Cft in semiannual report: Financial management still needs major improvement

POSTED: 03/26/13 11:31 AM

St. Maarten – The Board of financial supervision Curaçao and Sint Maarten Cft stated in a press release that the second half of 2012 has brought more insight in the challenges for the public finance of both countries. This demanded diligence in taking drastic yet necessary measures.

The eighth semiannual Cft-report also shows that the financial management still needs major improvement. Up till now none of the two countries have an audited annual report to present to parliament to account for the use of tax money since October 10th, 2010.

Amongst others the instruction and the resolution of the Dutch First Chamber on the objection presented by Curaçao, resulted in more transparency on issues concerning the real financial challenges Curaçao is facing. Since the Kingdom Council of Ministers had to be informed on a monthly basis through the Cft about the financial situation, the substantial problems in different management areas have become clear.

Based on the instruction, Curaçao also had to provide insight in the financial positions of its governmental entities. This made it clear that also in that area the problems are considerable and that this represents a real risk for the public budget. Cft is of the opinion that the Curaçao government has made efforts to comply with the stipulations in the instruction. An important points still remaining is the actual implementation of the proposed structural measures to sustainably correct the budget finances and compensate for the deficits of the past. Cft will closely monitor how the government complies with these sections of the instruction.

The process of setting up a new structure for the new countries Curaçao and Sint Maarten as well as the organization behind them, seems to be a great challenge. For both countries it is important that clear decisions are being made in order to cope with this problem and that more means will be made available for appropriate financial accountability, the Cft noted.

Curaçao and Sint Maarten have started 2013 without a budget adopted by parliament. Also the annual reports of 2010 and 2011 have not yet been approved and are only available in draft. This underlines the necessity for improvement of the financial management. Without the adopted budgets and annual reports within the stipulated terms, adequate policy execution will be troublesome.

“Moreover, these are essential documents for parliament to be able to exercise its role as controller. Reason enough for Cft to actively carry out its supervising role, not only to bring about better provision of information, but also to improve the quality of the financial management,” the Cft stated.

 

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