THE Kuantan and Rompin District and Land Offices (PDTs) have recorded quit rent arrears amounting to RM34.3 million and RM11.4 million respectively, with one case dating as far back as pre-Merdeka 1950s.

The first series of the 2016 Auditor General’s Report revealed that the Kuantan PDT’s arrears, comprising RM29.15 million in unpaid quit rent and RM5.15 million in unpaid fines, involved 56,442 properties.

Of the total, 5,296 had accumulated RM15.8 million in arrears over more than 11 years.

For the Rompin PDT, the owed quit rent – RM10.97 million in unpaid tax and RM510,000 in fines – involved 7,662 properties.

Of the total, 645 had accumulated RM621,635 in arrears over more than 11 years.

The report stated that auditors took a sample of 218 properties under the Kuantan PDT that had owed more than RM10,000 in quit rent arrears over five years.

Auditors found that the bulk of the arrears involved properties owned by private companies (41.8%), followed by individual owners (34.8%) and government agencies (17.9%).

A sample of seven properties was taken in Rompin. Of the total, three had individual owners, while two belonged to government agencies.

“Based on the audit’s view, the unpaid arrears and fines over a long period is… because the two PDTs efforts to reduce arrears have been inefficient,” said the report.

It said of the 32 government-owned properties with quit rent arrears in Kuantan, one had owed tax since 1973, with arrears and fines amounting to RM302,993.

For the properties owned by private companies, there were 59 cases in both Kuantan and Rompin with arrears amounting to RM5.16 million, including one company that had not paid since 1971, resulting in RM142,033 being owed.

For properties with individual owners in the Kuantan and Rompin samples, 125 owed RM972,887, including one owner in Endau who owed RM16,997 after stopping quit rent payment in 1953.

“Efforts to collect individual-owed arrears are also not satisfactory because the sending of reminders and the 6A Notice was not enforced,” said the report.

It found that the collection of arrears and unpaid fines for leasehold land under the Kuantan and Rompin PDTs was under par due to ineffective enforcement and surveillance.

It also found that the quit rent review did not follow the gazetted rates.

“The Land and Mines Offices and PDTs in the state need to conduct the right kind of promotion for ratepayers with arrears, and take enforcement and surveillance action against landowners with high arrears.

“Leasehold land has to be endorsed immediately to ensure the quit rent can be collected, and any quit rent review and postponement must be done according to the given instructions,” said the report.

It recommended that the Temerloh and Rompin district councils make improvements in collecting assessment arrears.

It also advised Pahang to take corrective and preventive measures to overcome financial management weaknesses after the state’s performance saw a slight drop last year. – August 1, 2017.