Promoting Integrity & Transparency

Transcription

1 Promoting Integrity & Transparency Sint Maarten Annual Report 2014

2 PROMOTING INTEGRITY & TRANSPARENCY Objectives NATIONAL ORDINANCE REGISTRATION AND FINANCES OF POLITICAL PARTIES: 1) To promote a transparent and democratic structure of political parties; 2) To promote the integrity of political parties; 3) To prevent (the appearance of) conflicts of interest; 4) To promote a balanced political process. Annual Report

3 Table of contents Page Preface No. 3 Introduction 4 1. Electoral Council 5 2. Operational Management Daily operations Finances Electoral Council Meetings of the Electoral Council Information campaign Information sessions Media Website National Ordinance on Registration and Finances of Political Parties Registration of political parties Finances of political parties and candidates Registration of donations political candidates Online database Deadline registration donations political candidates Review registration of donations political candidates Statistics donations received by political candidates Declarations article 53 of the National Ordinance on Registration 29 and Finances Political Parties Declaration Members of Parliament Elect Declaration Ministers Appointed Outlook Registration of donations political parties Annual report political parties Observations and recommendations In conclusion Appendices Sources 46 2

4 Preface The Electoral Council is an independent body within the constitutional system of Sint Maarten. According to the National Ordinance on Registration and Finances of Political Parties, the Electoral Council has been assigned with the tasks for the legal registration of political parties and the auditing of the funds of those parties. Together the regulations in question constitute the most stringent legislation within the Dutch Kingdom. The first pillar of this legislation seeks to promote a transparent and democratic structure of political parties. The second pillar is aimed at promoting the integrity of political parties, preventing conflicts of interests and promoting a wellbalanced and transparent political process. Consequently, as such, Article 55, paragraph 2 of the Constitution has been executed. Although the National Ordinance on Registration and Finances of Political Parties was already in effect on October 10, 2010, it was not until January 2014, that the members and substitute members of the Electoral Council were appointed and sworn in. Subsequently, the Electoral Council had to hit the ground running to take all the necessary steps to ensure that the regular parliamentary elections of August 2014 could take place in accordance with the new legal regulations. It gives me great pleasure to be able to conclude that the Electoral Council, with the necessary cooperation of the political parties and their candidates in the elections, has succeeded in doing so. However, that does not change the fact that more still needs to be done, such as the establishment of a national decree constituting general measures to formalize the remunerations to be allotted to the members of the Electoral Council. Hereby, I present to you the very first annual report of the Electoral Council. Naturally, its primary focus is the design of procedures aimed at the realization of its legal tasks. In addition, the emphasis is placed on the process of the registration of political parties and of the registrations of candidates of the donations received by them. The registrations of the donations received by the political parties and the annual reports of the parties and their financial accounts were submitted to the Electoral Council in 2015, as stipulated by law. The relevant procedures and reviews conducted will be discussed in the subsequent annual report of the Electoral Council. I hope that this annual report will give an impression of the tasks and important role of the Electoral Council within the political process of Sint Maarten. Sint Maarten, October 2015 Bert Hofman Chairman Electoral Council 3

5 Introduction On the 10 th of October, 2010, the Netherlands Antilles were dissolved and Sint Maarten became a self-governing body within the Kingdom of the Netherlands. Consequently, Sint Maarten got its own Constitution and in order to comply with Article 55 of the Constitution a number of institutions had to be established of which the Electoral Council was one. The Electoral Council would be the first of its kind in the history of the Kingdom of the Netherlands. The Electoral Council was established to promote a transparent and democratic structure of political parties and to ensure integrity of the political parties, prevention of conflict of interests and the balance of the political process. Its objective is also to promote good governance and a proper financial administration by both political parties and the candidates as stipulated in the National Ordinance on Registration and Finances of Political Parties. The Electoral Council should have been in place at the start of the new status of Sint Maarten on October 10, However, this did not take place and the members of the Electoral Council were not appointed until

6 1. Electoral Council The members of the Electoral Council were officially appointed by National Decree on January 7, 2014, which was published in the National Gazette of Sint Maarten on January 10, His Excellency Governor Eugene B. Holiday administered the oath to the members and substitute members of the Electoral Council, on Thursday, January 23, 2014, during an official ceremony at the Cabinet of the Governor. During the ceremony Governor Holiday underscored that: The acceptance of the appointment as members of the electoral council is a serious one; one in which you have decided to play a critical role in fostering and upholding the orderly and proper functioning of our democratic system... Considering the issues involved I wish to emphasize that the importance of ensuring the proper registration and transparent financing of political parties, for the proper governance and thus overall development of our society, cannot be overstated. He further stressed the need for the Electoral Council to hit the ground running and set up all the mechanisms necessary for the upcoming parliamentary elections. His Excellency the Governor of Sint Maarten with the members of the Electoral Council. 5

7 2. Operational management The Electoral Council is an independent body of the Government of Sint Maarten. The members of the Electoral Council are nominated by an appointment committee. The nomination is done by the appointment committee consisting of the President of the Common Court of Justice of Aruba, Curaçao, and Sint Maarten, Bonaire, Sint Eustatius and Saba, the vice-chairperson of the Council of Advice of Sint Maarten and the chairman of the General Audit Chamber of Sint Maarten. The members of the Electoral Council are appointed for a term of seven years by National Decree. The Electoral Council comprises of a chairman, a deputy chairperson, a member and two substitute members. The following persons were nominated by the appointment committee to be members of the Electoral Council: mr. Bert G. Hofman (chairman), mr. Genara C. Richardson-Nicolaas (deputy chairperson) and drs. Linda A. Richardson. The appointed substitute members are mr. Marlène Mingo and mr. Jeroen Veen. The Electoral Council members. From left to right: mr. G.C. Richardson-Nicolaas, mr. B.G. Hofman and drs. L.A. Richardson. 6

8 2.1. Daily operations In view of the fact that this was the first Electoral Council established within the Kingdom of the Netherlands, the Electoral Council had to be set up by its members without any directives or guidelines. On April 1, 2014, the Electoral Council officially opened its doors to the general public on Backstreet 145B. Before the doors of the office officially opened the Electoral Council conducted its operations at the law firm office of the Chairman of the Electoral Council since there was no office space available for the Electoral Council. The office of the Electoral Council is staffed by a part-time administrative assistant. The office of the Electoral Council on Backstreet 145b, Philipsburg. The then Minister of General Affairs of Sint Maarten, Mrs. Sarah Wescot-Williams, assisted in finding office space for the Electoral Council. The office which 7

9 accommodates housing for the Electoral Council was the furnished office of the former Security Department of the Netherlands Antilles, which seemed to have been hurriedly deserted in October The Electoral Council worked together with the Department of Facilities to further equip the office. The Prime Minister officially visited the office of the Electoral Council on April 9, However, to date, despite numerous requests, several pieces of the existing office furniture were not replaced, such as the filing cabinets that are rusting and cannot be closed properly. Neither was the urgently needed conference table ever delivered. The Prime Minister had previously stated that: "The Electoral Council is one of the important bodies that has been created by law as part of the entire electoral process. The Electoral Council, which is chaired by attorney Bert Hofman, is the body to which political parties submit their request for registration. Over the last couple of weeks on our sister island of Curaçao there have also been issues with regards to political parties registering etc. On St. Maarten political parties need to be an association and this is not yet the case on Curaçao. A political party on Curaçao is suggesting now that political parties need to be an association so in that respect St. Maarten is a step ahead." Press release from the Cabinet of the Prime Minister of Sint Maarten April 14, Prime Minister Mrs. Sarah Wescot-Williams visits the office of the Electoral Council. 8

10 2.2. Finances of the Electoral Council Article 4 of the National Ordinance on Registration and Finances of Political Parties, stipulates that following consultation with the Electoral Council, Parliament shall provide all facilities for proper and independent performance of its tasks. In view of this the Electoral Council held a meeting with the then President of Parliament, drs. Gracita Arrindell, to discuss the function and urgent needs of the Electoral Council. Following this meeting the President of Parliament had the National Ordinance on Registration and Finances of Political Parties put on the Parliament s website and sent a letter to the Minister of General Affairs asking urgent assistance for the Electoral Council. As a result thereof, the Electoral Council met with the then Minister of General Affairs and with the Secretary General of the Ministry of General Affairs. During these meetings the preliminary budget and the possibility of having Service Level Agreement between Government and the Electoral Council were discussed. Articles 35 and 40 of the National Ordinance on Accountability, state that in drafting the government budget for a particular year, the Minister of Finance shall take into account the estimate of the expenditure required by the Electoral Council in the following year. In order to comply with the National Ordinance on Accountability the Electoral Council submitted its preliminary budget to the Minister of Finance on several occasions, see Appendix A. However, the budget was never incorporated in the country s budget. The Electoral Council received twice an advance to the budget for its operations. Electoral Council meeting with President of Parliament drs. Gracita Arrindell. Subsequently, the Electoral Council drew up a Service Level Agreement indicating the assistance the Electoral Council would require and is entitled to. The draft Service Level Agreement states among others that the Department of Personnel and Organization would be responsible for the administration and the staff the Electoral Council would require. The draft Service Level Agreement was submitted to the Minister of General Affairs and the Minister of Finance in 2014 on several occasions, 9

11 but to date the Electoral Council did not receive a response regarding this matter. Consequently, the Service Level Agreement has not yet been signed. When the Electoral Council was established no provisions had been made to formalize the remunerations for the Electoral Council members and substitute members. the Electoral Council took on the task of drafting a National Decree regarding the remuneration of the members of the Electoral Council in order to assist the Ministry of Finance and to speed up the legal process of establishing the remuneration. At time of compilation of this report the National Decree was not yet finalized by the Government of Sint Maarten Meetings of the Electoral Council Immediately after its instalment by the Governor of Sint Maarten, the Electoral Council held weekly general meetings on Tuesday afternoons. In the year 2014 the Electoral Council held at least 39 general meetings which were primarily attended by the three standing members of the Electoral Council. At all times the substitute members were invited to attend the general meetings. They attended a few meetings during the first few months. One of the substitute members indicated that meetings could not be attended due to lack of time. The other substitute member notified the Electoral Council that no meetings would be attended due to lack of a National Decree establishing remuneration of the Electoral Council members. In addition to its weekly general meetings, the Electoral Council held several extraordinary meetings to dedicate time to urgent and important matters which required more in-depth attention. Furthermore, the Electoral Council held discussions with several persons and institutions, including: The Governor of Sint Maarten President of Parliament Prime Minister of Sint Maarten The Secretary General of General Affairs Parliament of Sint Maarten Transparency International Committee Wit Doing the right things right 10

12 In connection with the parliamentary elections in August 2014 and the registration of political parties to participate in said elections, the Electoral Council also met with: The department of Legal Affairs The Civil Registry The Central Voting Bureau With regard to the second task of the Electoral Council, the monitoring and supervision of the finances of political candidates and political parties, the Electoral Council members had discussions with the General Audit Chamber regarding its role in this process and the interpretation of the law. The Electoral Council met with several accounting firms after being informed by political parties that the accounting firms on Sint Maarten were not prepared to audit political parties. The accounting firms indicated to the Electoral Council that in principle they were not opposed to audit the financial statements of the political parties. The Electoral Council also met with all political parties, their representatives and several candidates in connection with the execution of the National Ordinance on Registration and Finances of Political Parties. Approval registration of Citizens for Positive Change 11

13 In order to be informed of the manner in which the political parties recruited their membership, the Electoral Council attended congresses and public meetings of 5 political parties leading up to the 2014 Parliamentary Elections. Electoral Council at a congress of the National Alliance. The Concordia Political Alliance and the Citizens for Positive Change did not have any meetings and the United Sint Maarten People Party indicated that they had held its congress in the previous year. During the election campaign, the Electoral Council was also represented at the political debates held at the Belair Community Center and the women s debate held at the University of Sint Maarten. 3. Information campaign Since the establishment of the Electoral Council, one of its main focus was to embark on an information campaign. The objective was to provide information to the general public and particularly to existing and future political parties and potential candidates on the tasks of the Electoral Council, the National Ordinance on Registration and Finances of Political Parties and the consequences in case of noncompliance with the law. The Electoral Council collaborated with the Department of Communications to inform the public through press releases and an informative 12

14 documentary. An illustrative outline of the information campaign during the first half of the month of April is indicated below. DATE TIME VENUE ACTIVITY TARGET GROUP Press release re. Office EC Radio station PJD Bermon Law Office Interview by Lloyd Richardson Viewpoint Chairman interview with the Today newspaper General public General Public General Public Press Release re Applications political parties General Public :00pm EC Office Visit Prime Minister to EC Office :00pm- 10:00pm :00pm Parliament Building USM (Rm 203) Information session General Public Information session Information campaign: Calendar of activities April 1 st -15 th, 2014 Central Committee 3.1. Information sessions In collaboration with the University of St. Martin, the Electoral Council scheduled its first information session for the general public on Wednesday, April 9, 2014, at the University of St. Martin. The purpose of this session was to inform especially the political parties, aspiring political candidates and the business community of the National Ordinance on Registration and Finances of Political Parties and the role of the Electoral Council in executing this law. This information session was well attended by representatives of political parties, aspiring political candidates, the general public as well as the press. During the first information session, the Electoral Council clearly illustrated that it would implement the law and was not to be considered a tiger without a bite. 13

15 The second information session at the University of St. Martin on Wednesday, July 30, 2014, was specifically intended for the political parties and candidates to explain the process of registering donations received and the regulations and restrictions pertaining to donations made to candidates and political parties. Regrettably, this very important session was not as well attended as was expected especially in view of the importance of the financial aspect of the National Ordinance. During the session, several members of the audience expressed concern regarding the lack of a cap for the campaign expenditures by candidates and parties alike and recommended that in order to have a more level playing field amongst the parties and candidates the National Ordinance should also restrict campaign expenditures. It was also noted that several candidates were advised to establish a foundation for their campaign in order to evade expected issues with the Tax Office. Several of questions asked by the public during the information sessions can be found in Appendix B. As part of the information campaign, the Electoral Council held extensive meetings with the Prime Minister of Sint Maarten, the President of Parliament of Sint Maarten and gave a presentation to the Central Committee of the Parliament of Sint Maarten on April 14, 2014, providing information on the role of the Electoral Council in the upcoming Parliamentary Elections and on the relevant National Ordinance. The latter presentation was broadcasted live by the radio stations Pearl FM and PJD2. Both stations repeated sound bites of the presentation to the Members of Parliament on the Saturdays following the presentation. The media also gave extensive coverage of the presentation. The Electoral Council also offered to give a presentation to the then Council of Ministers but did not receive an invitation from the Council of Ministers to do so. 14

16 3.2. Media In June 2014, the Electoral Council was invited to the Department of Communication to discuss the compilation of a documentary on the electoral process aimed at informing the general public about the 2014 Parliamentary elections. This documentary was aired on television station SXM Cable TV 115 and was also made available online on the Government s website. The Electoral Council and the Department of Communication also discussed how the Department of Communication could assist the Electoral Council in informing the public and about publication of decisions made by the Electoral Council in the local newspapers. The Electoral Council submitted 14 press releases to the Department of Communication for distribution to the media in the year Several radio and television hosts invited the Electoral Council for interviews on their programs, including but not limited to: Elektra Wake up with Elektra In the Elektrick Chair Oral Gibbs Speaking of Everything Andrew Bishop IN DEPTH Lloyd Richardson/Don Hughes People s Voice Angelique Roumou A Betta Place Mr. Samuel Allen Jr. of PJD2 held numerous interviews with members of the Electoral Council Website In order to intensify the information campaign and become more visible, the Electoral Council retained a graphic designer to design its logo and develop its website The official decisions made by the Electoral Council regarding the registration of the political parties and the reference name to be placed above the candidates list are made available to the general public on this website in the Dutch and English languages. The laws and legislation concerning the Electoral Council and the Elections, the constitution of Sint Maarten, the Articles of Association of the registered political parties and press releases can be found on the website as well as a list of frequently asked questions and a form to contact the Electoral Council. 15

17 Screenshot of the homepage of the website of the Electoral Council. 4. National Ordinance on Registration and Finances of Political Parties According to Article 55, sub 2 of the Constitution of Sint Maarten, regulations to promote a balanced and responsible process of elections shall be laid down by national ordinance. The National Ordinance on Registration and Finances of Political Parties entails the execution thereof. There is a close relation with the Election Ordinance. Both ordinances should therefore be viewed in conjunction. The National Ordinance on Registration and Finances of Political Parties has two objectives. The first is to promote a transparent and democratic structure of political parties. Political parties are assigned the constitutional function in the legislation that they have long held in practice. Such has been done by anchoring political parties in the association form. It is desirable that political parties have a proper legal structure that is transparent for the public and is democratic. An association offers the participation of members who contribute to the policy of the association in a democratic manner, by voting. 16

18 The second objective of the National Ordinance on Registration and Finances of Political Parties is the promotion of the integrity of political parties, the prevention of (the appearance of) conflicts of interest and the promotion of a balanced and clean political process. Excessively high donations to candidates of parties, in particular, entail a risk of a conflict of interest. For that reason, the prohibition of excessively high donations is enforced. In this way, a balanced progress of elections is also promoted, as the law creates standard rules regarding donations that political parties and their candidates may receive for their election campaigns. The preparations for the National Ordinance on Registration and Finances of Political Parties drew from the recommendations of the Konfiansa report of the Constitutional Affairs Agency (1999), commissioned by the government of the Netherlands Antilles. Parts are also drawn from the National Ordinance on Political Parties of Aruba (A.B. 2001, 96) Registration of political parties The first pillar of the tasks of the Electoral Council is to register all political parties desirous of contesting the parliamentary elections. Said parties are required by law to submit an application in writing requesting registration by the Electoral Council. The political parties are to be established according to the rules and regulations laid down in the National Ordinance on Registration and Finances of Political Parties. One of such regulations is that political parties must be established by notarized deed as an association with members eligible to cast their votes in a democratic and transparent manner on matters regarding the party. Apparently, since it was the first time, it was a challenging task for the majority of the political parties and notaries on the island to comply with this aspect of the National Ordinance. The registration of the parties also entails a separate registration of their references as legally required. The United People s Party was the first party to apply for registration on March 19, However, it must be mentioned that in 2013, Mr. Jacinto Mock tried to apply for registration of the Social Reform Party before the Electoral Council was installed. Consequently, he submitted the application of his party to the then Minister of General Affairs, Mrs. Sarah Wescot-Williams. 17

19 Mr. Jacinto Mock of the Social Reform Party submitting the application for registration. The date of the Parliamentary elections was set for August 29, 2014, and the postulation date was July 11, Article 16 of the National Ordinance on Registration and Finances of Political Parties implies that political parties should have applied for registration of their parties more than six weeks prior to the date of postulation in order to be allowed to participate in the 2014 Parliamentary elections. As a result, the final day for application for registration fell on May 29, This date however, was Ascension Day, a National holiday, and subsequently, the deadline for registration fell on May 28, Besides informing the parties about the documentation needed to apply for registration, the Electoral Council designed an application form for the parties to register with the Electoral Council (see Appendix C). The Electoral Council issued a number of reminders informing the political parties that they were required to register in due time in order for them to be allowed to participate in the 2014 Parliamentary elections. By the deadline eight political parties applied for registration by the Electoral Council. Representatives of The United People s Party apply for registration of the party. 18

20 The submitted applications were thoroughly reviewed by the Electoral Council. All parties, except the Citizens for Positive Change, were requested by the Electoral Council to make improvements to their Articles of Association in order to comply with the requirements laid down in the National Ordinance on Registration and Finances of Political Parties, Article 15, par. 2, stipulates that the Articles of Association of the parties shall in any event contain provisions concerning: a) the name of the political party; b) the objective of the political party; c) the names and the towns of residence of the board members and the other officials required by law or by the Articles of Association; d) the obligations of the members to the party, or the way in which such obligations can be imposed; e) the way in which membership is obtained and terminated; f) the method for convening the general meeting; g) the powers of the general meeting; h) the method of appointment and dismissal of the board members; i) the regulations for representative authorization; j) the financial resources and their management; k) a restriction on membership entitled to vote to persons with voting rights in the Parliamentary Elections; l) the obligation to publish a political program in good time before the elections; m) the procedure for drawing up the list of candidates for the Parliamentary Elections; n) the power to amend the Articles of Association; o) the dissolution of the association; p) the beneficiary of any surplus following settlement in the event of the dissolution of the association and the manner in which that beneficiary shall be determined. After submission of the requested changes to the Articles of Association in due time, the request for registration of all eight political parties were approved. Similarly, all references to appear above the list of candidates were approved, except the reference of one party that exceeded 15 letters, which is in violation of Article 20, par. 2 (a). The party was requested to change the reference and it complied with request. The 8 political parties and their respective references registered by the Electoral Council for the August 29, 2014, parliamentary elections were: The United People s Party (UP) Citizens for Positive Change (4 Positive Change) Social Reform Party (SRP) 19

21 The National Alliance (NA) United St. Maarten Party (US Party) Concordia Political Alliance Association (C.P.A.) The Democratic Party of Sint Maarten (DP) One St. Maarten People Party (O.S.P.P.) In accordance with corresponding National Ordinance, the Electoral Council issued its decision on the application of the political party for registration and its decision on the application to register a reference of a political party in writing to the applicant and to the Central Voting Bureau. Since the Central Voting Bureau was not yet established, the Electoral Council initially sent its decisions to the then Minister of General Affairs. As stipulated by law, the Electoral Council had these decisions published in the National Gazette and in the local daily newspapers. The One St. Maarten People Party receives the official decision regarding the registration of the party from the Electoral Council. The National Ordinance further stipulates that the Articles of Association of a political party, as well as amendments to these, shall be published at the party s expense in the National Gazette. The cost of the publication depended on the number of pages of the Articles of Association. Seven of the eight registered parties complied with this stipulation. Just before postulation date, the Citizens for Positive Change informed the Electoral Council that the party would not participate in the upcoming elections. On July 11, 2014, six of the registered parties postulated their list with candidates. Since the Concordia Political Alliance Association did not participate in the 2014 elections, but fielded its candidates on another party, it did not publish its Articles of 20

22 Association in the National Gazette in the year After being requested to do so, the Concordia Political Alliance Association complied with the request by publishing the Articles of Association in the National Gazette of November 27, Finances of political parties and candidates The second pillar of the tasks of the Electoral Council concerns the finances of the political parties and their candidates. The National Ordinance on Registration and Finances of Political Parties distinguishes three different areas regarding finances. Registration of donations given to political candidates; Registration of donations given to political parties; Annual report of political parties, including an audited financial statement Registration of donations political candidates According to the National Ordinance on Registration and Finances of Political Parties each candidate participating in the elections is required to submit a copy of the records of donations received to the Electoral Council. The record must be accompanied by a declaration signed by the candidate within a month following the date of the parliamentary elections Online Database In order to prevent the 90 candidates, who participated in the 2014 Parliamentary Elections, from submitting different types and registers of donations received to the Electoral Council, a form was designed listing the legally required information based on suggestions provided by the General Audit Chamber and one of the political parties. Subsequently, the Electoral Council met on several occasions with Corner Stone Solutions N.V. to discuss the possibility of developing an online database for registration of donations received by the candidates and the political parties based on the aforementioned form. The main objective of these meetings was for Corner Stone Solutions N.V. to design a digital uniform system to be used by all candidates and parties, that could also easily extrapolate several data for the Electoral Council. The database would include: the number of donations received per candidate per party, nationalities of individual donors, total donations given by an individual donor to a party and its candidates. The database would also simplify the process of registering the donations received for the candidates and the political parties. 21

23 All candidates and political parties received messages from the Electoral Council providing them with login information, including username and password, which enabled them to access their individual online registration form. Screenshot of the online database developed by the Electoral Council Deadline registration donations political candidates According to article 37, section 2 of the National Ordinance on Registration and Finances of Political Parties the last day for candidates to submit their registers of donations to the Electoral Council is a month after Election Day, i.e. Monday September 29 th, Before the deadline, the Electoral Council issued several reminders via the media urging the candidates to adhere to the deadline and informing them of the possible consequences in case of default. In addition, in order to accommodate the candidates and give them the opportunity to submit their donation registers on time, the Electoral Council extended its office hours on Thursday, September 25, Friday, September 26 and Monday, September 29, Surprisingly, by the end of the day on Friday, September 26, 2014, only 24 of the 90 candidates had submitted their registers of donations. However, on the last day to submit their registrations, Monday, September 29, 2015, a total of 62 donation registers were submitted to the Electoral Council and over 40 candidates visited the Electoral Council office to seek assistance with completing their registrations. Several candidates had not made use of the online database and had brought the 22

24 information either written by hand or verbally informed the Electoral Council office that they had not received any donations. As a result of this extra workload, the Electoral Council was not able to close the office until after 7:30 pm. Apparently, the public warning by the Electoral Council, informing candidates in default that their names would be published in the media resulted in an overwhelming response. One register of donations was found under the door the following day, Tuesday September 30, At the end of the deadline, 87 of the 90 candidates had submitted their registers of donations, one of which was not fully in accordance with the provisions of the National Ordinance. The missing registers and the incomplete register that was corrected were received on Friday October 3, 2014, by the Electoral Council. It should be noted here that while the treasurer of one party assisted its candidates with completing their donations registers, which he compiled in a folder and presented to the Electoral Council, candidates on other party lists were at a total loss on what to do with the donations registration and obviously did not receive any assistance or information from the party they ran on. The graph below shows an overview of the dates by which the donation registrations of the candidates were received. Donation registers received from the candidates by date Total amount of registers received

25 Review registration donations political candidates After receipt of all donation registers, the Electoral Council immediately embarked on the process of reviewing the registrations. During this process, the services of a financial expert were retained to assist the Electoral Council. Priority was given to the registers of the members of parliament elect, taking into account that they had to be sworn in on Friday, October 10, It appears from the preliminary review of the donation registers of the members of parliament elect that thus far the members of parliament elect had complied with the National Ordinance on Registration and Finances of Political Parties. Only after review of both the donations registers and the annual reports of the political parties, the Electoral Council will be able to ascertain whether this is the case. In reviewing the donations registers, it became evident that: a) Several candidates had established foundations for their campaign, based on advice they received to avoid problems with the Tax Inspectorate; b) While some candidates most of whom did not hold any public office - did not receive any donations at all, others, especially those who were better known within the society, received many high donations; c) In some instances, the exchange rate used resulted in a minor excess of the donation received. The Electoral Council maintained the exchange rate of US dollar 1, - = Antillean guilder 1,78. d) One candidate who received a donation from an overseas donor that exceeded the amount allowed for donors not registered on Sint Maarten, immediately returned the excess amount to the donor and showed evidence thereof to the Electoral Council. e) In a few cases, there was some doubt about the veracity of the donation registers, but there was not enough evidence to verify whether the donation registers were accurate. f) It was also rather difficult for the Electoral Council to verify how much cash donations were received if such donations were not registered by the candidate. After the initial review of the donations registers of all 90 candidates, the Electoral Council invited 11 candidates to a meeting in the first week of January, 2015, for clarification on several issues regarding their registers of donations. Some of these issues concerned donors, foundations or committees that had worked on behalf of the candidates. In addition, 7 candidates were requested in writing to provide the Electoral Council with further documentation regarding their registers of donations. 24

26 Statistics donations received by political candidates The Electoral Council compiled an overview of all donations received by the political candidates and summarized them in the following graphs. Graph I illustrates how many candidates received donations per political party; Not all candidates on the National Alliance list and the Democratic party list received donations; Out of the 23 candidates on the United People s Party list only two did not receive any donations; Only the party leader of the One St. Maarten People Party received a donation; The Social Reform Party only fielded one candidate. According to the leader of this party, he did not personally receive any donations and all donations received went to the party; 6 persons on the United St. Maarten Party list received a donation, excluding the party leader who indicated that he personally did not wish to receive any donations but referred his donors to give their donations to the party or to other candidates on the United St. Maarten Party slate. The Democratic Party of Sint Maarten The National Alliance One St. Maarten People Party Social Reform Party The United People's Party United St. Maarten Party United St. Maarten Party, 6 The United People's Party, 21 The Democratic Party of Sint Maarten, 13 The National Alliance, 12 Social Reform Party, 0 One St. Maarten People Party, 1 Graph I: Number of candidates that received donations per political party 25

27 Graph II illustrates the total number of donations received by individual candidates per party. The total number of donations received by individual candidates on The United People s Party exceeded the total number of donations received by individual candidates on the lists of all the other parties combined. The National Alliance One St. Maarten People Party United St. Maarten Party The National Alliance, 50 One St. Maarten People United St. Maarten Party, 14 The Democratic Party of Sint Maarten Social Reform Party The United People's Party, 190 The Democratic Party of Sint Maarten, 84 The United People's Party Social Reform Party, 0 Graph II: Number of donations received by candidates per political party 26

28 Graph III gives an overview of the total amount of funds received by candidates on the political party s slate in ascending order. It is obvious, that the amount of funds donated to the candidates on The United People s Party slate is much more than the amounts received by all the candidates on the other list combined Graph III: Amount of funds received by candidates per political party in NAf Social Reform Party One St. Maarten People Party United St. Maarten Party The National Alliance The Democratic Party of Sint Maarten The United People's Party Graph III: Amount of funds received by candidates per political party in NAf. 27

29 Graph IV gives an overview of the number of candidates per range of amount of donations. The amount of the donations received by candidates ranged between NAf. 0, -- and NAf ,21. The complete list of candidates with the total amount of donations received can be found in Appendix E. Number of candidates per range of amount NAf. 0 NAf. 1 -> 1000 NAf > NAf > NAf > NAf > Graph IV: Number of candidates per range of amount received 28

30 4.3. Declarations Article 53 of the National Ordinance on Registration and Finances Political Parties Declaration Members of Parliament Elect It is stipulated in section 1 of Article 53 of the National Ordinance on Registration and Finances Political Parties, that a candidate, elected to Parliament must submit to Parliament, together with his/her credentials, a declaration signed by him/her that (s)he did not act in contravention of the provisions of this National Ordinance during the election campaign. Several signed declarations were submitted to the Electoral Council by parliamentarians elect and prospective ministers all of which were substantively different from each other and at times inaccurate. In view of the above, the Electoral Council established a model declaration in accordance with the aforementioned Article 53 which was to be signed by all members of Parliament elect. This declaration was drawn up in Dutch and in English to preserve clarity and uniformity and states that: a) the parliamentarian elect is cognizant of the provisions laid down in the National Ordinance on Registration and Finances of Political Parties and b) the parliamentarian elect has not acted in contravention of said provisions during the election campaign for the Parliamentary elections that were held on August 29, On Wednesday October 8, 2014, the Electoral Council invited the parliamentarians elect to appear before the Electoral Council at its office on Backstreet to sign the aforementioned declaration in the language of their preference. Prior to the parliamentary discussions regarding the credentials of the parliamentarians elect, the Electoral Council had the signed declarations delivered to the President of Parliament of Sint Maarten. Member of Parliament Cornelius De Weever submits his declaration regarding Article 53 of the National Ordinance on Registration and Finances of Political Parties 29

31 Declaration signed by MP C.T. Emmanuel in the English language. Declaration signed by MP L.M. Romeo-Marlin in the Dutch language Declaration Ministers Appointed Article 53, section 2 of the National Ordinance on Registration and Finances of Political Parties stipulates that a minister must submit a declaration signed by him/her to the Electoral Council stating that (s)he did not act in contravention of the provisions of this National Ordinance during the election campaign within 30 days of accepting an appointment as minister. The Council of Ministers installed on December 19 th, 2014, by Governor Eugene Holiday were invited to appear before the Electoral Council on Tuesday January 6, 2015, to sign a declaration as stipulated in article 53 of the National Ordinance on Registration and Finances of Political Parties at the office on Backstreet 145B, Philipsburg (Appendix D). 30

32 4.4. Outlook Registration of donations political parties According to the National Ordinance on Registration and Finances of Political Parties, all registered political parties are required to submit to the Electoral Council a copy of the records of donations received during the entire year, accompanied by a declaration signed by the person or persons responsible before February 1 st of each year. During the compilation of this report, these registers of donations were received by the Electoral Council and were reviewed and sent to the General Audit Chamber to examine the registers for accuracy. The General Audit Chamber reported its findings to the Electoral Council Annual report political parties According to chapter 4 of the National Ordinance on Registration and Finances of Political Parties all registered political parties are required to submit to the Electoral Council an annual report, before April 1 st of each year. The annual report must be accompanied by a financial report and also needs to include an auditor s report by a registered accountant declaring whether the financial statements present a true and fair view. The deadline for submitting the 2014 annual report by the political parties to the Electoral Council will be March 31, During the compilation of this report, the Electoral Council was in the process of receiving and reviewing the annual financial reports of the political parties, which after review will be sent to the General Audit Chamber in order to verify the accuracy of the information in the aforementioned report. The General Audit Chamber shall send its advisory report to the Electoral Council. The Electoral Council shall ensure that the annual report and the financial statements are made available for perusal by the general public. Information on the political parties donation registers and their annual reports will be discussed in the 2015 Annual Report. 31

33 4.5. Observations and recommendations After its first year of operations, the Electoral Council would like to mention a number of its observations and concerns regarding the implementation of the National Ordinance on Registration and Finances of Political Parties. 1) It is evident, that most parties and politicians hardly have accurate knowledge of the contents of the National Ordinance on Registration and Finances of Political Parties and the role of the Electoral Council. 2) Despite this lack of knowledge, only a small number of parties and/or candidates visited or called the Electoral Council office for information regarding the execution of the National Ordinance. 3) As a result of the concerns of the Electoral Council about the timely compliance with the stipulations in of the National Ordinance on Registration and Finances of Political Parties, the Electoral Council on numerous occasions had to issue reminders and/or warnings to the political parties. It is hoped that in future the parties will comply with the stipulations laid down in the relevant National Ordinance. 4) It is noted that political parties hardly function according to their own articles of association. As a result, the structure and organization of the parties are not always as transparent and democratic as is stipulated in the party s articles of association. 5) Not all political parties have demonstrated the willingness to ask for membership contribution, which is an important characteristic of an association. It was observed that one party made an agreement with its candidates before the parliamentary elections to donate a percentage of their salary to the party, if elected to Parliament or appointed as a Minister. 6) Apparently, in several parties, decisions were taken on the candidates to appear on the list without following the procedures described in the articles of association, such as, consultation with the party boards and/or the party s nomination committees. 7) The Electoral Council received several complaints about the substantial costs involved with the establishment of a political party as an association. These costs which are considered by some new parties to be excessive and even undemocratic, include: the notary fees to incorporate the Association, which at times increased as a result of the necessary improvements; the fees to register the party at the Chamber of Commerce, and the costs of the required publication of the articles of association in the National Gazette, which amount to NAf. 100,-- per page. 32

34 8) The Electoral Council notes that the term tijdig (translated by in good time ) in Article 15, section 1, of the National Ordinance on Registration and Finances of Political Parties, stipulating that the articles of association of a political party must include the obligation to publish a political program in a timely manner before the elections, may lend itself to different interpretations. Some parties have interpreted in good time of the publication of their manifesto to mean the postulation date. On the other hand, other parties indicated that this would be too soon since they would like the input of the postulated candidates in the final draft of their party manifesto. The Electoral Council is of the opinion that later than 4 weeks prior to the elections cannot be considered in good time. 9) Article 33, section 2, of the National Ordinance on Registration and Finances of Political Parties stipulates that the period for the candidates to register donations received is the date of appointment by the party board until election date. Because it is not clear when a party appoints its candidates, the Electoral Council has adopted the postulation date as the start date of the register of donations. However, some candidates may be aware of their candidacy weeks or even months prior to that date and are inclined to submit donations received prior to postulation date. Regarding the final date to receive donations, it should be noted that candidates may have been promised a donation, which for one reason or the other was received after election date. These donations should also be recorded. 10) In this respect, the Electoral Council is of the opinion that the period for recording donations received by candidates should be extended to three (3) months before postulation date and two (2) months after election date in order to include all donations received. 11) The National Ordinance on Registration and Finances of Political Parties stipulates that candidates should register donations received, but makes no mention of expenditures made during the campaign, which possibly give a better insight into possible donations received for the campaign. 12) The Electoral Council notes that unlimited use of private funds by candidates may jeopardize all efforts to establish a political level playing field. Since the National Ordinance does not make mention of self-financing of candidates. 13) There is no provision in the National Ordinance on Registration and Finances of Political Parties regarding donors who insist to remain anonymous. 14) The Electoral Council regrets the seemingly lack of attention and cooperation for the important role the Electoral Council has to play in a transparent and democratic electoral process. To date, a Service Level Agreement with Government is not concluded, nor is the establishment of the National Decree 33

35 on the remuneration of Electoral Council members, which has unfortunately resulted in the resignation of one of the substitute members In conclusion The Electoral Council values the principles of transparency in its endeavors. However, it is still dealing with new experiences in the execution of its legal tasks and is therefore still looking for the most applicable manner of handling matters of transparency in the near future. Transparency is seen in the presentation of the donations as they have been received by the candidates of the respective participating political parties. The Electoral Council wants to stress that it sees great value in the manner in which it strives to achieve uniformity in the presentation of donations and the declaration by candidates and ministers as is mentioned in Article 53 of the National Ordinance on Registration and Finances of Political Parties. It is obvious, that the cooperation of the candidates and ministers involved is important. Finally, the Electoral Council is looking forward to having all outstanding matters with Government finalized for its proper functioning as soon as possible to put an end to the undesirable condition under which the Electoral Council has had to function. This would include the signing of a Service Level Agreement, the establishing of a National Decree for the remuneration of Electoral Council members, proper accommodation of the Electoral Council, and the speedy appointment of (substitute) Electoral Council members with financial expertise. 34

36 5. Appendices A. Draft Electoral Council budget 2014 B. Information session Electoral Council C. Application form registration political parties D. Declaration Article 53 Ministers E. List of candidates with total amounts of donations 35

37 A. Draft Electoral Council budget 2014 BUDGET 2014 Baten Te ontvangen dwangsommen PM Personeelskosten en vergoeding bestuursleden Remuneratie EC leden Voorzitter ANG 46, Leden/plv. voorzitter ANG 57, Plv. leden ANG 23, Presentiegelden plv. leden ANG 3, Secretariële Ondersteuning + PR man/vrouw (maximaal schaal 7, 10 maanden, incl. werkgeverslasten) ANG 66, Dienstverlening derden (bode + fin. Man) ANG 6, ANG 201, Service Level Agreement (SLA) PM Additionele uitgaven Repertorium PM Drukwerk (briefpapier, enveloppen. Visitekaartjes) ANG 1, Logo ANG Domeinnaam ANG Website/Onderhoud ANG 3, Naambord ANG 1, Representatie en vergaderingen ANG 3, Publicaties en voorlichting ANG 4, ANG 12, Subtotaal ANG 214, Onvoorzien 10% ANG 21, Totaal geraamde lasten ANG 235,