Audit reveals need for transparency in Government travel and Parlatino membership – StMaartenNews.com – News Views Reviews

PHILIPSBURG — The General Audit Chamber has released its findings on the effectiveness of Parliament’s membership in Parlatino, an intergovernmental organization, and the fiscal prudence of government travel expenditures in 2022. The report sheds light on the high costs associated with Parlatino participation and the lack of accountability in travel-related spending, prompting recommendations for more stringent policies to ensure transparency and value for money.

Since joining Parlatino in 2010, St. Maarten has paid ANG 518,999 in membership fees and incurred over ANG 2.1 million in travel-related expenses. These costs include per diem allowances and airfare for attending Parlatino assemblies, with four trips recorded in 2022 alone. Membership fees and travel expenses for that year totaled ANG 213,111, accounting for over a third of Parliament’s total travel expenditure.

Parlatino, primarily composed of Latin American member countries, aims to foster legislative harmonization among its members. However, St. Maarten’s legal system differs significantly from those of other Parlatino nations, raising concerns about the organization’s relevance and effectiveness for the island. Despite 13 years of membership, tangible outcomes remain limited, with only one official report submitted to the Audit Chamber on the effectiveness of Parlatino participation.

To evaluate the value of Parlatino membership, the General Audit Chamber conducted a survey among Members of Parliament (MPs). Seven MPs responded, representing a 47% response rate. While the survey data may not be fully representative, it provided valuable insights into Parliament’s perception of Parlatino.

Four MPs stated that participation in Parlatino has yielded no tangible outcomes. In contrast, one MP highlighted significant achievements, including the drafting of five laws inspired by Parlatino’s initiatives. Furthermore, six MPs expressed the necessity of exploring alternatives to Parlatino, with three specifically recommending regional organizations as potential options.

The report also highlights the challenges posed by Parlatino’s primary working language, Spanish, which limits St. Maarten’s ability to fully engage. According to the General Audit Chamber these findings underscore a critical need to reassess the value and direction of St. Maarten’s continued involvement in Parlatino.

The Chamber’s review of government travel in 2022 revealed several areas of concern. Business-class flights were frequently used, even for short trips, due to the absence of clear regulations. Per diem rates were set at ANG 720 per day, with no requirement for MPs to submit expense reports or return unspent funds.

Six out of seven MPs supported introducing criteria for flight class selection and stricter accountability measures for per diem expenditures. However, three MPs opposed the reimbursement of unused per diem, highlighting a divide on this issue.

The General Audit Chamber recommends several measures to enhance fiscal responsibility and transparency. These include amending travel policies to mandate post-travel expense reporting, ensuring that unspent per diem funds are reimbursed to uphold fiscal accountability, and establishing clear criteria for flight class eligibility to minimize travel costs. These steps aim to promote efficient use of public funds and greater transparency in financial practices.

The Audit Chamber, applying international auditing standards, evaluated Parliament’s participation in Parlatino based on three key principles. Economy: Although per diem costs remained within prescribed limits, inadequate documentation undermines transparency, and the preference for business-class travel added unnecessary expenses. Efficiency: The ANG 2 million spent on Parlatino participation since 2010 has yielded limited measurable outcomes. Survey responses highlighted that the benefits do not justify the costs, with four MPs expressing that the results have been minimal. Effectiveness: Achieving Parlatino’s goals, such as legislative harmonization, is difficult due to the significant differences between Sint Maarten’s legal system and those of other member nations. The report suggests exploring alternative regional organizations that might better align with Sint Maarten’s unique needs.

The Audit Chamber has identified several regional organizations that may provide more tailored collaboration opportunities for Sint Maarten. These include the CARICOM Parliamentary Assembly, which emphasizes regional initiatives and legislative cooperation; the Association of Caribbean States (ACS), which focuses on addressing shared challenges across the Caribbean; and the Organization of Eastern Caribbean States (OECS), which promotes economic integration and development among Eastern Caribbean nations. Adopting a regional approach could enable cost-effective collaboration and a stronger focus on shared goals relevant to St. Maarten. However, transitioning away from Parlatino would require Parliament to adapt to new protocols and priorities, potentially resulting in additional costs and resource demands.

To strengthen transparency and accountability, the Audit Chamber has proposed several policy reforms. These include requiring justifications for all in-person travel, supported by comprehensive post-travel reports; establishing clear and consistent criteria for flight class selection based on travel duration; mandating the return of unspent per diem funds to uphold fiscal responsibility; and exploring regional alternatives to Parlatino to ensure optimal use of resources. These measures aim to enhance Parliament’s operational efficiency and alignment with its financial objectives.

The General Audit Chamber’s findings underscore the need for a critical review of St. Maarten’s participation in Parlatino and the broader framework governing public sector travel.

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Report: https://arsxm.org/wp-content/uploads/2024/06/Auditing-public-sector-travel-and-Parlatino-membership.pdf

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