The recently published 2023 report from the Auditor-General has shed light on several pressing financial management challenges faced by the Ministry of Lands and Mineral Resources. This comprehensive audit, which focused on the Economic Services sector, highlighted improvements in financial reporting but also pointed out significant obstacles such as considerable revenue arrears and unspent budgets.
As of July 2023, the ministry reported outstanding revenue arrears totaling $32.8 million. This figure reflects a modest reduction from the $35.8 million noted in the previous year. However, it remains a concerning trend, as the arrears have consistently exceeded $20 million since 2016. The entities responsible for these debts primarily include those with industrial, commercial, and special class leases. In response to this ongoing challenge, the ministry has implemented various strategies, including waiving interest on debts, conducting site visits, and launching media awareness campaigns to encourage timely payments. Nevertheless, the audit suggested that more robust enforcement mechanisms are necessary for effective revenue collection.
Despite a revised budget of $24.5 million for the fiscal year, the ministry only spent $23.1 million, resulting in an unutilized budget of $1.4 million. Much of this underspending is attributed to unfilled vacancies in specialized positions like scientific officers and mining engineers, as well as delays in groundwater development projects.
The audit also reviewed the ministry’s management of trust funds, revealing a current balance of $7.8 million in the Lands Trust Fund and $8.7 million in the Minerals Trust Fund. The Auditor-General underscored the importance of improved financial oversight and more effective budget execution.
Insights from prior articles have emphasized the ministry’s recognition of its outdated leasing system, which has hampered progress in accurately categorizing aged arrears. Permanent Secretary Raijeli Taga and Finance Manager Marika Qalo have shared their intentions to modernize this system to improve monitoring and reduce arrears effectively.
As the ministry embarks on reforms to enhance its financial practices, including a new debt recovery strategy and increased transparency in trust fund management, there is a growing sense of optimism for the future. These initiatives aim not only to fortify financial governance but also to enhance operational efficiency, ultimately leading to improved service delivery for the community and promoting sustainable resource management. This proactive approach signals a hopeful trajectory towards rectifying financial discrepancies and fostering accountability within the ministry.
Leave a comment