Praneeta Prakash 
[File Photo]
The Ministry of Lands and Mineral Resources is tightening its grip on outstanding state lease rent payments, implementing new internal policies and eyeing a revamp of the Land Information System.
The focus on arrears collection emerged after a Cabinet meeting discussing the status of state lease rental arrears from 2017 to 2022
In 2017, 16,913 active leases were charged over $13 million in annual rent and by the end of the year received over $14 million.
At the end of each calendar year, the Ministry charges 12% interest on state lease rental accounts which are in arrears.
The highest revenue recorded to date was in 2019 whereby the Ministry received over $16 million from the rent and arrears.
This was out of the 18,273 active lessees.
It says from 2020 to 2022, the number of active leases increased from 18,675 to 19,859 resulting in the increase of annual rental to over $16 million.
The increase in annual rent came about due to the issuance of new leases and rezoning of leases on State lands as rezoning to higher uses normally increases rental charges.
Another factor is the increase in sub-divisions which causes numerous leases to be issued over subdivided lots.
As of 31 July 2022, rental arrears were over $38 million, inclusive of the annual rent for the current year which is around $15 million.
The reasons for rental arrears given by tenants include financial constraints, pending estate matters, existing legal cases and absentee lessees.
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