WILLEMSTAD – The Curaçao Court of Audit is warning that assignments given by the government to Stichting Overheidsaccountantsbureau (SOAB) could create doubts about the government auditor’s independence when it is simultaneously expected to perform a supervisory and auditing role.
The warning is contained in answers submitted to Curaçao Parliament on October 7 as part of the continuing parliamentary review of the government’s 2023 annual accounts.
The Court of Audit and the government have disagreed over several assignments awarded to SOAB during 2023.
SOAB has pointed to amendments to its statutes that broadened the activities the organization is permitted to perform. The Court of Audit, however, says those amendments took effect only in August 2024 and therefore cannot be used to justify or assess assignments carried out in 2023.
Beyond the timing of the statutory changes, the Court of Audit raised a more fundamental concern about SOAB’s position within government financial oversight.
SOAB performs an auditing and supervisory function for the government, but has also received assignments involving policy development, implementation and government expenditure.
According to the Court of Audit, the government must prevent these additional assignments from creating questions about whether SOAB can remain objective and impartial when carrying out its auditing responsibilities.
The concern forms part of a broader disagreement over Curaçao’s 2023 financial management. The Court of Audit has maintained criticism concerning unauthorized budget overruns, the decision to stop collecting certain old tax assessments and the accounting treatment of government revenue.
Tensions surrounding the audit have also reached Parliament.
During parliamentary discussions, the possibility was raised that the government could file a complaint against the Court of Audit with the Accountantskamer, the Dutch disciplinary body for accountants.
The Court of Audit responded that every party has the right to submit a complaint. However, it stressed that the possibility of disciplinary proceedings must not interfere with its statutory responsibilities.
The institution said it will continue conducting its investigations independently and in accordance with established procedures.
The Court of Audit has also rejected suggestions that it simply disregarded the government’s explanations during its investigation.
Some conclusions were modified after the government supplied additional documentation. Among them were findings related to the acquisition of the Cunucu Hatun properties and government receivables involving Aqualectra.
However, on several of the most significant financial management issues, the additional information did not persuade the Court of Audit to change its position.
The continuing disagreement places Curaçao’s system of financial checks and balances at the center of the parliamentary debate. The Court of Audit is an independent institution tasked with examining whether public funds are collected and spent in accordance with applicable rules and whether government financial management is properly conducted.
It has now called on Curaçao Parliament to follow up on its recommendations and use its oversight role to require the government to address the shortcomings identified in the 2023 accounts.
The Court of Audit has also urged Parliament to address the backlog of government annual accounts that have not yet been formally adopted, arguing that timely approval is an important part of effective parliamentary control over public finances.