Auditor-General flags $12.6m in unpaid court fees owed to the State; calls for urgent recovery by Judicial Department

The Auditor-General has disclosed that the Judicial Department is owed more than 12.6 million in outstanding court fees, comprising fines and costs awarded to the State. The 2023 Report on the General Administration Sector, tabled in Parliament, shows arrears of revenue totaling 12,686,423 as of July 31, 2023, with a warning that further delays increase the risk that revenue may not be recoverable and could ultimately be written off.

Key recommendations from the report include:
– Strengthen the Fine Enforcement Unit to actively recover arrears from defaulters.
– Seek collaborative recovery assistance from agencies such as Fiji Revenue and Customs Service, Police, Land Transport Authority, Immigration, and Fiji National Provident Fund, including consideration of write-offs where appropriate.
– Upgrade the Judicial Department’s database to capture essential identifiers (FNPF and Tax Identification Numbers, driver’s license, passport details) to more easily track defaulters.

In its response, the Judicial Department acknowledged the problem, explaining that it has limited authority over the execution process, which largely sits with the Police Department. The department noted that a Fine Enforcement Unit has been established and that resources, including vehicles, have been allocated to assist police officers in executing warrants and collecting arrears. It added that officers execute warrants when they are available and that a memorandum of understanding with the Land Transport Authority is in place, with record reconciliation ongoing to aid recovery.

Additional context and value for readers:
– This issue mirrors broader public-finance governance challenges highlighted in other Fiji audit reports, where arrears and revenue collection gaps have prompted calls for stronger cross-agency collaboration and improved data systems.
– The emphasis on data upgrades (tying fines to unique identifiers and official documents) could help reduce defaulter pools and improve tracking, potentially accelerating recovery without resorting to write-offs.
– Observers will want to monitor how the new enforcement arrangements interact with police capacity and whether any additional legislative or administrative changes are pursued to empower timely collection.

Summary:
The Auditor-General’s findings spotlight a sizable backlog of unpaid court-related revenue and a need for tighter enforcement and inter-agency cooperation. By strengthening the enforcement unit, improving data capture, and coordinating with key agencies, the Judicial Department aims to recover funds and safeguard state revenue, while navigating the constraints of its authority over warrants.

Potential implications and outlook:
– If successful, improved recovery could boost public revenue without immediate tax increases or new levies.
– Ongoing reconciliation and inter-agency memoranda suggest a move toward more integrated debt collection practices across government services.
– Watch for updates on whether any write-offs are approved and how the enhanced data systems perform in reducing future arrears.

Editor’s note for readers:
Readers may recall similar arrears and governance concerns raised in other sectors of Fiji’s public finances. This case underscores the importance of data-driven enforcement and cross-sector collaboration in protecting government revenues and maintaining public trust.


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