COHO gets authority to audit government-owned companies
PHILIPSBURG — The Ministry of Home Affairs and Kingdom Relations submitted the draft consensus kingdom law COHO (Caribbean Organizations for Reform and Development) to the Second Chamber and to the parliaments of St. Maarten, Aruba and Curacao on Friday. On the same day, the ministry launched the website COHO-acs.com that contains information about the legislation and the activities of the COHO. As of Sunday, the Parliament in Philipsburg had not yet published the draft law on its website, but it is available on the website of the Dutch Second Chamber.
There is consensus among the governments of the Netherlands, St. Maarten Curacao and Aruba about the draft legislation, but the parliaments of the respective countries still have to give their approval. The Dutch Council of State provided a critical 30-page long advice about the draft law. Most of the council’s criticisms have resulted in amendments to the original draft.
The COHO-law will remain in force for six years after it has been ratified, but it can endlessly be extended by two years at a time. The countries also have the option to end the legislation prematurely by law (in the Netherlands) or by national ordinance (on the islands), though it is unclear under which conditions this will be possible.
Within three years after the law takes effect Minister Hanke Bruins Slot (Home Affairs and Kingdom Relations) will send a report about the efficiency and the effects of the law. The minister will establish an evaluation committee no later than six months before this 3-year term expires. The chairman of this committee will have the approval of the ministers of general affairs of St. Maarten, Curacao and Aruba; three members are appointed in consultation with these ministers and one member will be appointed by the Dutch Minister of Home Affairs and Kingdom Relations.
The COHO-organization consists of three members nominated by the Minister of Home Affairs and appointed by royal decree. These nominations are provided by an appointment-advice-committee. The Councils of Ministers of each of the three islands propose a member for this committee. However, this committee advises Minister Bruins Slot about the appointments. The law does not state that the minister is obliged to follow the advice.
Tte COHO-office will be established in The Hague. The objective of the organization has not changed since the idea was first presented: the promotion of reforms of an administrative nature, of sustainable government finances and of strengthening the economy. The tasks of the COHO will be supporting the development and execution of projects, programs and measures that are part of the respective country packages, and supervision of the progress of these initiatives.
The COHO cannot execute authorities that are the domain of the countries.
In consultation with the minister of general affairs – currently Prime Minister Silveria Jacobs – the COHO establishes an execution agenda. After consultation with Jacobs, Minister Bruins Slot can issue an instruction to the COHO related to its input in the execution agenda.
The options for COHO-support to the Caribbean countries are divers. The organization can directly or indirectly fund government entities, and it can provide expertise. It will also have the authority to audit government entities and government-owned companies. A fourth option is granting subsidies to citizens and private legal entities, with the inclusion of government-owned companies.
Plans of approach for any project require approval by the COHO. As long as the countries abide by the stipulations in the COHO-legislation they will be entitled to funding from the COHO and/or the Dutch government.
COHO can suspend financial support if a government entity or company does not execute measures in a timely manner or if these entities fail to provide information or cooperation.
Opinion piece: COHO-law sidelines Parliament
