PHILIPSBURG:--- Former Minister of Finance Roland Tuitt shed light on several issues related to finance at a press conference in the Turning Point conference room on Thursday. The former Finance Minister said that the current Minister of Finance is busy trying to undo the things the former government did instead of working on matters that would benefit St. Maarten and its people.
Tuitt said he allowed the new government to enjoy their honeymoon period before speaking out on issues that are affecting the country. In responding to a question, Tuitt said he is speaking as the former Minister of Finance as well as a citizen of the country. Tuitt said that the government has been working without an internal control department. "An internal control department is the backbone of any large institution, but the government of St. Maarten never had this in place, during my stint in office I made contact with SOAB and we hired someone for a period of two years to assist St. Maarten in setting up this department. Someone from St. Maarten was also hired and sent to Curacao for training in order to set up a treasury department for government. St. Maarten does not have a treasury department and because this is essential someone was hired and sent to the Central Bank in Curacao to be trained. It is my hope that this person will be allowed to use the skills he acquired for the treasury department."
AUC Profit Tax Deal.
One of the issues Tuitt spoke about is the deal the government of St. Maarten made with the former owners of AUC on the amount of profit tax they paid to the government of St. Maarten. SMN News reported on Wednesday that the former owners of AUC sold the business to DeVry for $235 million dollars and they were supposed to pay government 34.5% in profit tax but they managed to broker a deal with the former government (DP/UP/Illidge) and paid only 10%.
Tuitt said he tried to resolve this issue up to the last day he spent in office because the businessman owes government up to Naf. 100 million by not paying the full 34.5% percent on the sale of AUC to DeVry. This deal was made after the businessman enjoyed a 10 year tax holiday. Tuitt explained that the former owner of AUC only paid 10% of what they were supposed to pay and the moment he took office he made contact with the businessman to have him settle his bills. Tuitt further explained that if government collects this money they would have enough monies to cover the budget deficit for a period of three years (2013 to 2015). The former Finance Minister said one businessman was allowed to get away with 25% of the country's budget.
Government paid Naf. 1.7 to Dutch Contractor as Mobilization Cost on the White Elephant.
The former Finance Minister said his predecessor paid a Dutch contractor (Betonbouw) Naf. 1.7 million for mobilization cost. "Mobilization cost is paid for one or two months to allow contractors to take their equipment's to the location but the government of St. Maarten paid this contractor mobilization cost for three years for the white elephant on Pond Island. That is the most expensive chicken coop because government paid Naf. 45,000.00 per month for mobilization cost." Tuitt said when he took office last year he had to pay that Dutch contractor Naf. 1.7 million guilders because his predecessor and the Prime Minister had already signed off on it. Tuitt said it's normal to pay mobilization cost for one or two months as the contractors relocate to the site but he never heard of anyone paying mobilization cost for almost three years. "When I took office I found this to be unfair so I tried to get the project started in order to stop the mobilization cost. I was successful in getting the work started and stopping the mobilization cost. Tuitt said the "Theonomics and Sarahnomics" created a hole of Naf. 1.7 million for the government of St. Maarten with the white elephant.
Further research on the issue of the government building showed that the son and son in law of the Prime Minister was busy trying to buy over the contract RGM has in order for them to complete the building and furnish it through a financing agency they are representing in the USA.
TAXAND Scandal cost Government USD 11 million.
Tuitt said that the company that had to develop a new tax system for the government of St. Maarten cost government some USD 11 million. Tuitt said when he took office some Naf. 4.2 million was already paid to the consultancy firm. He said the consultancy firm sent additional bills to the tune of Naf. 5 million but he did not pay them. He said that the UP/DP/Illidge government had no basis to pay the Naf. 4.2 million. Tuitt said the SOAB conducted an investigation and the report was submitted to Parliament so that they could deal with the matter.
Tuitt said that he submitted all the information he has to the Parliament of St. Maarten and he is hoping that Parliament will do its job. Tuitt said even though he is no longer a Minister, he stands ready to provide more information to the Parliament of St. Maarten.
Budget Woes --- CFT and Council of Advice is above Parliament.
Tuitt said last year the 2013 budget was approved by the Parliament of St. Maarten and there is no other entity that has the right to question the budget after it has been approved. "Today, the CFT and Council of Advice is above the people and the Parliament of St. Maarten."
As for the alcohol and tobacco tax that Tuitt mentioned in the 2013 budget, he said an advice was being worked upon and if the government did not fall that piece of legislation would have gone to Parliament prior to June 2013 and that would have enabled government to collect taxes on tobacco and alcohol for part of 2013. Tuitt urged the Minister of Finance to finalize the process so that this can be done in 2014 and St. Maarten could get some more monies. Tuitt said the only businesses that are not paying Turn over Tax (TOT) are the casinos. He said that is the only reason he saw it fit to increase their fees in order for them to fall in line with the other businesses that have to contribute to government coffers. "Based on what I read and saw in the news, this government is putting the taxes on alcohol and tobacco and the levies aside. If they want to put them aside for 2013 because the laws are not yet in place then they should work on these laws now and have them in place for 2014 so that all of this can be implemented."
In addressing the number plate issue, Tuitt said his intention was to have stickers made for 2014 while the persons that did not pay their road taxes this year would not have gotten away lightly. "Those delinquent payers when caught would have had to pay the road tax, a fine, towing fees, and storage cost. This would have cost them way more than the road tax which is less than Naf. 300.
