The Auditor-General has reported that the Ministry of Rural and Maritime Development and Disaster Management (MRMD) recorded significant arrears of revenue amounting to $2,068,777 as at July 31, 2023, relating to unpaid business and liquor licences.
The report on 2023 General Administration Sector tabled in Parliament last week warned that “delays in recovery of arrears of revenue poses high risk of arrears of revenue becoming irrecoverable and being written off, resulting in loss of Government revenue”.
It recommended the ministry seek approval from the Ministry of Finance and Cabinet “on the way forward for recovery and recording of Arrears of Revenue”.
In its response, the ministry said the matter had been under discussion for several years.
The OAG said in a memorandum dated May 27, 2024, the Ministry of Finance noted the nature of revenue in arrears as identified by the Ministry of Rural and Maritime Development and Natural Disaster mostly consisted of non-renewal of various types of licences.
“We note that MRMD only issues these licences when potential business operators have paid for their respective licences.
“No licence is issued if not paid – no payment, no licence. As such, we are of the view that while these are a form of revenue, they are not considered in arrears.”
The Ministry of Finance has suggested that the ministry seek Cabinet’s approval for the arrears to be formally zero-rised.
