Land Board loses out on revenue collection

Tapela Morapedi | Wednesday March 29, 2017 15:09

The attorney made the comment as part of her presentation on revenue collection at the just-ended strategy formulation retreat here. She pointed out that the Land Board has, over the years, been unable to effectively collect the lease rentals due from the lessees for various reasons.

Masara-Mabeza noted that Land Board allocates, amongst others, plots for commercial or industrial use and that commercial plots attract subsequent issuance of lease agreements, which require payment of rentals on an annual basis.

She cited lack of valid contracts in the form of unsigned and uncollected leases as a common problem that has frustrated the efforts of the Land Board to collect rentals. She said this makes it difficult to enforce the purported agreements between a lessor and a lessee.

Masara-Mabeza explained that the difficulty is that the Land Board is usually unable to find a leg to stand on when the debt has accumulated and warrants litigation, emphasising that an unsigned lease means there is no contract at all.

“The risk this also brings is that our overall debt may be seriously overstated as the reality that there are no agreements signed, sinks in,’’ she explained.

She stressed the need for a complete check and reconciliation of the actual value owed and monies calculated from unsigned leases.

“This will go a long way in saving the organisation funds as well as reputation as in some instances, the Court process is commenced and legal expenses incurred, only to discover that there is no contract to enforce,” she said.

She added that another common challenge is lack of focused and coordinated office that deals with revenue collection and credit control.

The Land Board attorney noted that there is need for legal messengers who are well-versed in the service of Court processes and credit controllers whose mandate will be to ensure that debts are serviced and due revenue collected timeously.

Intense follow-ups of clients, updated debtors’ contact information and constant stakeholder engagement are some of the possible solutions that Masara- Mabeza said will assist the organisation in implementing a proper and effective revenue collection strategy.

Prior to her presentation, Ngwato Land Board secretary, Neo Mothobi had pleaded with her team to bare it all by fairly criticising each other so as to highlight the burning issues bedeviling the organisation.