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$20 Million in Rent Arrears: Can It Be Collected?

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The Ministry of Lands and Mineral Resources’ permanent secretary, Raijeli Taga, has stated that the $20 million in rent arrears is collectable. In a review of the 2022 Audit Report on the Economic Sector held last week, Taga revealed that the largest single arrear for one lessee amounts to nearly $2 million.

Taga expressed confidence in the ability to recoup the total arrears, noting that many of the lessees operate commercial businesses and rental properties on the land. “They are supposed to be paying their rent, as it is stipulated in their agreements,” she remarked, emphasizing that it is only fair for them to fulfill their financial obligations.

She indicated that waiving off this debt would result in a loss for the government, urging the collection of the owed funds. To manage these arrears, her team has been conducting site visits to connect with lessees and follow up on payment notices. Taga mentioned that some lessees have already proposed to make partial payments towards their overdue amounts. The ministry is facilitating face-to-face meetings with those in arrears, aiming to support them in making timely annual rental payments while addressing their financial situations.

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