PM Mercelina: Minister Plenipotentiary audit is not about fraud

GREAT BAY--Prime Minister Dr. Luc Mercelina told Parliament Wednesday that the General Audit Chamber’s findings concerning the Cabinet of the Minister Plenipotentiary in The Hague should not be interpreted as evidence of fraud or corruption, stressing that the report is focused on weaknesses in governance, accountability and financial controls that Government now has to address.

Responding to questions during the 2027 budget deliberations, Mercelina said Government received the final Audit Chamber report last Friday and that he is fully aware of its findings concerning the governance and financial management arrangements surrounding the Minister Plenipotentiary, the Cabinet in The Hague and the foundation through which its personnel and finances are administered.

The Prime Minister stressed that the report is not an accusation that public money was stolen or improperly diverted. He said its purpose is to improve the system of checks and balances and ensure that public funds used to operate an important institution representing St. Maarten in the Netherlands are governed by clear rules and adequate oversight.

Mercelina said the report focuses primarily on governance arrangements, accountability structures, reporting relationships, oversight mechanisms, internal controls and the administration of public funds. He said Government welcomes the recommendations and intends to discuss them within the Council of Ministers and with the other relevant parties involved.

According to the Prime Minister, particular attention will be given to the governance structure surrounding the Cabinet, reporting and oversight responsibilities, mandates and authorization to enter into financial commitments, financial management, internal controls and Government’s accountability to Parliament.

His comments follow the September publication of the General Audit Chamber’s audit into the governance and financial management of the Minister Plenipotentiary, covering the period 2021 to 2025. The Peoples’ Tribune previously reported that approximately Cg. 1.9 million in public funds is allocated annually for the Cabinet’s operations through the Ministry of General Affairs, after which funds are transferred to Stichting Kabinet St. Maarten, a private-law foundation in the Netherlands.

The Audit Chamber found that financial reporting and internal controls exist, including annual audited financial statements, but said Government had never established a comprehensive formal framework clearly determining the status and ownership of public funds as they move between Government, the foundation and the Cabinet, or defining the respective responsibilities for oversight and accountability.

Another issue identified by the auditors concerned the authority to financially bind the Country. The Audit Chamber could not establish that either the Minister Plenipotentiary or the Cabinet Director was included in the mandate register authorizing officials to enter into certain financial obligations on behalf of St. Maarten. The report noted that the fact that expenditure is included in an approved national budget does not, by itself, provide the legal authority to enter into obligations for the Country.

The audit also reviewed transactions from 2021 through 2025. While all sampled invoices contained approval stamps, the auditors reported that purchase orders were not attached and that the documentation did not provide a complete trail showing that every control required under the Cabinet’s own financial procedures had been followed.

Importantly, the Audit Chamber itself did not make a finding of fraud, theft or misappropriation. Its concern centered on whether existing financial controls are operating within a sufficiently clear legal and accountability framework. The auditors acknowledged that audited financial statements are prepared, internal policies exist, approvals were present on the invoices reviewed and fixed-asset records are maintained.

Mercelina made a similar point in Parliament, characterizing the issue as one involving the way the structure has historically been managed rather than evidence that corruption occurred within the St. Maarten House operation.

The Audit Chamber has recommended that Government make a decision on the future structure, including whether to formally regulate the existing arrangement with the foundation, discontinue the foundation-based structure and incorporate the operation directly within Government, or establish a formal legal framework governing the Cabinet and its relationship with Government.

Mercelina also addressed the Cabinet’s budget, explaining that its allocation had previously been reduced because sufficient carry-over funds from earlier years were available to cover operational expenses. Those reserves have since been exhausted, he said, requiring the budget to return to a level that allows the Cabinet to continue meeting its operating obligations.

The Prime Minister’s remarks provide Government’s public response to concerns raised following publication of the audit. The report places responsibility on Government to clarify the legal, financial and accountability arrangements surrounding the Minister Plenipotentiary’s Cabinet and the foundation supporting its operations.

Mercelina indicated that Government will now take the recommendations forward, with the objective of strengthening oversight, clarifying responsibilities and ensuring that the management of public funds connected to St. Maarten’s representation in The Hague is supported by clearer checks and balances.

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