State lease arrears hit $43M

Government technology roll-outs and reforms have failed to stop ballooning State lease arrears, which now exceed $43 million.

Minister for Lands and Mineral Resources Filimoni Vosarogo told Parliament this week the figure includes January 2025 rent charges and interest from previous years.

“If we exclude the recent rent charges, we’re still looking at $33.5 million in unpaid leases,” he said.

“That’s not improvement, that’s stagnation disguised as empathy.”

The Government’s interest waiver amnesty, launched last September and ending this month, has already waived more than $1.6 million in interest charges.

While promoted as a compassionate response to the pandemic’s aftereffects, Mr Vosarogo warned it may have encouraged non-compliance.

“Waiving interest without addressing the root causes of arrears sends the wrong message,” he said.

“The message should be: leases are legal obligations, not optional donations.”

The ministry has introduced digital apps, an online payment portal, and stepped-up site visits, but arrears continue to climb.

Some leaseholders remain unaware of their contract terms or lack the means to pay—raising questions about how the system is designed and communicated.

Collections reached $16.7 million in 2022–2023 but fell slightly to $16.4 million last year.

So far this financial year, $12.2 million has been collected, with no guarantee 2025 will beat previous highs.