The current leasing system that the Ministry of Lands and Mineral Resources have is outdated.
The Ministry of Lands and Mineral Resources permanent secretary Raijeli Taga highlighted this during the submission on the review of the 2022 Audit Report on Economic Sector on Thursday (12/09).
She said the current leasing system was not compatible with the new revised financial system FMIS.
“It cannot work with the current, the new revised financial system,” Mrs Taga said.
“That had also contributed to us defining what is aged arrears and also what is current.
“So, now we are working on a system that will allow us to do that, and so we can monitor and track the arrears that we have and work always to reducing it.”
Manager finance at the Ministry of Lands Marika Qalo highlighted the arrears of revenue for the financial years 2021 to 2024.
“For the 2021-2022 financial year, our arrears of revenue is sitting at $35.8million and in 2022-2023, end of that financial year, the arrears of revenue is around $32.8million,” Mr Qalo said.
“And in 2023-2024, the arrears of revenue is sitting at $32.2million.
“These arrears are inclusive of the current year rental.”
He said there was a reduction in the arrears of revenue in the past three years compared with the revenue collection on land rent.
“This financial year, the total revenue collected by the ministry is around $24.3million. With that, the total land rent is $21million.
“2022-2023 financial year, the total revenue collected was $23million and the total land rent collection was $16.4million.”
Mr Qalo said they had a budget to upgrade the current leasing system.
“The current ground lease system is outdated and, we are so thankful that through the IT audit that was conducted, the ministry was able to receive a budget for this current financial year to upgrade the current system.”
