Africa (OSISA), funded a 2 year project
which is aimed at enhancing service
delivery capacity of local authorities
at Thaba Bosiu and Matsieng wards
in the Maseru district. In collaboration
with the Catholic Relief Service (CRS)
and Catholic Commission for Justice
and Peace (CCJP) through the financial
support of Irish Aid, TRC embarked
on a one year project which focused
on raising awareness regarding
gender issues so that women in the
country would be in a position to
enjoy an environment where their
rights are recognized and protected
at the national and local levels. The
programme also managed to secure
funding from the Danish Embassy
through the Southern African Institute
of International Affairs (SAIIA) in
collaboration with the Institute of
Democracy in Southern Africa (IDASA)
which will start in 2007 – 2009. The
main objectives of this partnership
are to empower parliament to fulfil
its constitutional mandate, to raise
the visibility and image of parliament
and to increase public participation
in the parliamentary process. This
was a result of intensive studies
carried out by SAIIA throughout SADC
countries to find out the best ways
to enhance the work of parliament.
IDASA and American Embassy
continued to support the Democracy
and Human Rights Programme though
small grants which were intended to
promote public participation in politics.
The Water for Justice Programme
received the much needed funds to
avoid its closure as a result of lack
of funding. The Australian AID funded
the programme to continue its work
particularly on improving the livelihood
of LHWP affected communities. The
Green Grants though the International
Rivers Network, the Canadian Church
Service and OSISA supported the
programme in its advocating work of
fighting the socio-economic rights of
the LHWP affected communities. The
grants were used solely for the purpose
of participating in the public hearings
conducted by the Ombudsman, to
follow up on outstanding issues for
communities affected by the LHWP and
educating communities in Lesotho about
the proposed Lesotho Water Policy.
The Information and Communication
Programme, among many of its major
achievements for 2006 organised an
International Symposium on Police
Labour Relations in collaboration
with Police and Prisons Civil
Rights Union (POPCRU) and the
Lesotho Mounted Police Service
Staff Association (LMPSSA). The
symposium attracted a number of
participants from various countries
such as America, Netherlands and the
whole of the southern Africa region.
Dealing with issues of democracy and
human rights poses a lot of challenges
as it takes time to see an impact and
results are not easily measurable.
However, the Transformation Resource
Centre is still committed to grow
as an organisation of governance,
bring parliament closer to the people
and to be a referral centre for good
governance and human rights issues.

Programmes Achievements
Democracy and Human Rights
Councillors and chiefs at a conflict management
workshop in Thaba Bosiu.
Villagers enjoy reading Work For Justice in one of
the public gatherings by TRC
Annual Report 2006
Enhancing Public
Participation in
Governance Issues
Basotho people do not fully
participate in issues which affect
their daily lives. They do not
exercise their rights as they have
a major role which they can play in
influencing politicians when they
make decisions. Elected members
of parliament are not accountable
to those who have put them in
power as they do not at all report
back to their constituencies. With
the assistance of the Institute
of Democracy in Southern Africa
(IDASA), the TRC intensified its
efforts to raise public awareness
in relation to the important role
they cam play when participating
in governance issues. The focus
was on how to engage citizens
with policy bodies, how to monitor
policy implementation in order to
enable effective service delivery,
how to make inputs into the laws
which come before parliament
and also how to analyse the
national budget to ensure that
the objectives of the Millennium
Development Goals and the Poverty
Strategy Policy are achieved.
Furthermore, public awareness
was raised in the form of public
gatherings which were held in
various villages within the districts
of Maseru, Berea, Thaba-Tseka,
Mokhotlong and Qacha’s Nek.
As a way of bringing parliament
closer to the people and instilling
democratic principles to the
Basotho people the organisation
made it possible for high school
students to visit the parliament.
This was also done to make young
people to be interested in politics
and to fully understand how
parliament operates. About 15
high schools had that opportunity
of visiting the parliament.
Teachers of the concerned schools
appreciated the work done by TRC
as it had made their work easier.
In 2006, as a way of
enhancing public participation
in parliamentary issues, the
government of Lesotho proposed
the establishment of the
Parliamentary Reform Committee
(PRC) which was aimed bringing
parliament closer to the people.
The TRC in partnership with IDASA
organized civil society organizations
to make their submissions on
how parliament could effectively
and efficiently implement its
mandate. It was recommended
that the current constituency
offices be used as offices which
every citizen regardless of his
or her political party affiliation
could make submissions which
would in turn be forwarded to
parliament. The district offices
should be established and the
concerned officers need to focus
on issues such as sensitization of
the communities in relation the
proposed bills, the work of the
portfolio committees, petitions
made to the parliament, how to
critically analyse the national
budget and institutionalized
parliamentary days. However, it is
still yet to be seen if the civil society
submission would be considered
as due to political environment
which prevailed in 2006, it
was difficult to put pressure on
the political authorities to act
accordingly. However, in 2007
the organisation is planning to
continue advocating for such new
developments as if implemented
well they could contribute a
lot in developing our country.

Local Government
Local government is only one year old yet there
has been a lot of expectations from the public
in terms of quick and improved service delivery.
Conflicts between the new local councillors
and the chiefs intensified as the chiefs felt that
their powers were being taken away by the local
councillors. To prevent further conflicts which
could negatively affect the important role which
both the chiefs and local councillors play in
community development, the TRC worked hand
in hand with other organizations such as Centre
for Conflict Resolution in South Africa, Lesotho
Council of NGOs (LCN), the Development for
Peace Education (DPE), the Rural Self-help
Development Association (RSDA), the Ministry
of Local Government, Women and Law in
Southern Africa (WLSA), the Lesotho Mounted
Police Service (LMPS) and the Master of
the High Court to address such problems.
It was noted that in terms of service
delivery there was no improvement at all and
this was due to financial constraints as the
central government had not yet decentralized
financial resources. However, due to efforts
made by the TRC, the Ministry of Local
Government and other stakeholders there
seemed to be major progress in improving
the capacity of the local councillors. The
roles of the chiefs, local councillors and
community members were clarified and in
areas which were covered within the districts
of Maseru and Quthing all the stakeholders
are clear as to what is expected from them.
The Open Society in Southern Africa (OSISA)
funded the programmes through a project
which focused on enhancing service delivery
of local councillors within Thaba-Bosiu and
Matsieng wards. The programme provided the
communities, chiefs and local councillors with
intensive training in relation to their expected
roles, functions and responsibilities in ensuring
that the local government becomes a success.
The concerned communities were assisted to
form development committees for different
development issues and came up with action
plans which they should implement as per their
priorities. The committees were introduced to
the relevant government ministries for more
assistance in the implementation of their
action plans. The project has been used as
an advocacy tool to show the communities
that with little assistance from the outsiders
they could still realize their dreams of
developing their communities. Activities such
as land reclamation, construction of small
roads, and the protection of springs and
establishment of home gardens do not need
assistance from the central government.
Exchange Programme
Through the assistance of the Norwegian Ministry
of Foreign Affairs, the TRC received an
employee from IDASA and sent one to IDASA
as way of improving the capacity of the two
organizations. The participants were expected
to spend at least nine months with the host
country to learn and contribute in the activities
of the host organisation thereby sharing
information, skills and knowledge. The Norwegian
government also invited the representative
of the organisation to attend a 1 week
meeting in Norway whereby about more than
300 participants from more than 20 countries
through out the world discussed and
shared ideas on how the participating organizations
could fully benefit from the exchange
programme. The meeting also gave TRC a
good opportunity of networking with other
NGOs which are dealing with the same issues.
TRC led the community of Thaba Boisu on a public
works campaign
Ms. Tiisetso Madikhetla spent time with TRC on
Norwegian Fredskorpset Exchange from Idasa
Annual Report 2006

Conflict Management and
Prevention in schools
The organization worked with a number of
schools to manage and prevent conflicts which
might affect negatively the education of learners.
Leadership training were conducted for
school prefect so that when there are misunderstandings
between the teachers and
students, the representatives of the students
could hold discussions with the management
of the school to solve their problems without
students going into strikes which normally
have major consequences such as destruction
of school property and suspension of classes
and students. Where students were on strike,
TRC manage to seat down with the school
management and prefects to discuss solutions
before it’s too late for students to be taught
well and be prepared for their final examinations.
With such interventions from TRC, the
number of strikes in schools has gone down
Voters casting their dual vote for constituency and the party vote
National Elections
The Minister of Communications, Science and
Technology resigned and formed a new party
called All Basotho Convention (ABC). The formation
of this party attracted a lot of attention
and mostly to the youth who had long lost interest
in politics. It was also a threat to the ruling
party as some of its members crossed the floor
in the parliament and joined this new party. As
a result the King with the advise of the Prime
Minister called a snap election. That put all the
stakeholders under a lot of pressure and the
TRC in collaboration with the Lesotho Council
of NGOs had to immediately educate the voters
and prepare teams to monitor the climate
during the political campaigns, registration of
voters by the IEC including the actual voting.
The Ruling LCD still commands huge support
Voters on polling day
The new All Basotho Convention made an emphatic presence on
the political stage
Annual Report 2006

Water For Justice
Social and environmental
impact assessments
The programmme had a number of meetings with
the stakeholders pertaining to the proposed
water and environment projects such as the
Lesotho Lowlands Water Project (Metolong
Dam), upgrading of the Maqalika reservoir,
the establishment of a disposal area by the
Maseru City Council, The Thaba Bosiu Cultural
Village and the Sehlaba Thebe National Park.
In the meetings the programme emphasized
on the importance of conducting social and
environmental impact assessments before the
projects could start as a way of mitigating any
negative social and environmental impact on
the well being of the affected communities.
Public mobilization and awareness
raising were conducted at Metolong
community regarding the anticipated social
and environmental effects of the proposed
Metolong Water Project. Through the pubic
gatherings the communities were mobilized
to voice out their concerns and demand their
rights during the pre-feasibility, environmental
impact assessment and post construction
phases. Both the communities and the
authorities were made aware of the importance
of public participation in the project.
Livelihoods Activities
The programme in collaboration with
Snowing Mountain Engineering Company
(SMEC) which is a consultancy firm responsible
for facilitating, managing and coordinating
development projects within the communities
affected by the LHWP conducted a series
of public consultation at Ha Lejone, Katse,
Muela and Mohale villages. The aim of the
public consultations was to facilitate the
identification of the development needs and
priorities of the affected communities. Focus
was on the establishment of small livelihoods
projects so that the communities can be
able to take care of their households needs.
Financial assistance was sort from the
Australian Aid to help the programme to
intensify its efforts on livelihoods projects within
the communities who were resettled to make
way for the construction of the Mohale dam.
Australian Aid provided the programme with
M210, 000.00 to help the affected communities
to engage in organic farming which is affordable
and sustainable as the communities mostly
use locally available agricultural iputs. The
project started towards the end of the year
and in 2007 its impact in terms of bringing
the intended positive change on the lives of
the concerned communities would be seen.
However the 54 households from Ha Makotoko
and Nazereth villages were assisted with
garden tools (Digging forks, spades, rags and
watering cans) and vegetable seeds (tomatoes,
green beans, carrots, beetroot, spinach,
radish, butternut and onion) to start vegetable
gardens within their households. The same
households were also provided with intensive
and practical training on organic farming with
the assistance from an organization called
the Rural Self Help Development Association.
Survivors of Lesotho Dams
The programme continued to assist a community
based organization called Survivors of Lesotho
Dams (SoLD) to further pursue the Lesotho
Highlands Water Authority (LHWA) to address
the needs of the affected communities. A three
day workshop was conducted to provide the
members with leadership skills so that they
could be able to lead the affected communities
in terms of collecting their complaints and
bring them forward to the LHDA authorities.
Despite the drought vegetables were grown to support
livelihoods
Families can now rely on home-grown vegetables to
sustain themselves
Annual Report 2006

Following the intervention of SOLD with the
assistance of the Programme Officers the
Thetsane resettled community each received
an individual compensation of M7, 617.17 for
poor construction of their houses. It was quite
an achievement as the communities had been
crying to the LHWA to address such complaints
and with that money the households were
able to rectify such defects from their houses.
The houses which were without burglar proof
bars were fitted and also those who had
problems with the geysers were repaired.
Ombudsman Report and
public hearings
The Ombudsman produced a big report
concerning the complaints form the affected
communities as a result of the construction of
the Mohale dam. The Ombudsman discovered
that the LHWA delayed to implement most of
the recommendations made by the Lesotho
Highlands Water Commission (LHWC) in
relation to delay of compensation payment to
the affected communities. The Ombudsman
made a recommendation that if communities
are receiving their compensation late, when
LHDA finally pay them they should include
the interest as per the commercial lending
rate. As a result of the pressure from SOLD,
TRC and Ombudsman LHDA decided to form
a commission of enquiry and audit team to
provide it with findings and recommendations
regarding the management and administration
of the compensation scheme. The Ombudsman
in collaboration with TRC also a series of
public hearings regarding the complaints
from the affected communities in Katse
community. Among the major complaints
from the communities was the fact that
communities quality of live has worsened as
a result of the construction of the Katse dam.
The Ombudsman is yet to produce a report
regarding the hearings and TRC is planning to
take legal action regarding major complaints as
the Ombudsman has no legal authority to force
LHDA to implement his/her recommendations.
On the Wrong Side of
Development
With an assistance from Green Grants
and International Rivers Network, TRC
produced a book called “On the Wrong Side of
Development; Lessons Learnt from the Lesotho
Highlands Water Project”. The book focuses
on the economic and social negative impact
of the LHWP on the affected communities. It
addresses the problems of the LHWP as seen
through the eyes of the communities which are
directly affected. TRC organized a big launch of
the book. All the stakeholders were invited and
LHWP affected communities gave their touching
life experiences of the failures of the LHWP to
keep most of their promises. The leading local
newspaper Public Eye published an article on
front page regarding the launch of the book..
The Ombudsman, Sekara Mafisa, listened critically
to the grievances of the resettled communities
Communities receive feedback on environmental
issues at public hearings
Field worker Mothusi Seqhee speaking at a public
hearing
Annual Report 2006

Library
Procurement of Books and
Journals
The programme procured 19 periodicals and
683 books on theology, conflict, psychology,
fiction, management, accounting, research,
history, democracy, health, conflict, leadership,
local government, education, economics and
women and gender. The books increased
the number of the library collection and
thereby satisfying the requirements in terms
of quality and quantity of books demanded
by the library users. Reports and Journals
on issues such as Trade Union World report
and Development and Cooperation Report
were donated by TRC friends and members.
Membership
168 members renewed their membership, 122
people became new members of TRC Library, 8
TRC members while 2 organisations joined as
TRC members. This year TRC library recorded
highest quarterly readers of an average of
1,962. This has encouraged the organization
a lot in terms of valuing the contribution it is
making in the country in terms of improving
the level of literacy, education and research in
Lesotho which without the general development
of the country would be negatively affected.
Library User’s Review
Session
A review session was held for all the people who
use the Library and they were required to filled
a questionnaire which was distributed to them
and the questionnaire focused on how to improve
the library. As a result of recommendation
made by the readers the following changes
were made: the opening hours were increased,
cooling and heating facilities were installed
and right quality of books were purchased.
Internet Facilities
The programme purchased 4 computers and a
printer as a way of improving its library services.
The computers were procured to provide
internet, typing and printing facilities to the
library users. This assisted the users with the
very much need facilities as they are now able to
find all the services in one place unlike before.
This also contributed a lot in increasing the
number or people who visited the TRC library.
10 Annual Report 2006

Information and
Communication
Work For Justice and
Litaba Tsa Lesotho
The programme continued to produce
newsletters quarterly both in English and
Sesotho. The first issue focused on the police
reforms which were intended at providing
effective and efficient public police oversight
mechanism. The information provided the
readers with the in depth work the police and
why there was a need for reforms to improve
the police service and how far was the process
of the reforms. What was more important to
the Basotho people was information of what is
the role of police in a democratic country is and
how the citizens demand could services from
the police could and where police abuse their
powers how could they deal with such incidences.
The second issue discussed major economic,
social and political events in Lesotho since
independence as well as the country’s
development achievements and challenges.
The newsletter was an insert to the Public
Eye newspaper. The newsletter attracted a lot
of attention from other media organizations.
News Africa and Republic of South Africa FM
radio stations requested for interviews with
TRC on the subject of Lesotho’s milestones in
its 40th independence anniversary. The third
issued examines the political parties in relation
the coming national election early in 2007.
Anthology
The programme through the assistance of
John Gay who is the former employee of TRC
based in United States of America compiled
an anthology of the past Work for Justice
Newsletters which were published from
1983 to 2004. 250 copies were produced
and widely distributed to the organization’s
partners, locally, regionally and internationally.
Summary of Events in
Lesotho
Professor Ambrose from the National University
of Lesotho (NUL) on a quarterly bases provided
TRC with a short summary of the current events
which happened in the country. The summary
of events was posted on the TRC website and
that attracted a lot of online visitors who were
interested in knowing what was happening
within the country.
Reading competition
The National Reading Competition for the high
school students was held in collaboration with
the Ministry of Education. The aim to the reading
competition was to promote the reading culture
in Lesotho particularly for young students. 18
high schools participated in the competition.
Students were given 2 passages to read from
and were rated on how well they read. The
winners got books as prizes and the event
received a wider media coverage auguring well
with TRC’s library membership and literacy work.
TRC friends
11 Annual Report 2006

Small Arms
There is global concern about the wrong
usage of small arms by some the community
members to commit criminal offences. United
Nations had developed a programme of action
against small arms. In Lesotho there had been
a lot of incidences whereby prominent people
had been killed or attacked. As a result of such
incidences in line with UN programme, TRC
organized a friends meeting in collaboration
with the police to discuss the role of civil
society in the prevention of the misuse of
small arms. The meeting drew a lot of publicity
for the organization as it was covered by a
number of local newspapers and it made the
front page on one local newspaper. TRC also
produced an article on the political attacks in
the country and was published in a leading
newspaper and that promoted a lot of debate.
International Symposium
on Police Labour Relations
TRC organized and hosted the international
symposium on police labour relations in
collaboration police union and police association
in South Africa and Lesotho respectfully.
The symposium attracted more than 180
participants form overseas and regionally.
TRC through the symposium managed to
raise its profile, as it received international
exposure and recognition for hosting such
big events and received financial boost.
TRC was represented during the
preparatory meeting of the United Nations
Programme of Action on Small Arms
organized by the International Action Network
on Small Arms (IANSA). After the meeting
the programme made press releases and
distributed them to all the media houses
within the country. The press release focused
on the successes and challenges facing
the implementation of the programme.
Radio Programme
In partnership with Catholic Radio station
TRC had a slot every Monday to discuss currents
events happening in the country and mostly to
deepen understanding of the Basotho people
regarding democracy issues. Panelists were
normally invited during the radio programme to
strengthen the level of debates by the public.
Members of the Lesotho Mounted Police Staff Association during the
International Symposium on Police Labour Relations
12 Annual Report 2006

Financial Statements 2006
Report of the Independent Auditors to the Members of:
TRANSFORMATION RESOURCE CENTRE
We have audited the financial statements for the year ended 31 December 2006 of which the income statement and balance
sheet included in this report are an extract and signed copies can be obtained from Transformation Resource Centre
in Maseru.
Basis of Opinion:
We conducted our audit in accordance with International Auditing Guidelines. These guidelines require that we plan and
perform the audit to obtain reasonable assurance that, in all material respects, fair presentation is achieved in the financial
statements. An audit
Includes an evaluation of the appropriateness of the accounting policies; an examination, on a test basis, of evidence
supporting the amounts and disclosures included in the financial statements; an assessment of the reasonableness of significant
estimates, and a consideration of the appropriateness of the overall financial statement presentation. We consider
that our audit procedures were appropriate in the circumstances to express our opinion stated below.
Opinion:
In our opinion, the financial statements fairly present the financial position of the Centre as at 31 December 2006 and the
movement in its revenue fund for the year ended on that date.
Moores Rowland
Chartered Accountants (Lesotho)
13 Annual Report 2006

Revenue Fund
For the year ended 31 December 2006
2006 2005
M
M
Revenue
Funding (Note 1) 3 215 337 1 560 579
Interest Receivable 12 643 8 244
Membership fees 13 775 12 648
Miscellaneous income 29 202 46 368
Rental and use of facilities 45 350 72 739
Sales 9 508 9 304
Total Revenue 3 325 815 1 709 882
Expenditure
Democracy and Human Rights 528 591 449 993
Water for Justice 487 366 421 121
Library Resource Centre 356 258 198 849
Information and communication 579 742 258 909
Organisational and Capacity Development 80 653 189 549
Central Administration and Co-ordination 805 369 728 100
Other Costs 91 459 96 519
Acquiring & Developing Programme and Admin Centre
Transfer of Property Costs 76 802 -
Total - per project financial reports 3 006 240 2 343 040
Less capital costs reflected as fixed assets (201 654) 120 404)
Adjustment for non-cash items: - Depreciation 221 679 234 418
- Other 36 273 -2
Total Expenditure 3 062 538 2 457 052
Net Movement for the year 263 277 (747 170)
Balance of Fund at the beginning of the year 1 018 978 1 766 148
Balance of Fund at the end of the year 1 282 255 1 018 978
14 Annual Report 2006

Balance Sheet as at 31 December 2006
2006 2005
M
M
EMPLOYMENT OF CAPITAL
FIXED ASSETS 3 939 656 3 894 493
Current assets
Debtors and prepayments 3 560 18 892
Funds at call and on deposit 720 608 390 075
Bank balances and cash 209 445 136 277
Total Current assets 933 613 545 244
CURRENT LIABILITIES
Creditors and accruals 208 571 148 782
Total current liabilities 208 571 148 782
NET CURRENT ASSETS 725 042 396 462
Total employment of capital 4 664 698 4 290 955
CAPITAL EMPLOYED
Capital Contributions 3 382 443 3 271 977
Revenue Fund 1 282 255 1 018 978
Total Capital employed 4 664 698 4 290 955
Note 1 FUNDING
2006 2005
Evangelischer Entwicklungsdienst e.V 1 039 375 949 085
Australian High Commission 209 750 -
Christian Aid 322 615 458 255
Green Grant 16 844 87 715
IDASA 277 866 35 194
International Rivers Network 54 929 -
Miscellaneous 19 075 30 330
Open Society 668 973 -
POPCRU 546 500 -
United Church of Canada 59 410 -
Total Funding 3 215 337 1 560 579
15 Annual Report 2006

TRC
1 Oak Tree Gardens
Qoaling Road
Old Europa, Maseru 100
Tel: +266 22314463
www.trc.org.ls