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THE HAGUE--Committee for Financial Supervision CFT will be asked to keep a close eye on the full compliance with criteria set in the Kingdom Financial Supervision Law and the financial situation of government-owned companies, before it approves loans of Curaçao and St. Maarten.

Dutch Minister of Home Affairs and Kingdom Relations Ronald Plasterk promised during a general debate with the Permanent Committee for Kingdom Relations of the Second Chamber of the Dutch Parliament on Thursday that he would relay the request of Member of Parliament (MP) André Bosman of the governing liberal democratic VVD party to CFT.

Bosman is highly concerned about the recent approval of loans by CFT. He specifically mentioned the NAf. 30.7-million loan for the purchase of Emilio Wilson Estate in St. Maarten, which he called a “waste of money” because the interest that St. Maarten has to repay the Netherlands is higher than the St. Maarten Government gets in long-lease benefits.

According to Bosman, the budgets of Curaçao and St. Maarten present a risk, despite the fact that they are balanced on paper. In Curaçao, several government-owned companies are in bad financial shape. “I just mention Aqualectra with its enormous debt.”

Bosman was critical of the absence of a dividend policy. He said that such a policy is important to determine if and how much dividend a government-owned company has to pay, and what it’s based on. “Curaçao is not adhering to the Kingdom Supervision Law, and still it gets the green light of the CFT. I just don’t get it,” he said.

The Parliaments of Curaçao and St. Maarten weren’t critical enough where it came to the public finances, said Bosman. “I don’t hear critical questions posed by the Parliaments, I don’t see any action being taken,” he said. Bosman said that as a Dutch Parliamentarian he will always stay on top of this issue, because the Netherlands carries the ultimate responsibility in the Kingdom.

The Kingdom Financial Supervision Law prescribes that budgets have to include an assessment of the country’s financial situation, but without the information of government- owned companies, that review can never be complete, said Bosman.

“The Kingdom Law is not a multiple-choice question. Approval of a loan is only possible when all articles in that law have been complied with. Things are either black or white. This is not a grey area,” said Bosman. He referred to an earlier letter of Dutch Minister of Finance Jeroen Dijsselbloem, who confirmed that the financial situation of government- owned companies is very much linked to the financial situation of a country.

MP Roelof van Laar emphasized that there were also good things happening in the public finances of the islands. “I don’t know if we are reading the same CFT reports as Mr. Bosman, but we see a positive line. Finances are improving and so is the financial management,” he said.

Minister Plasterk saw things more positive. He said the budgets of Curaçao and St. Maarten are now balanced. He said this was very different in the past, and that it was obvious that the countries now see the importance of solid public finances. “They are aware that they can’t spend more than they have.”

According to Plasterk, CFT was free to use its own interpretation and decisions in applying the Kingdom Financial Supervision Law. “I want to leave CFT in the position to take its own decisions. CFT also has a role to motivate the countries,” he said.

Plasterk promised to relay Bosman’s concerns to CFT. “I will ask CFT to specifically look at the position and the risks of the government-owned companies and to share this information.” Plasterk had made a similar request to CFT in connection with the business plan of the new Curaçao hospital currently under construction.

Bosman said he was happy with the Kingdom Financial Supervision Law and CFT, and also with the progress that has been realised in the financial management of the countries. But, he added, “I do have concerns about the budget policy and the loans. I am happy with the Minister’s promise that he will ask CFT to provide additional information.”