Reduced arbitrary asset appraisal authority is necessary to combat corruption

Former President John Dramani Mahama has said that stakeholders must agree that if they are to improve asset valuation in the quest to tackle corruption globally, there must be a limit to using arbitrary powers for asset valuation.

Instead, he said, the stakeholders should amplify tried and tested distinct methods that rely on valuation standards.

Mr Mahama said that overstating the assets and understating their liabilities has led to the crash of some multinational corporations and had reverberating effects on the whole world economy.

In the United States, as recent as the late 2000s, the failure of real estate appraisers to abide by standards led to overvalued properties that are perceived to have contributed to significant mortgage defaults, which impaired the capital reserves and operating ability of many financial institutions and led to a crisis in the world financial system that spread beyond the borders of the US, he referenced.

“As a person who has served in public office at the highest level, let me tease your minds by raising the issue of the requirement for public officers to declare their assets prior to taking office and upon exit from office. This regime of declaration of assets is a useful tool in the fight against corruption, but in many cases is not utilized to maximum effect.

“The assets declaration forms must be filled by the individual prospective public office holder.

“In Ghana, the individual is asked to list all assets and properties they own. Examples are houses, farms, vehicles, jewellery etc. You are also required to assign values to each of these assets,” Mr Mahama said in Ilorin in the Kwara State of Nigeria on Thursday, June 22, 2023, while speaking as a Special Guest of the Nigerian Institution of Estate Surveyors and Valuers conference.

He added “How will physical examination of assets and valuation assist to strengthen the assets declaration regime to assist the fight against corruption? What role can the determination of the net worth of a public officer before and after office assist in curbing the canker of corruption.

“It is good practice that valuation or appraisal organisations require their members to adhere to a particular set of standards. The American Society of Appraisers (ASA) and the Royal Institute of Chartered Surveyors (RICS) insist on standards and performance measurements partly because they wish to avoid the mistakes of their past.

“Performance measurement is not an exact science, but I urge you to allow these indices to guide your noble efforts borne out of your intrinsic motivation to right the wrongs of the past. The Lagos State Real Estate Regulatory Authority, beneficial ownership legislation, and the development of an online portal for planning applications have brought more clarity for example. Through transparency, Nigeria can better tackle corruption in the real estate sector.”