Kralendijk- In spite of a new visual presentation that seemed appraciated by residents, the College for Financial Supervision (Cft) is not positive about the draft 2022 budget.

According to Cft, the draft budget does not meet requirements. “The draft budget has been assessed on the basis of criteria included in the FinBES Act and in the BES Budget and Accountability Decree (BBV BES). For example, the budget should be in balance, it should be admissible from the point of view of lawful, efficient and verifiable financial management and the recognized financial liabilities and charges do not entail unacceptable risks. In addition, the income and expenses included in the budget should be in accordance with the best possible estimate of commitments already entered into and of expected external developments”, according to Cft.

Criticism

The Cft is of the opinion that Bonaire might be too positive when it comes to expected income from tourism. “Bonaire expects higher earnings from tourism compared to before the start of the Corona Pandemic. It is insufficiently substantiated what this is based on”, according to Cft.

Cft also points to the fact that additional income is expected from changes in Land policy and remission policy. “The land policy has not yet been established by the Island Council. The OB therefore does not comply with Article 14 of the BBV BES. The waiver policy has not yet been established”, according to Cft.

Financial Management

An ongoing area of concern is the overall Financial Management at the Public Entity. Cft has pointed out time and again that the overall Financial Management of the Government of Bonaire should be improved. Last year the Government hired a so called ‘change-team’ to the tune of 400.000 dollars, but so far it seems as if the envisioned results are not being achieved as of yet.

Shortfall

Last but not least, the budget currently projects a shortfall of about 2 million dollars. The Government proposes to cover this shortfall by drawing on the financial reserves of local Government, which currently shows a big surplus. This could be permitted, according to Cft, if the overall shortcomings of the current proposed budget are rectified.