Cft warns that government entities have to follow the rules: Massive failure to file annual accounts

POSTED: 08/3/14 10:17 PM

St. Maarten – The board for financial supervision Cft has not received a single 2013 annual financial account from government-owned companies and foundations. In a letter to Finance Minister Martin Hassink dated July 4, the Cft demands that the minister makes sure that these entities submit their annual accounts on time. If they have not been completed, the Cft wants to receive the provisional versions of these documents.

Small and mid-sized entities have to submit their annual accounts within 8 months after closing their financial year; large entities have to submit their accounts within 6 months.

In its letter, the Cft points out that St. Maarten has to apply legislation that meets the internationally accepted standards for corporate governance. “Adequate supervision of compliance with the Corporate Governance Code in general and supervision of the financial position is important.”

Base on the Corporate Governance Code, annual accounts have to be completed within five months after closing the year.

The letter contains an overview of the government-owned companies and foundations and their level of compliance going back to 2008. For 2013, not a single entity has submitted an annual account.

None of the thirteen active limited liability companies submitted an annual account for 2011 either, and only seven of them submitted such an account for 2012.

The Princess Juliana Airport Holding, utilities company Gebe, the St. Maarten Harbor Holding Company and the Sint Maarten Telephone Company (TelEm) submitted annual accounts three times between 2006 and 2013: in 2009, 2010 and 2012. Post NV has never filed an annual account since 2008 and Winair did not do much better. Since 2008, the airline only filed an annual account for 2012.

The Airport Security Financing Company filed an annual account for the last time for the year 2009.

The fifteen foundations that are listed as government-entities are notorious in their failure to submit annual accounts. The last year all of them filed an annual account was 2009, and in 2010, only the Nature Foundation and the St. Maarten Medical Center did. None of the foundations filed an annual account for 2008.

The Mental Health Foundation, the White and Yellow Cross, Turning Point, the St. Maarten Housing Development Foundation, the Small Business Development Foundation, No Kidding with Our Kids Foundation, Safe Haven, the Philipsburg Jubilee Library, Upkeep Sports Facilities and the National Heritage Foundation are among the entities that did not file annual accounts since 2010.

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