THE HAGUE – PVV Member of Parliament Elmar Vlottes delivered pointed criticism of financial management, governance, and oversight in the Caribbean parts of the Kingdom during the parliamentary debate on the Kingdom Relations budget and the BES Fund.
Vlottes began his remarks by addressing the BES islands—Bonaire, St. Eustatius, and Saba—acknowledging that their financial position has improved. He noted that for the first time in years, all three islands have received approved audit opinions and now hold a degree of equity. However, he cautioned that the improved financial position of Saba and St. Eustatius is largely due to increased transfers from the Dutch central government, arguing that this raises questions about the islands’ ability to generate sufficient revenue independently.
Questions Over Bonaire’s Rising Revenues
Bonaire, according to Vlottes, stands out due to a significant rise in locally generated revenue following the introduction of a tourist tax. He pointed out that Bonaire’s revenues nearly doubled within three years, increasing from approximately USD 19 million in 2021 to nearly USD 40 million in 2024.
Vlottes recalled that the Bonaire Executive Council previously stated that the tourist tax revenues would be used for purposes such as road maintenance. However, he questioned how these revenues relate to additional millions earmarked for a so-called traffic artery on the island, funded through incidental resources. He asked the State Secretary to clarify how the increased revenues will be invested and whether there is a coherent investment strategy in place.
Despite the positive figures, Vlottes warned that Bonaire’s financial situation is not without concerns. He referred to reports that the State Secretary gave the Executive Council two weeks at the end of November to submit a realistic budget. With a deadline of mid-December to provide additional information to the Financial Supervision Board, Vlottes asked whether this information has been submitted and what consequences would follow if it has not.
Severe Allegations in Curaçao’s Tax Administration
Turning to Aruba, Curaçao, and Sint Maarten, Vlottes painted a far more critical picture. He argued that financial reporting in the so-called CAS countries remains opaque and incomplete. In the case of Curaçao, he referenced investigative reporting suggesting that tax collection may be severely compromised.
According to Vlottes, reports have pointed to serious irregularities within Curaçao’s tax administration, including alleged personal interference in tax collection. He claimed that senior officials and politicians may have received favorable arrangements, with advance payments made and tax arrears concealed through informal communication channels such as messaging apps.
Vlottes said the scale of the alleged losses is unclear, with estimates running into tens of millions. While acknowledging that the Public Prosecutor’s Office is still investigating, he expressed concern that senior officials appear to face few immediate consequences. He questioned whether administrative consultations alone are sufficient in a situation involving alleged large-scale fraud.
Concerns Over Increased Borrowing
The PVV MP also raised alarms over Curaçao’s draft 2026 budget, which reportedly includes plans to invest an additional 186 million Caribbean guilders, financed through borrowing from the Netherlands. Vlottes questioned whether this borrowing is intended to compensate for lost tax revenues rather than fund genuine investment, and asked the State Secretary to clarify the government’s assessment.
While noting that Curaçao at least has a formal budget document, Vlottes contrasted this with Aruba, which he said still relies heavily on spreadsheets, and Sint Maarten, where the entire financial system reportedly requires restructuring. He warned that progress under the reform-oriented landspakketten is lagging behind expectations, with the current end date of April 2027 rapidly approaching.
Vlottes asked whether the government is considering interim benchmarks or consequences ahead of any possible extension of the reform programs.
Tourism Risks Amid Regional Tensions
In closing, Vlottes returned to the geopolitical situation involving the United States and Venezuela and its impact on the Caribbean. He expressed concern about reports of cancellations and early departures by tourists due to rising regional tensions, warning that the tourism sector—vital to the Caribbean economies—could face serious consequences.
He criticized the lack of response to earlier questions on the issue and urged the State Secretary to provide clarity on how the government assesses the risks to tourism and what measures are being considered to mitigate potential economic fallout.
The State Secretary is expected to respond to the concerns during the continuation of the parliamentary debate.