WILLEMSTAD--The Committee for Financial Supervision CFT has criticised the fact that the necessary structural measures for a sound budget situation in Curaçao have not been introduced yet and are further delayed.
CFT will consult with the Curaçao Government on the current situation in the coming week. Parties also will discuss the necessity of additional measures, according to a CFT press release issued after statements by outgoing Dutch Minister of the Interior and Kingdom Relations Liesbeth Spies (CDA) in the Dutch Parliament's Second Chamber, to the effect that the Kingdom Council of Ministers was preparing an instruction for the Curaçao Government in view of the budget problems on the island.
Spies' statements led Minister of Finance George "Jorge" Jamaloodin (MFK) to reply that he saw no reason for panic.
In its release CFT spoke of an alarming state of affairs regarding the budget problems of Curaçao to date. For example, on April 19 CFT gave a negative advice on the first budget amendment of the country Curaçao for 2012.
One reason was that the deficit on the budget of 2011 (NAf. 163.4 million) had not been covered in the budget of 2012, although the Kingdom Law on Financial Supervision prescribes such. CFT further indicated that at the time one still had assumed that 2011 would be closed with a deficit of NAf. 90 million, but since then it had become clear that the deficit was much higher.
Another reason for the negative advice was the fact that the measures for public health, pensions and the dividend policy were further delayed. Long-term financial obligations in the budget of 2012 such as the construction of the new hospital also were mentioned.
In conformity with the Accountability Ordinance, the first budget amendment should have been presented to Parliament on May 15, including the advice from CFT and the Advisory Council as well as government's reaction. "To this day, the budget amendment hasn't been presented to Parliament."
In a previous advice, CFT had insisted that structural measures be taken. As from August 2011 the committee indicated that if there were further delays, it would also mean a deficit for the budget of 2012 and CFT wouldn't hesitate to advise the Kingdom Council of Ministers by means of Article 17.1 of the Kingdom Law on Financial Supervision.
"We don't preclude the possibility that the Kingdom Council of Ministers is asked for an instruction," said the CFT.
However, in a press release of his own, Jamaloodin said there was no reason to give an instruction.
"In the last meeting of May 11 it was agreed with Minister Spies that CFT and the Ministry of Finance would send a reply to the Kingdom Council of Ministers regarding the progress of the budget. This will be discussed next week during a meeting with CFT. A meeting is also scheduled on June 15 with Minister Spies in Curaçao."
According to the MFK minister, government is working on reforms and steps in various policy fields. Measures related to basic health insurance, the AOV old-age pension fund, savings in the public health sector, increasing the retirement age and implementing the new tax plan are among the matters involved.
Jamaloodin emphasised that the budget-deficit problems of Curaçao could not be solved simply by restructuring the debt. One must also examine how the debts were incurred, he said.
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