For several days now there have been comments in the press in regards to the cash flow problems of the Collectivité of Saint-Martin. This situation is in fact not exceptional for any administration within the context that the last financial trimester is always synonymous with a restricted cash flow. The other French Collectivités, unlike Saint-Martin, benefit from a guarantee by the State of their tax revenues. As a result they benefit from an anticipatory payment by the State of those projected revenues.
I would like to emphasize, that from a general standpoint, the finances of the Collectivité of Saint-Martin are healthy and that the budget which was voted at the beginning of this year was balanced. As demanded by law, that budget was submitted to the control of the State services who issued no advice of reservation as it pertains to the budget.
Today, because of the lack of the "twelfth month provision" that is in vigour in the other Collectivités, we find ourselves victim of the delay between the issuance of the tax returns and the collection of those taxes.
As a result, the services of the State and the Collectivité are preparing, jointly, interim financial solutions in order to reinforce our accounts.
As usual, the Collectivité continues to insure the payment of its entire obligation vis–a-vis third parties and will not tolerate the spread of suspicion that it envisions any declaration of bankruptcy. The late payments that some may have experienced are not necessarily due to cash flow issues but are most likely due to administrative delays that are much of the time incomprehensible.
President of the Territorial Council
Frantz Gumbs