Cft budget 2009 does not meet criterion

February 06, 2009 8:45 AM

The budget of Curacao for 2009 does not unconditionally meet the criterion set in the Order in Council for the Kingdom (AMvRB). This is stated in the advice that the Council of financial supervision (Cft) sent to the Governing Body (BC) this morning. The Cft urges the BC to come with a concrete plan in order to meet these conditions.

The Cft says that ‘it looks balanced on paper’, but the college doesn’t have enough certainty whether the budget is indeed complete, how reliable the estimates are, and how realistic the financing scheme is.
“After all, the College didn’t have any recent annual account to use as frame of reference; there are only tentative figures available for the more recent years.” The College also mentioned that still not sufficient insight is allowed into the budget structure. According to the Cft, this has impeded the College to make a clear judgment on the relation between the policy planning, the choices of the BC herein, the activities connected to that, and the costs that results from that.

The Cft noted in an explanation that it was to be expected that Curacao could have comply with the criterion at this moment. “The quality of the budget and the financial management has for years left a lot to be desired. The complexity and the gravity of the deficits lead to the fact that it cannot be expected that it can be counterbalanced within a few months.” The College advices Curacao to draw up a concrete action plan with activities, and draw up time planning s with risks for possible activity failures, and with that the corresponding management measures.
The BC must periodically report the progress of the implementation to the Cft. The Cft is pleased though that the BC is willing to tackle the current problems, and the College says that if the island government is really implements the yet to be drawn up plan, the College looks forward to the future with confidence.

But considering the complexity and the gravity of the yet existing deficits, the College suggests coming to agreements at governmental level to phasicly link the process of the debt restructuring to the realization of concrete steps. A strict monitoring of this is essential, says the Cft. “A sound financial situation is ultimately not quite conceivable without such start. The start of the debt restructuring must be strictly connected to the permanent reinforcement of the implementation of the budget and the financial management that must come from the island territory self.”

The BC considered the advice in the weekly meeting today. Commissioner Mike Willem (Finance, PAR) said this morning: The Cft holds a press conference this afternoon and everybody can hear the tenor of their advice. We as BC will study the advice and go public with our thought in due time.”

According to the AMvRB, an advice of the College contains motivated findings, which are necessary to give recommendations as regards the way a received draft- or fixed budget can be brought into line with the standards. When the Cft makes recommendations, the BC has 14 days after receiving these, to report to the Cft to what extent and how these recommendations are considered, and if it is under discussion, the BC must tell the Cft how long it will take.

The Cft advised on the 2009 budget of the Land Netherlands Antilles last month. This budget moderately complied with the norms set in article 15 of the Decision temporary financial supervision Netherlands Antilles, Curacao, and St, Maarten that took effect on December 10, 2008.

(Source: National Newspaper Amigoe)

February 4, 2009