The government is currently facing over $33.5 million in arrears from state-owned land leases, as confirmed by Lands and Mineral Resources Minister Filimoni Vosarogo in Parliament on Monday. This figure represents the outstanding payments owed to the government as of June this year.
Minister Vosarogo reported that the total arrears due by June 2025 would exceed $43 million, which includes projected rent charges of $9.6 million due in January 2025, along with 12 percent interest on any outstanding amounts from previous years. When excluding these anticipated charges, the net arrears stand at just below $33.5 million.
In response to these economic challenges, the ministry is putting in place several strategies to enhance the collection of outstanding arrears. These strategies include closer engagement with lease holders, offering waivers on interest for those genuinely affected by financial difficulties, and conducting site visits to better understand the challenges faced by lessees. This approach aims to encourage a culture of accountability and empathy while ensuring lessees uphold their financial responsibilities.
Drawing upon insights from previous discussions, it is noted that the Ministry has outlined its commitment to address the situation collaboratively. There are indications that many lessees who operate businesses on the leased land have begun making efforts to arrange partial payments as a means of addressing their debts.
Overall, despite the significant challenges posed by these arrears, the government’s proactive measures signify a hopeful trajectory toward improved financial governance and enhanced partnerships with those renting state land. By fostering an environment of cooperation and understanding, the ministry aims to create a more sustainable approach to land management and financial accountability moving forward.
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