Dalley: "This review identified a number of weaknesses in the operations including lengthy delays in the completion of transactions." - FileThe following is the full statement to Parliament last Tuesday by Horace Dalley, Minister of Land and Environment, on matters pertaining to the irregularities in the Land Titles Division of the National Land Agency.
LAST WEEK Thursday, the Prime Minister indicated to the nation that a number of irregularities had been discovered at the Land Titles Division of the National Land Agency and he instructed the Fraud Squad to begin investigations on these matters. He further indicated that today I would make a statement in this honourable House on the matter.
In 1996, the National Land Policy of Jamaica was tabled in this honourable House. It recommended the formation of the National Land Agency, which brought together four (4) Government agencies: Land Valuation Department, Office of Titles, The Survey Department and The Lands Department.
Under the Public Sector Modernisation Programme (PSMP), the NLA was established last year. Two divisions were reviewed as a matter of priority in order to quickly resolve the levels of service provided. With the assistance of the consultants retained by the PSMP, a thorough assessment of the work of the Land Titles division was undertaken.
This review identified a number of weaknesses in the operations including lengthy delays in the completion of transactions. Most significantly, however, was the identification of a number of irregularities in several transactions.
Based on preliminary internal investigations carried out by the staff of the NLA, external forensic investigators were called in. Samples of several documents were reviewed and analysed and it was discovered that the primary reason for these irregularities was the evasion of stamp duty and transfer tax, resulting in serious loss of revenue.
The Government places high importance on the security of records within the Land Titles division. We recognise that the records within this office protect the interests of landowners, financial institutions and any other persons or institutions having interest in land, or in conducting business related to land.
CATEGORIES OF IRREGULARITIES
Arising out of these investigations the following categories of irregularities were identified. These are: Category 1 Titles produced outside of the Land Titles Division :
In this case, false Certificates of Title have been produced by persons outside of the Division.
Category 2 Evasion of transfer tax and stamp duty.
We have discovered that the most prevalent instances of irregularity involve the evasion of transfer tax and stamp duty where millions of dollars in revenue have been lost.
There are two situations that apply. The first situation is where fraudulent documents were presented on which endorsements were made on the title. In other cases, fraudulent endorsements were made on the title without the payment of stamp duty and transfer tax.
An example of one case identified, where endorsements were fraudulently made on the title, no stamp duty or transfer tax was paid. Assessments have since been done by the Taxpayer Audit and Assessment Department and total revenue loss in this single case involving 12 strata lots amounts to $14.5 million.
Category 3 Illegal acquisition of duplicate certificate through lost title applications. Under section 82 of the Registration of Titles Act, whenever a duplicate Certificate of Title is lost or destroyed, the registered owner of land can apply to the Registrar of Titles to cancel the lost Certificate of Title and to register a new one.
Cases of fraud by way of this legislative provision have been identified. I wish to point out that in many cases the Registrar of Title's signature has been forged.
FRAUD SQUAD INVESTIGATIONS
The Fraud Squad has been busy with their investigations and I call on the public to co-operate fully with them and to report known irregularities to the National Land Agency's Hotline: 1888-991-LAND (5263) or 948-9520.
IMPROVEMENTS IN
LAND TITLES DIVISION
The National Land Agency has already improved its operations in the past few months in order to further enhance its efficiency. You will recall that I outlined to this honourable House some time ago a number of areas in which action had already been taken. Let me repeat some of these:
The scanning of all original Certificates of Title and other supporting documents is proceeding. To date, we have completed 230,000 of the 450,000 titles on record; the installation of surveillance cameras in high security areas; the restriction in the movement of visitors in certain areas; the appointment of an operations manager; and the commissioning of a task force to further review the operations of the division.
Several other modernisation initiatives will be implemented during the course of this year. It is our view that the desired efficiency within the Land Titles Division will only be accomplished through improved training, public education and the use of technology. This will be achieved partly through the GOJ/World Bank funding under the PSMP.
I call on those persons and institutions who have to relate to the Land Titles Division to understand and appreciate the measures being undertaken and call for their full support and co-operation. May I commend the president of the Land Surveyors Association of Jamaica for his statement on these matters. We look forward to working with that association and other professional bodies who use the services of the Land Titles Division.
I commend the leadership of the NLA, the Registrar of Titles and the staff in this division for their effort and determination to resolve these issues.
