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Curaçao Government Collapses Over Dispute on Tax Debt Forgiveness

by | Aug 22, 2024

The government of Curaçao has fallen after a major dispute erupted between the coalition parties, the Movement for the Future of Curaçao (MFK) and the National People’s Party (PNP). The conflict began when two PNP parliamentarians, Sheldry Osepa and Gwendell Marcelina, publicly criticized the MFK’s Finance Minister, Javier Silvania, over his decision to forgive significant overdue tax debts. Osepa and Marcelina questioned the legitimacy of this move, labeling Silvania and his party as untrustworthy. This public critique deepened the rift within the coalition.

In response to the accusations, the MFK announced that they could no longer work with the two PNP parliamentarians. The MFK formally communicated this stance to their coalition partner, expressing their unwillingness to collaborate with Osepa and Marcelina moving forward. This refusal to work together effectively paralyzed the coalition’s functionality, prompting the PNP to end the partnership altogether.

As a result, the three PNP ministers tendered their resignations to the governor on Wednesday. Ruthwilda Larmonie-Cecilia, the PNP leader and Deputy Prime Minister, stated in a press briefing that the party was left with no other choice but to withdraw from the coalition. She emphasized that the decision was forced upon them due to the irreparable breakdown in trust and cooperation within the coalition.

The collapse of the government comes at a critical time, with the next elections on the island scheduled for March 2025. In the interim, the MFK is scrambling to form a new coalition to maintain its hold on power. The party is currently in discussions with independent parliamentarian Zita Jesus-Leito and the one-person faction KEM. If these talks are successful, the MFK could secure a fragile majority of 11 out of 21 seats in the Curaçao Parliament, allowing them to govern until the next election.

The situation has thrown Curaçao’s political landscape into uncertainty, with the potential new coalition likely to face significant challenges in maintaining stability. The government’s fall highlights the deep divisions within Curaçao’s political system, particularly regarding critical issues like financial management and accountability, which are likely to be central themes in the upcoming elections.

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