on international norms known as the PEFA-framework, Cft labeled the scope and nature of the external control of the government’s annual accounts as ‘not adequate’.927 Not surprisingly, experience shows that the reports of ARC are made available to Parliament years after the reporting year ended. Parliament, in turn, only seldom approves the accounts, necessary to discharge ministers. According to ARC, the last account approved by Parliament was the 2001 account of the island territory. ARC labels this ‘bad governance’928; the PEFA-report concludes that discussion in Parliament, because of the late delivery, by definition is ‘ineffective’.929 In a similar vein, budget proposals are seldom approved in time, as a result of which an important democratic principle, that is, government’s formal mandate to public spending, is violated.930 As of 10 October 2010, the new regulations on government accounts contain some provisions which aim to ensure the timely drafting of the accounts, and internal and external controls.931 Thus, SOAB is now to file its audit report six weeks after having received the annual account, and ARC is to report six weeks after having received SOAB’s report. In practice, however, the deadlines incorporated in the law have not been met. In February 2013, the annual accounts over (the last part of) 2010 and 2011 had not yet been submitted to Parliament, and were being audited by SOAB.932 In a recent letter to Parliament, ARC attributes this delay to, among other things, departmental failure to deliver requested information in time, the initial refusal of a formal minister of justice to audit the expenses of his department, and a significant delay in access to data on public revenues. 933 Importantly, both ARC, SOAB and Cft are experiencing formal or practical difficulties in effectively auditing or supervising the many public companies and public foundations, or, more generally, ‘public entities’, in depth. Both ARC and SOAB have a mandate to audit the finances of the public entities. The former in so far as the country’s financial interest – either directly or indirectly – is involved, the latter in so far as government has a financial interest or provides financial support, credit or guarantees.934 Cft has a mandate to request information on the public sector from government, and may provide the government with recommendations on the financial state of affairs of public entities.935 However, in practice ARC, SOAB and Cft have not been able to obtain the necessary information from public entities to adequately perform their tasks. Thus, for example, in 2007 ARNA already signalled that some public companies found it ‘difficult’ to provide information.936 In 2012 Cft reports that regardless of multiple reminders and other efforts to obtain the information, it took several months to receive only part of the annual accounts requested.937 More generally, information pertaining to public entities is difficult to come by,938 in part because, as mentioned in Chapter VII.4 Public Sector, it is not sufficiently clear whether or not all public companies and public 927
Cft, October 2011: 30; Cft, Report of findings. PEFA-assessment financial management Curaçao. (Rapport van bevindingen. PEFA inventarisatie financieel beheer). (Curaçao, Cft: February 2013), p.33. PEFA-framework refers to the Performance measurement framework of the working group Public Expenditure and Financial Accountability, see www.pefa.org. 928 ARC, October 2012b: 20. 929 Cft, October 2011: 10 and 32. Cft, February 2013: 14. 930 See, for example, Cft, 24 December 2012, Unsolicited advice Draft budget 2013 Curaçao (Ongevraagd advies ontwerpbegroting 2013 Curaçao). 931 Country ordinance Government accounts 2010, Article 50. 932 Cft, February 2013: 35-36. 933 ARC, Notification to Parliament, Update audits annual accounts (Mededeling aan de Staten, Stand van zaken jaarrekeningcontroles), 006/13/CUR (Curaçao: ARC). 934 Country ordinance Court of Audit Articles 1, 19 and 41; also see Article 35 and the explanatory memorandum; Charter SOAB, Article 3f; Island ordinance Cooperation with SOAB, Article3.1f and Article 3.2. 935 Decree of 2 November 2012, Section 2.3.7. Also refer to Article 8 of the Kingdom Act. 936 ARNA, July 2007: 8. 937 Cft, six month report Cft Curaçao and Sint Maarten, April 2011-December 2011 (Curaçao: Cft, February 2012), p.14-15. 938 See for example Cft, six month report Cft Curaçao and Sint Maarten, January 2012-July 2012 (Halfjaarsrapportage Cft Curaçao en Sint Maarten, januari 2012-juli 2012) (Curaçao: Cft, August 2012); Cft, Six month report Curaçao and Sint Maarten, July 2012-December 2012 (Halfjaarsrapportage Cft Curaçao en Sint Maarten, juli 2012-december 2012) (Curaçao: Cft, January 2013). Alao: Council of State, RA/14-12-DIV, 31 January 2013. Cf. Civil Code, Book 2, Part 3 and 4. 154
NATIONAL INTEGRITY SYSTEM ASSESSMENT CURAÇAO