Published On: Wed, Mar 28th, 2018

Cft confirms concerns Dutch Parliament on finance Caribbean countries

andrebosmanTHE HAGUE - The Dutch Parliamentary Committee for Kingdom Relations has been updated today by the Financial Supervision Council (Cft) on the state of public finances of the Caribbean parts of the Kingdom.

The conversation that was also meant to meet the new chairman of the Cft, Raymond Gradus, took place behind closed doors. Afterwards, Member of Parliament André Bosman told Rene Zwart of ABC Online that the image sketched by the members of the Cft about the financial situation of each island confirmed the concerns in The Hague.

“Since the news constitutional structure of October 10, 2010 it has only got worse on most islands. This is understandable for St. Maarten because of Hurricane Irma. That they have a financial problem as a result, I understand, but budget-wise it must be in order. If you do not follow the procedures, you have no insight into where the shortcomings are and you cannot adjust. Curaçao is in a dip, but I expect the government to take the right measures to restore the situation there. In Aruba, government finances are completely out of the lead. The transition from one government to another has shown that government expenditure has not been under control for some time. What has been left behind, for example, is to cut in the government apparatus. The personnel costs are enormous.”

The deterioration of public finances in the three countries has taken place under the watchful eye of the Cft. Nevertheless, Bosman does not want to attack the committee too hard. “What I think is that the Cft is going to be a little sharper. In my opinion, the mandate is sufficient enough for that.” The Dutch MP thinks that the term 'sound financial management' provides sufficient tools to tighten up controls. “That also applies to the governmental investment tax. These are not covered by the supervision of the Cft, but the dividend policy has a direct impact on public finances. In my opinion, the Cft, therefore, has the right to view the annual accounts of the governmental investment boards,” says Bosman.

Later this year, the parliamentary committee will speak with Undersecretary Raymond Knops of the Interior and Kingdom Relations about the latest reports from the Cft. In addition, there will be an independent evaluation to determine whether this supervision should be extended this year. In view of the budgetary problems in all three countries, it seems to be certain in advance that the supervision will be resumed for several years.

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