Published On: Mon, Sep 3rd, 2012

CFT: ‘Public Companies 64 million loss in 2010’

WILLEMSTAD – The Committee for Financial Control (CFT) has only received the annual accounts of the Public Companies from 2010. Those of the foundations and other entities were requested but not yet received. The analysis of the annual accounts showed that the Public Companies  have suffered a loss of 64 million guilders in 2010.

In 2009 the Public Companies still made a profit of 74 million guilders. This was according to the midyear report from the Cft. Hereby were some of these Public Entities out of the danger zone but the extent of the shortages of the entities still in the danger zone are rising drastically.

Negative general reserve
At the end of 2010, six of the eighteen active public companies have had a negative general reserve, meaning that these public companies have a cumulative loss since the creation of the company. The end of 2009 there were nine. The two public companies with the highest negative general reserve are Aqualectra (301 million) and the Curacao Dry Dock (162 million).

Continuity problems
The Cft has learned from the media that the expected loss in Aqualectra for 2011 was 81,3 million guilders. If this loss indeed appears in the 2011 annual report , it will take the negative general reserve to 382 million guilders, which is 22% of the total budget of Curaçao. "At an unchanged policy, Aqualectra will cope with a continuity problem, with which it becomes a direct threat to the budget of the country since they are performing a public task", according to the Cft.

Awarness
The Cft is pleased to say that the analysis of the annual accounts was shared with the Ministry of Finance which brought an awareness to the situation. "The task force financial management and policy of the Ministry even wants to take the initiative in the analysis of the 2011 annual report″, according to the committee. The Cft will give an update on this matter in the next midyear report. In addition, during the visit of the committee to the Government of Curaçao was agreed that they will prepare and present an action plan to restore the situation of the Public Companies.

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