THE HAGUE – Aruba is taking the lead among the Caribbean countries of the Kingdom in developing a clearer policy for managing government-owned companies and other public entities, according to the Board of Financial Supervision Aruba (CAft).
In its report covering the first half of 2026, the financial supervisor said it had devoted particular attention to government participations and noted that Aruba had made significant progress in this area.
For the first time, Aruba included an overview of its government participations in its first budget implementation report for 2026, together with information on the status of their annual financial statements.
CAft described this as an important first step but said Aruba must now provide greater transparency regarding the financial risks associated with these entities and the possible consequences for government finances.
Government-owned companies and foundations play an important role throughout the Caribbean part of the Kingdom, often providing essential public services such as utilities while operating at some distance from the government itself.
According to the financial supervision boards, placing public activities in separate entities can improve efficiency, but governments remain responsible for maintaining effective oversight.
This includes monitoring corporate governance, the quality of services provided and dividend policies.
The financial supervisors warned that they have encountered several examples in recent years of inadequate supervision of government entities and unnecessarily expensive financing arrangements.
The situation differs considerably among the Caribbean countries and islands.
In Curaçao, recommendations from the Board of Financial Supervision Curaçao and Sint Maarten (Cft) have contributed to a substantial increase in dividend revenues received by the government from state-owned companies.
Sint Maarten, meanwhile, faces considerably greater concerns. According to the financial supervisors, weaknesses in the country’s policy governing state participations have created financial risks serious enough that a formal instruction could become necessary.
Concerns also remain about the functioning of government entities on Bonaire.
The financial supervision boards are therefore calling for governments to quickly develop and formally establish policies governing their public entities.
According to the supervisors, stronger policies should also result in more independent appointments to management boards and supervisory boards, reducing the risk that important public companies are managed without sufficient professional and independent oversight.