Cft: Financial management of Silvania subpar, surpluses evaporate due to undisclosed financial obligations

June 13, 2023  –WILLEMSTAD – In Curaçao’s first financial execution report of 2023, a preliminary surplus of 104 million guilders was reported in the ordinary service. This is in line with the budget, according to the Financial Supervision College (Cft). However, that surplus was 142 million guilders at the end of 2022. 

According to the Cft, the decline continues this year. Curaçao expects to realize approximately 89 million guilders in outstanding liabilities, resulting in a final surplus of around 25 million for 2022. 

The Cft believes that financial management in this area is subpar and urgently advises taking measures to improve cost control. The supervisory body proposes establishing prior supervision of incurring financial obligations, combined with an appropriate sanction policy. 

New hospital 

Attention has been drawn again to the precarious financial situation of the Curaçao Medical Center (CMC). The CMC has not made any repayments on a loan since June 2020, prompting the Cft to consider a provision in the budget necessary. However, the budget still does not contain a provision, despite earlier urging from the College. 

The reason given by the Minister of Finance is that the main risks in the CMC dossier are posed by the mismatch between the allocated healthcare budget and the hospital’s operational costs, as well as the medium-term investment needs of the CMC. 

Silvania argues that based on the agreed-upon Administrative Main Lines Agreement for CMC entity restructuring on October 19, 2022, a comprehensive solution will be presented for the precarious financial situation of the CMC during this year. 

The College finds that there is little urgency to resolve this issue. The minister’s response indicates that the comprehensive solution is primarily focused on the losses already incurred and the formalization of the debt position. 

“It is unclear whether the structural mismatch between the healthcare budget and the operational costs will also be addressed in this comprehensive solution. The Cft emphasizes the importance of reaching a structural solution for the precarious financial situation of the CMC.” 

Leave a Reply

Your email address will not be published. Required fields are marked *