The impact of the extra 30 million euros that the Ministry of Interior Affairs and Kingdom Relations BZK allocated for the Caribbean Netherlands (CN) cannot be determined. This was concluded by the Netherlands Court of Audit in their report on the Annual Report 2023, published on Wednesday, May 15.
In the coalition agreement of the fourth Rutte cabinet, the Dutch government agreed to invest an additional 30 million euros in the Caribbean Netherlands. This in addition to the overall government funding in place since 2022-2023. For this additional funding, the cabinet set three main goals: a stronger labour market on the islands, orderly financing of the public bodies’ basic services, and more affordable living standards.
The additional funding has been spent on a variety of initiatives and projects in the Caribbean Netherlands. The Court of Audit investigated the three largest projects that had concrete, measurable goals and concludes that these projects contributed to the third main goal: more affordable living standards for the residents of Bonaire, St. Eustatius and Saba.
However, the auditors wonder whether the additional funding has had an additional impact on top of existing plans and policies. In other words, did the additional 30 million euros make an actual difference?
“We could not determine, for instance, whether the projects would have been carried out without additional funding from the CN envelope. Furthermore, we found that the Minister of BZK would not evaluate the contribution made by the additional investments from the CN envelope, despite pledging to do so in the 2023 and 2024 Kingdom Relations budgets (IV),” writes the Court of Audit. Without this evaluation, “lessons cannot be learned and future investments may be less efficient,” conclude the auditors.
The Court of Audit also discussed their findings on the operational management of the ministry’s Kingdom Relations department. The Court of Audit has been critical of Shared Service Organisation Caribbean Netherlands (SSO-CN) for several years. Fortunately, the auditors found that “SSO-CN had made good progress in 2023 by taking measures to improve information security and IT management and that the quality of procurement management was satisfactory.”
In terms of the operational management of the minister himself, the Court of Audit found that the coordinating role of the ministry can be challenging. According to the Act on the Public Entities Bonaire, St. Eustatius and Saba WoIBES, the minister is responsible for coordinating government policy in the Caribbean Netherlands. “In other words, the minister is responsible for policy coherence and policy ministers are responsible for the formulation of their own policies,” it was stated in the report.
However, “in practice, the Minister of BZK has to plot a delicate course between the ministries’ individual responsibilities and his own responsibility for the effectiveness and efficiency of government policy in the Caribbean Netherlands as a whole. To succeed, he has to rely on the willingness of other ministers because they implement government policy in the Caribbean Netherlands. We also see that money alone is not always the answer. Policy ministries often make ad hoc investments but their budgets do not provide for longterm upkeep.”
In his reaction to the audit, sent to President of the Netherlands Court of Audit Pieter Duisenberg, Caretaker Minister of Interior Affairs and Kingdom Relations says that he recognises the challenges when it comes to evaluating both the additional funds and the coordinating role of the ministry.
“I am pleased to read in the policy evaluation that the three studied projects from the CN envelope have had a positive impact on the affordability of the lives of the residents of the Caribbean Netherlands. And also that you think it is likely that all 13 expenses of the CN envelope have positively impacted one or more goals of the CN envelope. These are important conclusions for me, as we are doing it for the residents of the Caribbean Netherlands,” writes the minister.
Though De Jonge understands why the Court of Audit could not determine the effects of the additional funds, the minister is “convinced that, thanks to the means of the coalition agreement, steps have been made that would otherwise not have been.” The minster argues that, as a result of the additional 30 million euros, both the free allowances and other benefits “could be increased to levels that were unimaginable in the previous period.”
In terms of the coordinating role of the ministry, De Jonge writes that he recognises the challenging position described by the auditors and that he agrees that expanding the responsibility of the state secretary would ultimately not lead to a better government policy. But, the minister argues, the state secretary has made important steps, such as the increasing the free allowance, implementing the comply or explain policy and allocating funds to improve the life standards of the residents of the Caribbean Netherlands all of which have boosted the ministry’s coordinating role.
The Netherlands Court of Audit checks whether the Dutch central government spends public funds economically, efficiently and effectively. Our statutory task is to audit the revenue and expenditure of central government. We report on our work once a year to Parliament on Accountability Day (the third Wednesday in May). Parliament can use our audit opinion to grant the government discharge, thus releasing it from responsibility for its implementation of policy. We also report separately to Parliament so that its members can decide on the effectiveness of each minister’s actions during the previous year.
The Daily Herald.