Audit Chamber says road fund case remains open, govt yet to resolve concerns

GREAT BAY--The General Audit Chamber has confirmed that its formal objection procedure concerning the Road Fund remains unresolved, with outstanding concerns about government's compliance and progress toward correcting identified problems. The Chamber is scheduled to meet with the responsible minister on Friday, October 23, to assess the situation and determine whether further action is necessary.

The disclosure came during a Central Committee meeting of Parliament on Thursday, October 22, when representatives of the General Audit Chamber presented their 2025 Annual Report and responded to questions from Members of Parliament concerning public financial management, government accountability, the pension fund APS, privacy protection and the implementation of audit recommendations.

Responding to questions from MP Ardwell Irion, General Audit Chamber Secretary General Keith de Jong explained that the Chamber had not withdrawn its concerns regarding the Road Fund, despite previously agreeing to suspend the formal objection procedure after receiving a corrective plan from government.

"It's good to clarify that the objection procedure is still ongoing," De Jong told Parliament.

"We've not closed the matter or concluded that our concerns have been resolved," he added.

De Jong explained that the Chamber met with the responsible minister earlier this year and received a plan outlining how government intended to address the identified shortcomings. The Chamber considered the proposed approach sufficient to suspend the objection procedure temporarily and allow government an opportunity to implement corrective measures.

However, the Chamber remains concerned about the pace of implementation and whether the underlying compliance problems have been adequately addressed.

De Jong confirmed that a meeting with the minister is scheduled for Friday, October 23, after which the Chamber will assess the information received and determine what further steps may be required.

The confirmation comes amid renewed public discussion about the Road Fund's implementation and the financing of road infrastructure improvements. Earlier this week, the Minister of Finance clarified that the fund's proposed new operating structure could not be fully incorporated into the 2027 budget because the necessary legislative and regulatory framework had not yet been established.

Government has included Cg 9 million for road and infrastructure investments in the 2027 capital budget, including Cg 3.5 million expected to be financed through the Road Fund.

Government Financial Statements Still Overdue

Another concern raised during the presentation was the continued absence of government's financial statements for 2023 and 2024.

General Audit Chamber Chairman Alphons Gumbs told Parliament that the Chamber had not received either set of financial statements, leaving both years overdue. De Jong explained that the most recent government financial statements for which the Chamber had completed an audit were those for 2022.

The situation means the Chamber has been unable to complete its independent examination of government's financial performance for the subsequent years, an important part of ensuring transparency and accountability in the management of public funds.

De Jong emphasized that annual budgets alone do not provide a complete picture of how government actually spends public money. Financial statements are necessary to establish actual expenditures and assess the country's financial position.

The Chamber also outlined findings from several audits conducted during 2025, including investigations into building permit procedures, government's response to climate change, the protection of personal information, public experiences with the Tax Administration and the financial statements of the pension fund APS.

Concerns About APS Investments

The financial sustainability of the General Pension Fund APS also featured prominently during the meeting.

Responding to questions from MP Irion, De Jong identified long-term financial sustainability as a major concern, particularly the fund's exposure to fluctuations in international financial markets and the performance of local investments.

He referred to several local investment projects, including the proposed multilevel parking facility near the Government Administration Building, the planned boutique hotel at Mary's Fancy and the Oryx Hills development.

According to De Jong, the Chamber has repeatedly raised questions about the progress, financial projections and expected returns of certain local investments.

He acknowledged that APS had shown improvements in its financial position during 2024 and 2025, but cautioned that changes in actuarial assumptions can also influence reported funding ratios.

The Chamber identified stronger investment governance and risk management as important priorities for protecting pension participants.

Irion questioned whether APS should consider increasing its international investment portfolio, given the limited number of investment opportunities available locally. De Jong declined to recommend specific investments or sectors, explaining that such decisions belong to APS and its investment professionals.

Privacy Protection and Artificial Intelligence

The meeting also highlighted shortcomings in St. Maarten's protection of personal information, particularly as government and other institutions increasingly rely on digital systems and artificial intelligence.

The Audit Chamber reported that the legally required supervisory committee responsible for overseeing personal data protection has not been established.

De Jong said legislation alone cannot adequately protect citizens unless the appropriate supervisory institutions and procedures are in place.

The Chamber has also found that residents receive insufficient information about their privacy rights and that concrete progress toward addressing previously identified shortcomings remains limited.

Irion raised concerns about the increased use of artificial intelligence, surveillance cameras and digital technologies, questioning whether St. Maarten is adequately preparing its legislation and institutions for these developments.

De Jong acknowledged that the Audit Chamber currently lacks specialized expertise to conduct certain artificial intelligence and information technology audits. However, he disclosed that informal discussions have begun with the Netherlands Court of Audit regarding potential cooperation and assistance in developing this capacity.

The Chamber also intends to meet with the Minister of Justice to discuss the implementation of its recommendations concerning personal data protection.

MPs Question Whether Audit Recommendations Lead to Action

MP Sjamira Roseburg questioned the effectiveness of the Audit Chamber's work when its recommendations are not legally binding and government cannot be compelled by the Chamber to implement them.

She asked whether the institution's reports were producing meaningful changes or whether recommendations continued to be published without sufficient follow-up.

De Jong explained that while the Chamber is responsible for conducting independent investigations and presenting its findings, Parliament carries the responsibility of holding ministers accountable for their responses.

The Chamber has introduced a new system, described as a progress meter, to monitor the implementation of recommendations made in previous audits.

Under the system, government ministries and other audited institutions will be asked to indicate which recommendations they accept or reject, provide explanations and report on implementation.

The Chamber expects to provide Parliament with its first consolidated progress report before the end of 2026.

MP Franklin Meyers also questioned how recommendations are monitored and what specific corrective measures government has accepted following completed audits.

Meanwhile, MP Viren Jansen-Webster questioned the Chamber's own accountability and the methodology used to determine which individuals are interviewed during investigations.

De Jong explained that the Chamber's finances form part of the country's financial statements and are subject to examination by the government's auditing authorities. He also clarified that interviews represent only one method of gathering evidence, alongside financial records, contracts, correspondence and other documentation.

No Government Implementation Plan Yet for Minister Plenipotentiary Audit

Roseburg also questioned why the Chamber's recent investigation into the governance and financial management of the Minister Plenipotentiary's Cabinet covered the period 2021 to 2025 instead of examining the institution's operations dating back to 2011.

De Jong explained that the scope was determined partly by the Chamber's limited resources and the need to focus on more recent administrative arrangements. He emphasized that the institution's historical background, including the establishment of the foundation in 2011, had not been ignored.

The investigation was primarily concerned with governance, administrative procedures and the legal framework within which the Cabinet operates.

De Jong confirmed that government had not yet submitted a concrete implementation plan addressing the recommendations from the investigation, which was completed in September 2026.

Audit Chamber Conducting Five Additional Investigations

Chairman Alphons Gumbs also disclosed that the Chamber currently has five audits in progress, although their subjects cannot be publicly identified under the institution's audit protocols.

He said three reports had already been published in 2026, including investigations concerning air quality monitoring, the reliability of statistics and the governance and financial management of the Minister Plenipotentiary.

During his opening presentation, Gumbs emphasized that the purpose of the Audit Chamber extends beyond identifying weaknesses in government operations. Its work is intended to improve financial management, strengthen internal controls and encourage the responsible use of public resources.

The Chamber also reported that it spent approximately Cg 1.4 million of its Cg 1.6 million budget in 2025, representing 87.7 percent of its allocation.