Duncan has to postpone Justice Park, Cft advises

POSTED: 03/15/13 12:17 PM

St. Maarten – The financial supervisor Cft gave the government of St. Maarten already in august 2011 a positive advise for a 48 million guilders loan to buy developer RGM out of the new government administration building on Pond Island. It also told Justice Minister Duncan that he has to suspend his Justice Park plans.

“The intended savings on rental costs and the efficiency of one government building were important considerations,” the Cft writes it its (positive) advice about the country’s 2013 budget. “The new government administration building will have to be completed as soon as possible.”

The draft 2013 budget mentions that St. Maarten intends to borrow 30 million guilders this year for capital investments and another 20 million from 2014 on. In the elucidation with the budget two other loans are mentioned: the 48 million guilders loan for the government administration building and one of 37.4 million for capital investments made in 2012.

The Cft will assess these last two loans at the moment the government presents them to the financial supervisor. The Cft notes that these two loans are reported at a very late stage. The loan for the government building still has not been effectuated, while the second loan is for capital investments that were done in 2012.”In effect this is a loan to restore the liquidity position,” the Cft writes in its budget advice. “Based on the articles in the Kingdom law (on financial supervision – ed.) it is only possible to borrow for capital investments.”

The Cft furthermore notes that the budget does not take into account the lease construction for the so-called Justice Park. “This construction will most likely create a burden for the space under the interest burden standard if it is executed. This way it will put pressure on other investment possibilities. These plans will have to be suspended as we have also indicated in our letter to the minister on February 5.”

The Cft underlines that lease-constructions are loans according to the Kingdom law and the accountability rules.”They have to be entered into the capital account of the budget within proper financial management. This will have to be done conform the minister’s plans in the first budget amendment.

 

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Comments (2)

 

  1. Conflem says:

    A building that was reported to cost 16.000.000, and whereas the owners already received 9.000000 in rent, plus who knows how much to complete, now is going to cost another 48.000.000? Even uncle Sam can’t afford these types of losses.

  2. Michael says:

    So, Duncan has to call his loan something else. Good try Duncan. I am sure he will still find a way to repay his good friend with the Box and all the others.

    Good job Mr. Haar on this Hypnotic scandal. What I really like is it is using public record documents and that is pretty hard to dispute. Why is there not an inquiry into Duncan while the Illidge scandal is being swept under the huge rug?

    Please keep the pressure on Mr. Haar. I only buy the paper for your writings. Start a personal web site of of all your writings. They are pure gold.