GREAT BAY--The General Audit Chamber has identified what it describes as a longstanding accountability gap in the governance and financial management surrounding the Cabinet of the Minister Plenipotentiary, finding that approximately XCG 1.9 million in public funds is allocated annually to an operation whose legal, financial and accountability structure has never been fully formalized.
The findings are contained in the Audit Chamber’s September 2026 report,Audit into the Governance and Financial Management of the Minister Plenipotentiary, which examined the financial management of the Cabinet between 2021 and 2025.
At the center of the Audit Chamber’s concerns is the route taken by public money after Parliament approves it. The Cabinet’s annual allocation is included under the Ministry of General Affairs in St. Maarten’s national budget, but the approved funds are subsequently transferred in lump sums to Stichting Kabinet St. Maarten, a private-law foundation established in the Netherlands.
The Foundation is not part of the Government of St. Maarten and is not formally subject to the same public financial management framework that applies directly to Government. It serves as the legal employer of Cabinet personnel in the Netherlands and also receives and administers public funds used for Cabinet operations.
According to the Audit Chamber, financial reporting and controls exist in practice, including annual audited financial statements. However, Government has never established a comprehensive formal framework defining the ownership of the public funds as they move between Government, the Foundation and the Cabinet’s bank account, the financial rules that apply at each stage, or the respective responsibilities for oversight and accountability.
The issue dates back to the early years of Country St. Maarten. Records reviewed by the Audit Chamber show that Government approved the transfer of XCG 500,000 to the Foundation in 2011 and stated at the time that conditions needed to be established for accounting and reporting by the Cabinet. The Audit Chamber said it could not establish that this requirement ever resulted in a formal accountability framework.
€533,922 in Government funds held by Foundation
One of the clearest examples of the problem emerged in the Cabinet’s 2024 financial statements, which recorded a receivable of €533,922 from the Foundation. The amount represented Government funds intended for Cabinet operations that were still being held by the Foundation at the end of the year.
The Audit Chamber noted that the financial statements therefore treated the Cabinet and Foundation as separate parties. However, the Cabinet itself does not have separate legal personality, creating uncertainty over who legally held the claim to the €533,922.
The report also found an absence of separate financial statements for the Foundation, despite its Articles of Incorporation requiring it to prepare its own annual balance sheet and statement of income and expenses.
The Audit Chamber concluded that these circumstances demonstrate why greater clarity is needed over the legal status and ownership of public money throughout the funding process and over who is ultimately accountable to Government and Parliament.
The audit also raised questions about who has the formal authority to commit St. Maarten financially in connection with the Cabinet’s operations.
The Audit Chamber could not confirm that either the Minister Plenipotentiary or the Cabinet Director was formally authorized under the applicable mandate framework to enter into financial obligations on behalf of the Country. Neither official was included in the mandate register reviewed by the auditors.
The report noted that obligations exceeding XCG 5,000 may, subject to other requirements, only be entered into by a functionary listed in the mandate register after prior authorization by the Council of Ministers.
While Cabinet expenses are reflected in annual budgets approved through Government and Parliament, the Audit Chamber stressed that the availability of budgeted money does not by itself establish the legal authority to enter into obligations on behalf of the Country.
Transaction records lacked complete audit trail
At the operational level, the Audit Chamber examined financial transactions from 2021 through 2025 against procedures established in the Cabinet’s own financial manual.
All sampled invoices contained completed approval stamps, but none had a purchase order attached. The supporting documentation also did not provide a complete audit trail showing all of the required control steps, including approval of orders, receipt and verification of goods or services, quality verification, confirmation of available budget and invoice verification.
The Audit Chamber therefore said it could not verify from the documentation attached to the sampled transactions whether all relevant control procedures required by the Cabinet’s own manual had been followed.
The auditors also identified concerns over the concentration of financial responsibilities. The Director was authorized in practice to enter into financial obligations, approve payments and manage petty cash, functions the Audit Chamber said would normally be separated as part of proper internal controls.
The report acknowledges that the small size of the organization can make complete segregation of duties difficult and notes that some compensating controls are used. It nevertheless recommends stronger controls and independent review where responsibilities cannot be fully separated.
XCG 180,000 in vehicle costs
The audit also examined benefits and recurring expenses connected to the Minister Plenipotentiary and Deputy Minister Plenipotentiary and found that several continue to be based on a 2012 Council of Ministers decision.
Those arrangements cover matters including housing and utilities, telephone and internet expenses, travel, health insurance and use of an official vehicle. The Audit Chamber found that some recurring expenses have no current financial limits, including telephone and internet expenses and gas, water and electricity costs.
The maximum housing reimbursement of €1,500 has remained unchanged since 2012, with no updated Government decision identified by the auditors.
Transportation costs also drew attention. In 2024, the Cabinet maintained three vehicles with total vehicle-related costs of €91,195, approximately XCG 180,000.
The Cabinet subsequently reassessed its vehicle requirements. One vehicle was sold and another was scheduled for sale in 2026. The Audit Chamber said the changes indicated that opportunities existed to reduce transportation costs.
A new draft policy addressing housing, travel, allowances and official vehicles has been developed and submitted to Government, but had not been formally adopted when the audit was completed.
The Audit Chamber places significant responsibility on Government to resolve the broader accountability issues.
It recommends that Government decide whether the current Foundation and Cabinet structure should be formally established, fundamentally revised or replaced. Government is also being urged to clearly define the mandate of the Minister Plenipotentiary, formalize the relationship between the Minister Plenipotentiary, the Council of Ministers and the Minister of General Affairs, and establish clear accountability requirements for public funds administered through the Foundation.
The Audit Chamber has outlined three possible paths: formalizing the existing structure through agreements, discontinuing the Foundation-based structure and bringing the operation directly within Government, or establishing a formal legal framework governing the Cabinet and its relationship with Government.
It does not prescribe which option Government should choose, but says the existing uncertainties over public funds, responsibilities, reporting and oversight must be resolved regardless of the model selected.
The report does not make a finding of fraud, theft or misappropriation. It acknowledges that audited financial statements are prepared, internal policies and procedures exist, payment approvals were present on the invoices reviewed and fixed-asset records are maintained.
The Audit Chamber’s concern is that these controls operate within a structure in which fundamental questions about legal authority, ownership of public money and parliamentary accountability remain unresolved.
The Audit Chamber said implementation of its recommendations will require action by several parties, including Government, and indicated that it intends to follow up on their implementation and report on progress where appropriate.
