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Cft: “Cft welcomes improvement in processing of financial risks CMC”.

cft12092024Willemstad:--- Curacao follows the recommendation given by the Board of Financial Supervision of Curacao and Sint Maarten (Cft) and reserves extra means in the draft budget 2025 to compensate for the loss-making exploitation of the Curacao Medical Center (CMC). For some time now, the Cft has been urging the country to correctly incorporate the financial risks of the precarious financial situation of the hospital into the country’s budget, and it feels the step that the Curacao government is now taking is a positive one.

In the draft budget, Curacao further elaborates the solution strategy for the financial issues of the CMC that was presented earlier. Although at present not all components of the solution have been explained, this is an important step towards sustainable exploitation of the hospital.

At the same time, the necessity to reform the healthcare landscape remains great. Curacao spends over 13 percent of its gross domestic product on healthcare, twice as much as the average healthcare expenses in the Caribbean. These high expenses contribute to the high tax and premium pressure in Curacao.

Financial management
On September 10th and 11th, 2024, the CFT visited Curacao. The main focus of this visit was financial management. In its deliberation with Curacao's Council of Ministers, the CFT expressed its concerns about the improvement of financial management, which is not at the projected level. Although good steps are being taken by Curacao, the goal of obtaining an unqualified audit opinion for the annual accounts of 2026 is at risk. The CFT urged the Curacao government to make the utmost effort to permanently improve financial management.

Adequate financial management is important when it comes to ensuring that public resources are effectively and correctly used, without wasting or misusing them. Furthermore, transparency and annual justification of the (financial) policy pursued are essential to a reliable government.

Since 2019, Curacao has been working on the improvement of financial management with the aid of the Roadmap toward an unqualified audit opinion for the annual accounts of 2026. The CFT does see improvement, but there is a risk of delay. With a correct prioritization of measures, efficient deployment of people and resources, and a continuous political commitment of Curacao’s Council of Ministers, Curacao will be able to achieve results.

Investments
From 2025 onwards, Curacao budgets a considerable increase in new investments, partly financed by means of loans taken out with the Netherlands. For some time now, the CFT has been drawing attention to the relatively low investment level, and it considers this to be a welcome development. In that context, the Cft points out the importance of economically profitable investments that strengthen the country’s economy. The Cft still has to evaluate the intention to take out new loans. It is therefore of important that Curacao submit the data regarding the public sector as soon as possible.

 


Tyson Beauperthuy wins his weight class at the University World Title wrestling in Brazil .

tysonbeauperthuy11092024St. Maarten descendant (great-grandson of the deceased Charles Daniel Beauperthuy) captured the 2024 FISU RIO World University Championships in beach wrestling in Brazil on Sunday, September 8, 2024. Tyson represented the U.S. as he currently attends Doane University in Crete Nebraska . The event comes around every 2 years for University Athletes. Tyson remains thankful and dedicated to his wrestling competition. Family members back home on the Caribbean Island of St. Maarten are very proud of his achievements and wish him continued success.

HNLMS Holland intercepts cocaine and marijuana in the first week of patrol

drugbust11092024The station ship HNLMS Holland started on Monday, September 2, with her patrols in the Caribbean Sea. Four days later, on Friday, September 6, in the morning, it was a direct hit. They received notification that morning that the patrol plane Dash 8 from the Coastguard Caribbean Region localized a suspicious go-fast in the neighborhood of the ABC islands. HNLMS Holland immediately took action upon this and launched the rapid interception boats, the FRISCs, with onboard combined teams consisting of the ship’s crew, the US Coast Guard, and the Fleet Marine Squadron. Also, the ship’s helicopter, the NH90, helped from the air during this counter-drug operation. The suspects on the drugs boat, several times, ignored the order to stop. The go-fast only stopped after targeted shots at the boat’s engines.

Cocaine and Marijuana
On board the smuggling boat were 9 passengers; a total of 52 packages were confiscated. These contained 210 kilograms of cocaine and 2110 kilograms of marijuana. The suspects and the drugs were handed over to the US Coast Guard. One suspect was wounded and, therefore, had to be brought to Curaçao by the NH90 helicopter to receive medical care.

Station ship
The station ship HNLMS Holland amongst other things is deployed mostly for counter drugs operations. In order to do this, the crewmembers alternately work together with the US Coast Guard and Coastguard Caribbean Region.

Addendum to ENNIA Outline Agreement Will Save St. Maarten 37 million guilders, Finance Minister Gumbs Tells Parliament.

marinkagumbs02062024PHILIPSBURG:--- The Addendum to the ENNIA Outline Agreement, which Minister of Finance Marinka Gumbs presented to Parliament on September 6, will save St. Maarten a cumulative total of about 37 million guilders.
In addition, Min. Gumbs successfully secured priority for St. Maarten in the potential sale of Mullet Bay. The Minister had returned to Parliament to answer questions posed by members of the legislative body at the meeting of June 27, 2024.
Among the highlights of the Addendum are that St. Maarten will not be responsible for covering costs for the Bonaire, St. Eustatius, Saba (BES) and Suriname policyholders, which will save government some 5 million guilders.
Similarly, St. Maarten will not bear the operational expenses of the resolution fund, as contemplated in the signed Outline Agreement, thus resulting in savings of 15 million guilders.
Furthermore, St. Maarten has requested the separation of its peak facility from that of Curaçao to prevent any cost overlap. The reduction in St. Maarten’s usage of the peak facility will save approximately 3 million guilders in interest expenses, Minister Gumbs explained.
According to the Minister, “A separate administration and yearly audit report for St. Maarten will be provided by April 1, detailing St. Maarten’s portion in the resolution fund.”
All these reductions will contribute to a positive cash balance of 14 million guilders for St. Maarten for a total savings of 37 million guilders.
“Although I would have preferred an alternative solution, after a detailed review of the short-term refinancing agreement signed by the previous government, it became clear that any alternative would impose a heavy financial burden on St. Maarten,” the Minister stated.
“This is because the signed Outline Agreement stipulates that if no solution is found for Ennia, an automatic increase in interest rates will take effect in October 2024, significantly impacting both Curaçao and St. Maarten, and therefore effectively binding St. Maarten to the Ennia deal for more than 30 years,” Minister Gumbs further explained.
The Minister reiterated her firm opposition to the Netherlands linking the interest rate on national COVID loans to a solution for the private company Ennia.
Minister Gumbs highlighted the fact that, while the Netherlands received grants from the EU to address the COVID-19 pandemic, it has charged interest on the loans provided to the islands, with the potential for even higher interest rates, resulting in profits for the Netherlands on pandemic loans.
This, she warned, would create a significant financial burden for the islands and reduce their ability to undertake necessary development, especially given the vulnerabilities of small island developing states like St. Maarten, which is in a hurricane belt and faces ongoing risk due to climate change.
Minister Gumbs stressed that the BES and Suriname policyholders are not associated with the St. Maarten Ennia office. For her, St. Maarten policyholders are defined as those whose policies are tied to the St. Maarten Ennia office.
The Minister further emphasized that the continuation of Ennia as an ongoing private business primarily benefits Curaçao, as the taxes and social premiums for the Ennia group are paid to the Curaçao government, and most of the employment is based there.
“Therefore, St. Maarten should not be expected to cover operational expenses when it does not benefit equally from all the benefits of these continued operations,” she said.
The Minister added that, “the taxes paid to Curaçao will not be shared with St. Maarten, putting the two on unequal footing. As a result, these changes will not impact Curaçao as significantly as they would St. Maarten.”
“St. Maarten is willing to pay for its own policyholders but not for the operational costs of the Ennia group of companies,” Minister Gumbs stressed. The Minister is expected to return to Parliament soon to address further clarifications requested by members.

 

SER elects Harlec Doran as Chairman, Judensy Coffie elected as Vice-Chairman.

serboard10092024HARBOR VIEW:---  After a 16-month hiatus, the Social Economic Council (SER) was reinstated on Monday, August 5th, 2024. On Thursday, September 5th, 2024, Mr. Harlec Doran, representing the independent members on the Board, was elected as Chairman of the SER by his fellow board members. The SER is an independent advisory organization of Sint Maarten. The Board consists of three representatives from employers’ organizations, three representatives from employees’ organizations, and three independent experts. Each member has a substitute.

Harlec Doran takes over the position from former Chairman ir. Damian Richardson bid farewell to the SER on April 30th, 2023, when the three-year tenure of the former SER Board came to an end. A new nine-member Board was installed by national decree and was published in the National Gazette of August 30th, 2024.

Born on the island of Sint Maarten, Harlec Doran holds a degree in human resources management. Returning for a second term, Mr. Doran previously served on several boards, including the Vidanova Pension Fund. As chairman, his first order of business is to meet with all stakeholders of the SER and strengthen valued relationships and collaboration. Mr. Doran is currently the Human Resource manager at the Sint Maarten Medical Center (SMMC).
On the same day, Mr. Judensy Coffie was elected as Vice-Chairman of the SER by his fellow board members. Mr. Coffie holds a degree in business economics. Returning for a second term, Mr. Coffie now serves as a member representing the independent experts on the Board. Next to his membership of the SER, Mr. Coffie is an active member in our community, and is part of the Destined for Greatness Foundation. The non-profit organization focuses on youth development, community engagement, and skill development in the areas of youth sports. The term of the Chair and Vice-Chair will come to a conclusion on April 30, 2026, at which time the tenure of the entire SER Board comes to an end.

 


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