The chairman of the General Audit Chamber, Mr. Ronald Halman, presented the final report ‘Pensions Sint Maarten 2011’ to the chairman of Parliament, Mr. Rodolphe Samuel, on Tuesday 16th of April.
The major finding contained in the report is that 55% of civil servants were not registered at the pension fund – het Algemeen Pensioenfonds Sint Maarten (APS) – in 2011. Relevant governmental organisations such as the Ministry of General Affairs, the Ministry of Finance, as well as the Pension Fund (APS), recognize the findings of the General Audit Chamber, although none of these entities were able to provide sufficient information regarding the scope of the potential financial impact. The magnitude of the financial effect therefore remains unclear for Sint Maarten and, in the opinion of the General Audit Chamber, requires immediate action from Parliament.
In August 2012, the General Audit Chamber announced, in the final report ‘Lawfulness of Personnel Expenditure Sint Maarten 2011’, that they would instigate a follow up investigation regarding the registration of civil servants at the pension fund. Mr Halman stated, "in the first audit, the personnel files provided no proof of the registration at the pension fund for a significant number of civil servants. We were not sure of the exact reason for the lack of registration at the pension fund. That uncertainty led to the execution of a follow up investigation". The results of the follow up investigation demonstrate that 45% of civil servants were registered in 2011 at APS (55% were not registered).
Relevant governmental organisations, as well as APS, during the consultation phase of the investigation, acknowledged the finding of the General Audit Chamber. In fact, a provision of ANG 46 million was taken up in the financial statements 2010 of the Island Territory of Sint Maarten, for pensions. However, the General Audit Chamber did not receive any substantiation for this provision Mr. Halman stated. As a result, the General Audit Chamber was not able to determine if the provision is sufficient. Should the provision prove to be insufficient, there will be a direct financial impact on the budget(s) of the Country Sint Maarten. "We find this to be worrisome because the magnitude of the financial impact is still unknown", according to Halman.
The General Audit Chamber is able to state that the legal consequences for civil servants are likely to be minimal. Each civil servant has the right to pension. However, the General Audit Chamber did not investigate the possible practical consequences resulting from the absence of a registration of an employed civil servant. In terms of impact, the effects can vary by individual. "An employment decree from Country Sint Maarten provides a civil servant with the right to claim a pension. This is a comforting fact for current as well as future civil servants", according to Mr. Halman.
As part of the report, the General Audit Chamber issued a number of recommendations focused primarily on gaining insight into the magnitude of the financial risk. Halman cautioned that "the General Audit Chamber is an advisory body and supports Parliament in terms of its supervisory task". As such, Halman recommends that Parliament debate the findings, conclusions and recommendations contained in the report. Only Parliament can decide if an assignment, if any, is given to the Council of Ministers in regard to the issue of pensions.
The investigation and printing of the report was – in part – made possible through funding from USONA.