Permanent Supervision Of Finances Of The Former Antilles Islands
THE HAGUE - The former Netherlands Antilles must continue to be under financial supervision in the future. This is according to Age Bakker, who departs after six years as chairman of the temporary Committee for Financial Supervision (CFT).
According to the economist, the supervision increases the attractiveness of investing and reduces the risk that the Netherlands has to step in for financial mismanagement.
“The carrot and stick approach applies here,” says Bakker. “The carrot is that the islands can borrow cheap money abroad via the Netherlands.” For example, the island states of Curaçao, Sint Maarten, Aruba and the three overseas municipalities of Bonaire, Sint Eustatius and Saba, can take advantage of the good reputation of the Netherlands on the International capital markets. “The stick is that independent financial supervision also has control by giving directions.”
The Daily Herald
Bosman Seeks Clarity On Permanent Supervision
THE HAGUE - Member of the Second Chamber of the Dutch Parliament André Bosman of the liberal democratic VVD party wants to know if the Dutch Government agrees with the statement that financial supervision in the Dutch Caribbean should become permanent.
Bosman sent a series of questions to caretaker Minister of Home Affairs and Kingdom Relations Ronald Plasterk on Wednesday following a media statement of departing Committee for Financial Supervision CFT Chairman Age Bakker who said he was in favour of maintaining the current financial supervision in a more permanent format.
The Member of Parliament (MP) asked the Minister whether he agreed with the permanent instituting of financial supervision on the six Dutch Caribbean islands. When the current supervision was instituted in 2010, it was agreed that the supervision, in principle, would be of a temporary nature and that the measure aimed at securing sound Government finances would be regularly evaluated.
Bosman also wanted to know to what extent a permanent version of financial supervision in the Dutch Caribbean would limit the financial risk for the Netherlands and to what degree the Netherlands would have to take the rap for “financial mismanagement” of the Caribbean countries of the Kingdom.
“Do you agree with the statement of Mr. Bakker that permanent financial supervision for the islands would reduce the risk that the Netherlands would have to cover for financial mismanagement?” Bosman asked the Minister.
The MP inquired whether the Minister would incorporate the advice of the departing CFT Chairman in next year’s evaluation of the current agreement between the Netherlands and the Dutch Caribbean islands. He asked whether the Second Chamber would be involved in this evaluation and when the results of this evaluation would be sent to Parliament.
In a separate series of questions, Bosman sought clarity on the most recent advice of the Aruba Committee for Financial Supervision CAFT to implement a general commitment and vacancy stop for the Aruba Government.
Having analysed the first progress report of 2017 of the Country Aruba, CAFT concluded that the deficit in the collective sector in the first quarter amounted to 1.1 per cent of the Gross Domestic Product (GDP), which was higher than the 0.5 per cent GDP deficit standard for the full year.
The financial results over the first quarter were at such level that the CAFT advised to implement a vacancy stop and a commitment stop. At the beginning of this year more people have entered public service, which is not in line with Government’s intention to save five per cent on Government staff annually.
Bosman asked Minister Plasterk whether he agreed with the CAFT advice to implement a general commitment and vacancy stop, and whether he found it desirable that the Aruba Government didn’t agree with this advice.
“Why has the civil servants corps increased with 18 full-time employees? What should be the consequences of Aruba’s refusal to cooperate with the CAFT advices,” the MP wanted to know.
Tuesday’s arrest of two employees of Curaçao’s Admittance Organisation, formerly the Immigration Department, on corruption charges was reason for Bosman to inquire about that case. He asked Minister Plasterk for clarification on this specific case that involved the department head.
The MP wanted to know in what way the suspects committed fraud with applications for residency permits and the issuing of these permits. He asked about the consequences of this fraud on the issuing of Dutch passports to “persons who didn’t have a right” to acquiring a passport, and whether the Netherlands would be involved in the handling of this case.