THE HAGUE--The St. Eustatius Government, accused of financial disorder and improper governance, is facing higher financial supervision. Statia Commissioner of Finance Astrid McKenzie-Tatem stated this after a meeting with the Dutch Ministry of Home Affairs and Kingdom Relations BZK in The Hague on Tuesday.

 

Commissioner McKenzie-Tatem said in an interview that her and her colleague Commissioner Reginald Zaandam of Constitutional Affairs were told in a meeting with top level BZK officials and National Government Representative Gilbert Isabella that Statia's financial household was not in order, that government had given insufficient follow-up to the advices of the Committee for Financial Supervision (CFT) and that so-called preliminary supervision was around the corner.

 

Also, the Statia delegation was informed that the execution of the Multi-Annual Programme for social economic development would be put on hold per direct until the island's financial household had improved.

A financial steering group will be established, consisting of the National Government Representative, Island Governor Gerald Berkel and the two Commissioners. McKenzie-Tatem said the BZK Ministry has rejected Statia's request to provide financial expertise to assist in the process of improving government's financial management.

 

The Statia delegation is now reconsidering its participation in the Caribbean Netherlands Week which started in The Hague on Monday, especially seeing that one of the cardinal issues, the Multi-Annual Programme, has been put on hold for the island.

 

"We are contemplating the reason for being here. What are we discussing then? Does it really make sense to continue having talks? It's just like talking to the wind or beating a dead horse. If this is the attitude of the Netherlands I believe it is a waste of time attending anymore meetings," she said.

 

According to McKenzie-Tatem there is a "concerted effort to destabilise" Statia's new government. Government feels that it is left standing in the cold because of the unwillingness of The Hague to help the island solve the problem.

 

The Commissioner said that she had been in office for a mere two months and that she was not even given a chance to properly investigate the financial state of affairs. She said that a financial picture would also become clear when the 2015 annual account was ready by the end of June. "This will exactly show how big the deficit is, and if it is indeed US $1 million as the CFT is saying."

 

McKenzie-Tatem was not too happy with the conduct of the CFT, which has as its task to supervise and approve the financial household of the islands. "The CFT has been approving budget after budget, amendment after amendment. Didn't they realise anything was amiss before? Why the sudden urge to impose higher supervision? The CFT keeps stating that they are willing to think along with us in getting the financial house in order. Is this thinking along with us?"

 

The CFT has issued several warnings in the past that Statia's financial household was not in order and that deficits were looming. The CFT urged the Statia government to take measures and to either cut cost or raise the revenues.

 

CFT Chairman Age Bakker stated in a June 4, 2015 letter that the CFT would thoroughly analyse the plan of approach of the St. Eustatius Government aimed at improving the financial management. The CFT "didn't exclude preliminary supervision (voorafgaand toezicht)."

 

The Committee asked for an adapted proposal of the first 2015 budget amendment within two weeks, a deadline which McKenzie-Tatem has said cannot be met. The CFT has rejected the first proposal to amend the 2015 budget.

 

Preliminary supervision, a measure that can be imposed based on the Kingdom Law on Financial Supervision, isn't going to help St. Eustatius, said McKenzie-Tatem. "It will not solve the problem." She said that government was very much aware of the financial issues and that it was making a serious effort to address this.

 

The financial control needs addressing, and the civil apparatus needs to become more conscious of the importance of proper finances. "The financial concept has to get through to everybody's head in government. Departments have to know their financial limits and not exceed them. The budget has to be your bible. All these amendments don't look good on us," she said.

 

The Daily Herald