WILLEMSTAD - The General Audit Chamber (ARC) of Curaçao is demanding answers from Minister of Finance, Javier Silvania, regarding the forgiveness of an outstanding tax debt of 18.3 million guilders by the national lottery. The ARC seeks clarification on why the Ministry of Finance failed to collect this accumulated debt from the lottery spanning from 2010 to 2018.
The ARC recently released a comprehensive report covering the annual accounts of the National Lottery for the period between 2010 and 2018. According to the report, this leniency in tax collection has cost the Curaçao government treasury over 18.3 million guilders, a situation that has raised several concerns. Considering these findings, the Audit Chamber has made recommendations that include summoning Minister Javier Silvania to provide explanations about the circumstances surrounding the National Lottery's debt relief.
One of the primary questions raised by the Audit Chamber pertains to the Ministry of Finance's inaction in collecting the long-standing debt of 18.3 million guilders. The Ministry was reportedly aware of these debts, as one of its members holds a position ex officio within the Supervisory and Advisory Board of the National Lottery. The ARC expects the Ministry to clarify its reasons for refraining from pursuing the tax debts and, if any actions were taken, to detail the steps that were implemented.
Furthermore, the Minister will be questioned regarding the legality of the National Lottery's independent decision to write off the outstanding debt from its annual accounts. The ARC's report highlighted that, between 2010 and 2017, the accountant consistently added a continuity paragraph to the annual accounts due to concerns regarding the ongoing tax debt. However, this note of uncertainty was conspicuously absent when the debt was forgiven in the 2018 annual accounts.
In addition to the National Lottery's debt issue, the report also revealed the existence of other outstanding debts to the government, notably the non-payment of turnover tax since 2010, amounting to an additional debt of 1.6 million guilders. The Audit Chamber is pressing Minister Silvania to present a comprehensive plan for the collection of this debt to prevent it from becoming time-barred.
Lastly, the Audit Chamber is interested in understanding how the Ministry of Finance intends to oversee and enforce structural improvements to the National Lottery's financial situation. The Minister will need to articulate the potential repercussions for the lottery if future budgets are not submitted to the Ministry, whether partially or belatedly.
The ARC's call for transparency and accountability seeks to address concerns and rectify past fiscal missteps, ultimately safeguarding the financial stability and credibility of the Curaçao government.
