PHILIPSBURG:--- The General Audit Chamber published its Mini Audit Review on government housing policy today. The review highlights ongoing challenges in the government’s approach to managing office housing policy and rental costs. It follows up on findings from previous audits in 2021 and 2022.
The report provides a frank assessment of the progress made—and the challenges faced—toward achieving greater efficiency and financial accountability by the government in managing office space and leased properties. According to the report, while the government set an ambitious goal – as part of the Country Packages - of reducing office rental costs by 20% from 2020 to 2025, actual expenditures tell a very different story. Far from declining, rental expenditures have increased, from ANG 17.2 million in 2020 to ANG 19.3 million in 2022. Rising costs and delays in implementing cost-cutting measures highlight the need for an adjusted strategy and actions to meet original objectives and ensure targets remain achievable.
The continued absence of a specific office housing policy is central to these identified challenges. Without a framework to guide decisions, such as leasing versus owning properties, the government will have limited ability to optimize office space and achieve meaningful cost savings. Other findings from the review identified the need for more progress in creating a detailed inventory of government-owned and rented buildings. The Audit Chamber believes the lack of reliable data undermines strategic planning and hampers transparency and accountability in budgetary processes.
Despite prior recommendations from the Audit Chamber, the government has yet to engage landlords in meaningful negotiations to reduce rental costs. This is a missed opportunity, especially considering the result of an Audit Chamber survey that indicated many landlords were open to discussing reductions.
The Audit Chamber stresses that protecting public funds is a financial necessity and a fundamental responsibility of the government toward the taxpayer. “Efficient financial management is the foundation of good governance,” the Chairman, Mr. Alphons Gumbs, stated. “The upward trend in rental costs and the lack of meaningful progress on policy creation are concerning.”
The General Audit Chamber facilitates Parliament with objective assessments that inform their oversight. The audit is a wake-up call for addressing systemic issues. The report is available on the General Audit Chamber’s website: www.arsxm.org.
