WILLEMSTAD.- This week, the Financial Supervision College (CFT) sent its next reaction to the Government, regarding the way the Government is managing to resolve the country’s financial situation. In his reaction, CFT said among other things, that he found, based on the third “Report of Execution” (UR), that the realization of the three quarters of the year is running late on the budget. Based on the inflow of taxes that did not enter, CFT does not expect this trend to be reversible. Contrary to what it stipulated in the third UR, CFT expects that the budget approved in 2018, including what has been set aside to compensate the 2017 deficit, will not be neutral anymore. Subsequently CFT says it expects a delay in the entry of taxes and arrears in other dividend entries as well.
Based on this, the Minister was asked to work on a forecast from now until the end of the year. From this forecast that Curaçao gave, it turns out that the compensation to cover the deficit of 42.4 million guilders was 39.1 million. In just a few weeks the budget got worse with almost 80 million guilders. Notwithstanding all the measures that were taken to manage this, such as a stoppage on new expenses and prior supervision, it still seems that they have a sum of 16.4 million guilders in unregistered obligations.
This is not only that the financial registry system does not work, but also that there is a failure in budgetary discipline. CFT calls on the Government to take measures immediately and put internal supervision, administration of obligations and the management of this in order. He also asks the Minister to mention the total sum of unregistered obligations. CFT also said that on different occasions it has asked questions about the net payment system that it agreed with CPost and the effect of this on the budget. Previously CFT made sure that the risk was completely covered. Now it is a loss of 11.6 million guilders. This also illustrates that the Government does not have a good view of the potential risks in the budget and does not cover them adequately.
Based on the Government’s forecasts and at the time for when this was presented, it seems that a new deficit is inevitable, and in the year there will be no compensation for 2017. All this means that for two consecutive years, Curaçao will not comply with the rules of Article 15 of Rft. These differences generate great concerns to CTF on the issue of financial management. CFT notes that there is a fundamental problem with regard to the reliability of government figures. The reliability of the information is crucial so that CFT can exercise its task as supervisor. Clearly, the government is not in a position to point out losses.
