Minister Donner puts Statia under preliminary financial supervision


SATURDAY, 12 NOVEMBER 2011
~ Budget amendment partially rejected ~
ST. EUSTATIUS--Dutch Minister of Home Affairs and Kingdom Relations Piet Hein Donner has put St. Eustatius under preliminary financial supervision where it concerns the 2011 and 2012 budgets.
The minister sent a letter to the Executive and Island Councils and the Committee for Financial Supervision CFT on Friday, in which he informed them of this step.
Minister Donner explained that he had decided to put St. Eustatius under preliminary supervision based on the advice of the CFT where it concerns the island's deficit budget.
"Although the amendments of the budget partially mended the deficits, these are not fully covered and there is definitely no balanced budget. I therefore partially reject the budget amendments," Donner wrote.
He also rejected the use of US $1.4 million in reserves, because these are in fact no reserves, but monies placed on deposit that were to be used to finance the deficit.
Donner stated the budget amendments also had been turned down where it concerned payments for medical cost and the governor's residence.
He wrote that based on the image painted by the CFT letter and the connected advice he had "great concerns" about the financial situation of the "public entity" St. Eustatius. Therefore, he had implemented preliminary financial supervision for the 2011 and 2012 budgets, a decision based on Law FinBES, article 35, sub 5e.
"I am aware that during my last visit [Friday, November 3, ed.] you have asked me for expert help by civil servants where financial management and the handling of the budget is concerned," Minister Donner wrote. In this light he made the suggestion to "immediately" contact Kingdom Representative Wilbert Stolte.