THE HAGUE--The Committee for Financial Supervision CFT has reminded the St. Maarten government that it still lacks many 2019 annual reports of government-owned companies and collective sector entities. Of some entities, annual reports of preceding years are missing.
Only two government-owned companies are completely up to date, such as Princess Juliana International Airport Holding Company (PJIAH) and St. Maarten Harbour Holding Company. However, of many others the annual reports have not been sent to CFT via the minister of Finance.
According to an overview, CFT is still awaiting the 2019 annual reports of St. Maarten Laboratory Services (SLS), Winair, Saba Bank Resources, Netherlands Antilles Development Bank and Dutch Caribbean Air Navigation Service Provider. Of the last four companies, the St. Maarten government is a shareholder and not the sole owner as is the case with the other companies.
Multiple annual reports are missing from: utilities company GEBE (2017 and 2019), St. Maarten Telecommunication Holding Company (2018 and 2019), St. Maarten Postal Services (2017 and 2019) and C-Post International (2017, 2018 and 2019).
Two government-owned companies have a longer list of non-submitted annual reports: St. Maarten Economic Development Corporation (EDC) and “Luchthaven Veiligheid Financiering Maatschappij” (Airport Safety Financing Company). Of the first, the annual reports since 2013 are lacking, and of the second, there have been no annual reports since 2010.
CFT also requested the annual reports of the so-called collective sector entities, the foundations and institutions that are part of the collective sector, which is the total government sector and the social insurance sector.
Of all the collective sector entities, only the 2019 annual report of Foundation Judicial Institutions Windward Islands (“Stichting Justitiële Inrichtingen Bovenwinden”) was submitted to CFT. Of this institution, CFT still needs to receive the 2018 annual report.
Mental Health Foundation (MHF) and Execution Body Social and Health Cost Insurance SZV both have submitted their 2018 annual reports at CFT, but 2019 is still lacking. The 2018 and 2019 annual reports of both St. Maarten Medical Center (SMMC) and the Government Buildings Foundation (“Stichting Overheids Gebouwen”) still need to go to CFT.
Of the Foundation Upkeep Sports Facilities, St. Maarten Development Fund (SMDF), Voluntary Corps St. Maarten VKS and Bureau Telecommunication and Post (BTP) the annual reports of three years have not been received by CFT, and CFT awaits four yearly reports from Small Business Development Foundation (SBDF) as well as all those of Foundation Sports Development and St. Maarten Student Support Services (S4) since 2013.
CFT Chairman Raymond Gradus pointed out in his letter to Finance Minister Ardwell Irion, dated June 30 and released by CFT this week, that the annual reports were requested based on the Kingdom Law on Financial Supervision RFT. The St. Maarten Corporate Governance Code also requires that the annual reports of government-owned companies must be drafted within five months after the closing of the fiscal year.
As for the entities within the collective sector, RFT required St. Maarten to report on the preliminary 2019 annual figures of these entities no later than April 1. “CFT concludes that these reports are not in as yet and requests you to present these as soon as possible,” it was stated in the letter to Irion.
CFT repeated its earlier request to pay attention to proper monitoring of financial developments at the government entities and those within the collective sector so as to recognise risks to government finances at an early stage, and be able to mitigate them.
Chairman Gradus implored the minister to include information on financial developments at the government entities in the monthly reports, and to ensure the annual reports were submitted in a timely fashion.
