The 2023 report from the Auditor-General has brought to light several financial management issues within the Ministry of Lands and Mineral Resources. The audit, which encompassed the Economic Services sector, revealed that despite some advancements in financial reporting, the ministry faced significant challenges including substantial revenue arrears and unspent budgets.
As of July 2023, the ministry’s outstanding revenue arrears were reported at $32.8 million, a slight improvement from the $35.8 million noted in the previous year. However, this amount has consistently remained above $20 million since 2016, with business entities holding industrial, commercial, and special class leases recognized as the primary debtors. To combat this persistent issue, the ministry has initiated several measures such as waiving interest, conducting site visits, and launching media awareness campaigns to encourage timely payments. Nonetheless, the audit recommended the establishment of stronger enforcement mechanisms to ensure more effective revenue collection.
The ministry’s revised budget for the fiscal year was $24.5 million, but actual expenditures only reached $23.1 million, leaving $1.4 million unutilized. The underspending has largely been attributed to unfilled vacancies in specialized roles such as scientific officers and mining engineers, as well as delays in groundwater development projects.
Furthermore, the audit examined the ministry’s management of trust funds, revealing a balance of $7.8 million in the Lands Trust Fund and $8.7 million in the Minerals Trust Fund. The Auditor-General emphasized the critical need for enhanced financial oversight and more effective budget execution.
In related developments, insights from previous articles have highlighted the ministry’s recognition of its outdated leasing system, which has hindered progress in effectively categorizing aged arrears. Permanent Secretary Raijeli Taga and Finance Manager Marika Qalo have communicated plans to upgrade the leasing system, which aims to facilitate better monitoring and reduced arrears.
As the ministry takes steps to reform its financial practices, including the development of a new debt recovery strategy and improving transparency in trust fund management, there is a renewed sense of optimism for the future. These initiatives not only aim to strengthen financial governance but also seek to enhance the overall operational efficiency of the ministry, which could lead to better service delivery for the community and promote sustainable resource management.
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