Publication of research report by General Court of Auditors "At a distance, yet close by"- An in-depth examination of the Country's remote institutions

The findings of the study provide both Parliament and citizens with an understanding of the Country's remote institutions in terms of government corporations, public legal entities, and government foundations. Aspects presented in the report include the number and type of remote institutions, what the tasks they perform are, how the establishment and responsibilities are arranged, what (financial) risks there may be for the Country, and recommendations for improvement. The in-depth part of this study focused on the institutions: Arubus N.V., Post Aruba N.V., Refineria di Aruba N.V., WEB Aruba N.V., Serlimar, and Fundacion Lotto pa deporte.

With this investigation, the Court of Audit aims to support the control function of the Parliament which, in turn, can especially push for corrective actions. In doing so, it is also important to draw lessons for the future. The study makes one fact clear: Current practices cannot be continued in the same way. Both the Country and the remote institutions themselves must recognize the need to address and manage issues differently. This is important because the Country must work with the remote institutions to safeguard the public interest. These institutions serve the public interest by providing reliable and affordable services and (utilities). Large financial interests are also involved with these remote institutions.

The investigation reveals that the Land continues to structurally allocate funds without transparency and accountability from the remote institutions. In effect, the Land, like the institutions, is "putting out fires" here without structurally addressing underlying problems. Decisiveness is needed from all parties: the institution itself, the government, and the Parliament. Here it is important that the Parliament remains alert to steps taken, demands periodic accountability, and no longer tolerates inaction.

The Court of Audit concludes that while steps are being taken to improve existing bottlenecks related to remote institutions, they are too slow and not sufficient. Especially given the extent of the existing shortcomings, the size and urgency of the financial deficits, the "not in control" of several institutions, and the deficiencies in both information provision and accountability. The (continued) existence of shortcomings and the lack of decisiveness to make tough (and usually unpopular) decisions is a pain point that is visible over a series of Cabinets. 

The Court of Audit emphasizes in its report that the "not being in control" of these institutions directly affects the functioning of the Country and poses major financial risks to public finances. For various reasons, the institutions fail to function (financially) independently. This is something that the Land did have in mind when it was placed at a distance. This is due to both the institution itself and the Land. The current situation where several remote institutions have serious deficiencies in their functioning translates into unmanageable public finances, inefficient, ineffective, and sometimes even unlawful spending of public funds. This is because open-ended arrangements have been created over the years to support institutions that are not functioning properly. Transparency, accountability, and proper functioning of public administration, coupled with the proper performance of institutions' duties and achievement of goals are essential.

General Court recommendations

The Court of Audit makes the following recommendations: 

The Country should ensure that backlogs in the delivery of accountability information are eliminated and accountability by remote institutions is adhered to to promote transparency and accountability. The Country should also end practices of open-ended and temporary solutions without a legal basis. Also important is the alignment of accountability provisions in the various country regulations. It is additionally important to regulate the annual accountability to the Parliament by all ministers on the policies pursued and results achieved. The provisions on information and accountability to the Parliament should be aligned for all remote institutions.

The Country should further consider whether the chosen models and method of funding are the most appropriate to achieve public objectives. In addition, making an integrated vision for waste, transportation, and energy, among others, is important. Determine what is in the public interest and what must be carried out publicly or what can be carried out privately. Put the interests of the citizen first: the citizen has a right to affordable and reliable services. Do not delay making hard decisions any longer.

Finally, it is also important for the Country to ensure unambiguous definitions for government corporations and government foundations and to explicitly justify the need and method of funding them when establishing remote institutions. Standard models for statutes can also be used that regulate supervision and accountability in particular.

The Minister of General Affairs/ Prime Minister and the Minister of Economic Affairs, Communications, and Sustainable Development responded to the Court of Audit's report. The other ministers did not respond, which is unfortunate given the seriousness of the current situation. Although the Minister of Education and Sports did contact the Court of Audit, a written administrative response was not forthcoming.

In her response, the Minister of General Affairs asks the Court of Audit to come up with targeted proposals for the government to address the issues she has raised. In its afterword, the Court of Audit indicates that the government should draw up a coherent integral improvement plan that includes concrete and timetabled improvement actions. Sufficient material from various reports and opinions is now available to shape the plan. The Court of Audit hereby emphasizes that the responsibility for such a process lies with the government. It is important that no more non-commitment is accepted, but that actions are set in motion. It is also important that the Parliament remain alert to the steps taken, demand periodic accountability, and no longer allow the failure to take corrective action.