WILLEMSTAD – The General Audit Chamber Curaçao (ARC) has concluded that not only the Government Accountant Office (SOAB), but also the Tax Accountants Bureau (SBAB), acted outside their designated roles in assignments issued by the government.
In its findings on the 2023 national accounts, the Audit Chamber states that SBAB was improperly tasked with coordinating the renovation of the Tax Department building on Regentesselaan. According to the ARC, this assignment falls outside SBAB’s statutory mandate and violates the National Ordinance on Financial Management (Landsverordening financieel beheer).
SBAB’s statutory role is limited to conducting tax investigations at the request of government-owned companies, foundations, or the Public Prosecution Service, often in cases involving suspected tax fraud. The Audit Chamber notes that coordinating a major construction and renovation project does not align with these responsibilities.
No public tender
The ARC specifically points to a 5.2 million guilder increase under the item “Tangible Fixed Assets,” which it classifies as unlawful. According to the Audit Chamber, no public procurement procedure was carried out for the renovation of the Tax Department building, despite this being a legal requirement under the National Ordinance on Financial Management. Instead, the assignment was directly awarded to SBAB.
A ministerial exemption decree was issued by the Minister of Finance, Javier Silvania, allowing the government to deviate from the obligation to conduct a public tender. In that decree, the deviation was justified on the grounds of urgency, operational problems at the World Trade Center, risks of cartel formation, cost savings, efficiency, speed, transparency, and integrity. The exemption further stated that the deviation was made in the “national interest.”
ARC disputes ‘national interest’ argument
After obtaining legal advice, the Audit Chamber firmly rejected that justification. According to the ARC, none of the reasons cited by the minister qualify as “national interest” within the meaning of the law.
The ARC explains that national interest, as intended in the legislation, is limited to exceptional circumstances involving national defense, security and public order, or legal certainty. These are considered fundamental responsibilities of the Country, whose importance outweighs other, less fundamental interests.
Because the reasons cited by the minister do not fall within these narrowly defined categories, the Audit Chamber concludes that the exemption was improperly granted. As a result, the awarding of the renovation assignment to SBAB is deemed to be in violation of the National Ordinance on Financial Management.
The findings add to growing scrutiny of how government assignments are issued to semi-public entities and increase pressure on the government to clarify the boundaries between statutory mandates, procurement rules, and ministerial responsibility.