"Voodoo Finance" and the State of Curaçao's Financial Quagmire

"Voodoo Finance" and the State of Curaçao's Financial Quagmire

May 11, 2024

warning regarding the annual accounts of the Country of Curaçao for the year 2022. A staggering total amount of approximately 1.2 billion and 521 million guilders is unaccounted for. The gravity of the situation lies in the concerns about legality and financial administration, particularly because many things are happening outside Parliament.

Some refer to this as 'voodoo finance,' a term that encapsulates the complexity and opacity of certain financial practices or products. 'Voodoo finance' suggests that these practices or products rely more on mystique and illusion rather than sound financial principles, leaving many perplexed and eager for clarity. In essence, "voodoo finance" refers to financial practices that may seem magical or mysterious but are often complex and potentially risky.

Voodoo finance has been discussed before. During the first government of Curaçao, financial policy was already designated as such, which led to a reprimand from the Kingdom Council of Ministers and a vote of disapproval.

Reflecting on this, I find solace in the simplicity of managing my mother's and grandmother's household budgets. (It's Mother's Day today, and here's a tribute to all mothers who are wholeheartedly mothers.) I'm convinced that my mother and grandmother would excel as Minister of Finance, as they understand the basic principles: don't spend more than you earn, don't incur debts, but save, pay your fixed expenses and save. These are lessons that can guide us through even the most complex financial situations.

In this context, it remains strange that not long ago, the minister forgave all tax debts from before 2017, totaling 5.7 billion guilders, let us say 3 billion in tax arrears, and all this was announced via a Facebook post. The minister has received compliments from the Financial Supervisory Board (Cft) several times, mainly because of increased compliance. However, no one talks about the draining of purchasing power from the economy.

Gelukkig heb ik meer verstand van huishouden (Fortunately, I understand household finances better).

Miguel Goede