Rental Board Advised To Review Debt Collection Strategies

Long outstanding rent due to the Public Rental Board (PRB) has prompted the Public Accounts Committee to call for a review of the board’s debt collection strategy. And this is by making necessary arrangements with its tenants.

A review of the 2017-2018 Audit Report on Statutory Authorities by the committee, which was tabled in parliament last week, noted that 40.4 per cent of the debtors had balances totaling to $43,432, in that period, which were outstanding for more than four months.

The report noted that tenants, who failed to pay rent for four consecutive weeks or accumulate arrears equivalent to four weeks should be issued with a reminder.

“The audit findings indicated that the debt collection process is either not effective or consistent which results in outstanding balances,” the report stated.

“Significant receivables will affect cash inflow from the board’s mainstream of revenue, which will affect the ability of the board to pay off its recurring expenditures and more importantly its debts.”

The committee recommended that the PRB review its current collection strategy and make necessary arrangements with tenants. The report further noted that PRB applicants must be married or single or is employed and the sole breadwinner of a family.

The applicant shall be employed full time earning weekly gross income (WGI) of $80 to $317.

“PRB should not accept applications below the WGI of $80 income,” the report stated.

“It was noted that the auditors were unable to determine if the applicants were the breadwinners of the household due to absence of sufficient information in the application form.”

PRB acting chief executive officer Patrick Veu said the number of tenants with arrears fluctuates and close to 70 per cent of tenants have arrears.