THE HAGUE -- Dutch Minister of Home Affairs and Kingdom Relations Ronald Plasterk decided on Wednesday to place the St. Eustatius Government under administrative supervision.

 

In addition, the local government has been given an instruction to adhere to the advice of the Committee for Financial Supervision CFT on the budget and financial management.

 

Statia Commissioner of Finance Astrid McKenzie-Tatem announced on Wednesday evening that she had decided to return to the island on Friday instead of Tuesday as scheduled. She will not be attending anymore meetings. “I see no reason to continue to take part in the discussions, as the Netherlands has already made clear what their plans are for St. Eustatius. Statia needs me now and I am heading home,” she told The Daily Herald.

 

Plasterk informed Statia’s Executive Council by letter on Wednesday that he was imposing supervision as well as an instruction. The measures go into effect immediately. A copy of the letter has been sent to the First and Second Chambers of the Dutch Parliament.

 

According to Plasterk, the Dutch public entity St. Eustatius incurred “sizable deficits” in 2014 while the outlook for 2015 is also “worrisome.” He stated that “drastic measures” were needed to get the expenditures under control.

 

Indications are that the financial deficit over 2015 will be around US $900,000, while the 2014 annual account will, as it looks now, show a deficit of about $1 million. These deficits must be compensated.

 

Plasterk’s instruction, which is based on the Finance Law public entities Bonaire, St. Eustatius and Saba, entails that the St. Eustatius Government may not commit to any new obligations, to prevent further deterioration of the budget. Advice of the CFT has to be adhered to, while a reorganisation plan has to be drafted before June 18 as part of a new 2015 budget amendment.

 

“The developments in the financial area are the result of the island’s public administrative malfunctioning. The quality of the public administration is at stake,” stated Plasterk in a press release.

In the letter to the Executive Council, Plasterk stated that the current situation was of such a worrisome nature that “direct intervention” in the functioning of the public entity was merited.

 

“The signals are not only of an administrative nature, but also have a financial character. In essence it is about administrative malfunctioning of the public entity and the insufficient adhering to laws and regulations, with bad financial management and consequent financial risks,” he stated. The minister mentioned that “repeated appointments” were taking place for which there was no basis in the budget.

 

National Government Representative Gilbert Isabella will play a cardinal role in Statia’s supervision. He will be making use of his legal powers to execute administrative supervision on St. Eustatius, based on the general law that governs the public entities Bonaire, St. Eustatius and Saba, the so-called WolBES.

 

A plan of approach will be drafted under the guidance of the National Government Representative together with the St. Eustatius Government to get the governmental organisation “in order and back under control.” This plan has to be ready by September 1, 2015, while its execution needs to be completed before January 1, 2018.    

 

The National Government has a “crucial role” to safeguard the quality of government. “Good governance and financial stability, in the interest of the people, are the objective of the instruction and the input of the National Government Representative,” Plasterk stated.

 

The daily Herald