Independence (practice) Score: 50 TO WHAT EXTENT IS THE BUSINESS SECTOR FREE FROM UNWARRANTED EXTERNAL INTERFERENCE IN ITS WORK IN PRACTICE?
The state and/or other external actors do not regularly interfere with the operations of the business sector, but bureaucratic and lengthy procedures can hamper business operations. The procedures to protect business owners are also lengthy, cumbersome and can be costly. According to experts interviewed it is uncommon for government officials to solicit unofficial payments (for example bribes) in their dealings with the business sector. On the other hand, the number of audits and investigations by the Court of Audit Curaçao (Algemene Rekenkamer Curaçao), the internal auditor of the government (Stichting Overheids Accountants Bureau – SOAB) and the special police force (Landsrecherche Curaçao) give an impression of the extent of the corruption problem between the public and the private sector. Both ARC1154 and SOAB looked into the legality and the efficiency of the provisions of resident permits and working permits and indicated irregularities in the issuing of licences. However, the special police registered just one bribery case in 2012.1155 How widespread corruption is between the public and the private sector is not known. Experts presume there have been a number of cases of petty bribery. Interviewees consider that lengthy procedures and the lack of transparency on the part of the administrative authorities do create opportunities for corruption. For instance, a business expert stressed the importance of smooth handling and clearance of goods at Customs. In the past, a lengthy and cumbersome procedure could sometimes be shortened by paying bribes. Complaints about the length of tax audits of the Curaçao tax audit institution (Bureau Belasting Acountants dienst – BAB) are not uncommon. According to interviewees, tax audits sometimes take a year which can seriously disturb business operations. Moreover, it can take a long time before business owners are notified about the results of the audit. Protection against unwarranted decisions of a governmental organisation is to some extent afforded through LAR-procedures,1156 but in practice this is time-consuming and not results- and clientoriented. One expert stated, ‘while in theory a LAR-procedure is easy to do, in practice it is a lengthy and costly process which often defeats the purpose of the matter’. A civil procedure can sometimes take a year and, if it includes an appeal procedure, sometimes a few years. On the positive side, a respondent stated, ‘some help has come through the office of the Ombudsman’. In case of unwarranted behaviour of the public administration or a civil servant, it is also possible for the business sector to file a complaint at the Ombudsman’s office. Regarding actions and decisions of the tax authorities, a Court of Appeal for tax cases does not exist Curaçao. According to an interviewee, the possibility of a higher court is currently being explored. Another barrier to enforcing decisions of governmental organisations with civil procedures is the process costs for parties to start a procedure.
1154
See www.ar-Curaçao.org, ‘Curaçao – Reports’. Annual report Landsrecherche, 2012, p.9. 1156 In 2011 the administrative court had under its consideration 1,131 administrative cases, nine per cent 1156 fewer than in 2010. 1155
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NATIONAL INTEGRITY SYSTEM ASSESSMENT CURAÇAO