Political Shakeup and Campaign Finance

The Mating Dance

This week saw a significant political development as the Prime Minister tendered the resignation of her entire cabinet. This dramatic move comes after a few days of political maneuvering between her party, the MEP, and its coalition partner, Raiz. Observing their back-and-forth felt like watching a delicate pre-mating dance, similar to those performed by species like the albatross or the greater flamingo, where intricate rituals precede the final commitment. In our case, the conclusion was a sudden dive into the election season—the most anticipated time for any politician. The season to be jolly, shake hands, and kiss strange babies.

The Motives

The real motives behind this cabinet resignation remain unclear. Political motives can be like the deep currents of our ocean—hidden beneath the surface, powerful yet invisible to the casual observer. Just as these currents shape the tides and weather, unseen political forces shape decisions and strategies, often in ways the public doesn’t immediately understand. We may see the waves, but the true drivers remain out of sight, moving in shadowy patterns that only reveal themselves over time, if ever.

Campaign Finance Law

I’ll leave the political belly-dancing to the politicians. Instead, let’s focus on something practical: the laws governing political parties and campaign financing, which might shed some light on the mechanics of the upcoming elections.

Understanding the Law on Political Parties

With elections just around the corner, understanding the rules governing political parties and campaign finance is crucial. The Landsverordening politieke partijen lays out these laws in detail, and recent amendments have introduced strict regulations on campaign financing. Though there wasn’t much fanfare when these changes were made, the regulations are clear.

General Provisions

A political party is defined as a legally registered group in Aruba that contributes to political thought, citizen engagement, and the selection of candidates for election. Only registered parties can participate in elections, and as of September 6th, 2024, several new parties joined over twenty existing ones, all vying for a spot on the ballot.

The Electoral Council

The Electoral Council functions independently of the government and oversees elections and the registration of political parties. It acts as the principal election body for parliamentary elections, ensuring that everything runs according to the law.

Registration of Political Parties

Political parties must register with the Electoral Council through a notarial deed of association. This deed outlines the party’s name, goals, and obligations. Without proper registration, parties cannot participate in the electoral process.

Financial Administration

This is where things get more interesting. Each political party is required to maintain a transparent and reliable financial administration, with a sequential invoicing system for every financial contribution. A public committee oversees the finances of parties and candidates, ensuring that they maintain accurate records of contributions, assets, liabilities, and other income. These financial documents must be kept for at least ten years, and an annual financial report must be submitted for review.

Donations to Political Parties and Candidates

Political donations are strictly regulated by law to ensure fairness and transparency. A donation is considered to be any money or goods given to a political party or candidate without receiving something of equal value in return. This includes direct contributions as well as those funneled through associated organizations, such as fundraising foundations tied to politicians.

The law limits how much an individual, business, or organization can donate. These restrictions are meant to prevent any one donor from having an outsized influence on the political process. All donations must be transparent, with no room for anonymity. Donors must be clearly identified, and if a donation exceeds the legal limit, it must be returned or transferred to the state’s treasury  if that’s not possible. I doubt some of our politicians would ever return a single penny.

This legal framework is in place to ensure that all financial contributions to political parties and candidates are legitimate and subject to public scrutiny.

Oversight and Enforcement

A special public committee is tasked with monitoring compliance with these financial rules. It has the power to inspect the financial records of parties and candidates and to impose fines for violations. This oversight helps ensure that the campaign finance laws are followed.

Donations From Foreign Entities

One key point often overlooked is that donations from foreign entities or individuals without legal residency in Aruba for at least five years are strictly prohibited. Foreign companies are also barred from making political contributions, ensuring the electoral process remains free from outside interference.

How the Law Defines Donations

The law takes a broad view of what constitutes a “donation.” It doesn’t just include money—goods and services provided to a party or candidate are also considered donations if they hold value. Even if a service is offered at a discount, the difference between the usual price and what was paid is treated as a donation.

Furthermore, any donation made to an individual or organization with the intention of benefiting a political party or candidate is considered a donation to that party or candidate. This provision ensures that all forms of financial support are subject to the same scrutiny and legal restrictions, preventing any loopholes.

No Public Donations Allowed

One of the key provisions of the law is the prohibition against political donations from entities in which the government has an interest. Political parties and candidates are explicitly forbidden from accepting donations from:

• Companies where the government holds a stake.
• Subsidiaries of such companies.
• Institutions that receive government subsidies.

Companies like Refineria di Aruba (RdA NV), WEB, ELMAR, SETAR, SERLIMAR, APFA, and other similar public institutions or foundations are legally barred from contributing to political campaigns. These entities are funded with public money, and their resources should not be used to influence the political landscape.

This regulation is vital to maintaining a fair and transparent political process, free from conflicts of interest that might arise if state-linked entities provided financial backing to political parties. It reminds those in leadership positions within these organizations to act within the bounds of the law and avoid even the appearance of impropriety.

As election season approaches, it’s important for all political players and candidates to understand and respect these legal boundaries fully. Compliance with these rules ensures that our democratic system remains transparent and free from the influence of entities tied to public funds.

Compliance for Political Parties and Candidates

Maintaining compliance with campaign finance laws is not optional—it’s a legal requirement. First, a party must be officially registered with the Electoral Council before it can participate in elections. This formalizes the party’s status and subjects it to all the rules laid out in the Landsverordening politieke partijen.

Once registered, political parties must maintain a clear and transparent financial administration. Every contribution, whether monetary or in-kind, must be properly recorded. This includes direct donations, other income, and any debts. Accurate bookkeeping is crucial because it provides a reliable picture of the party’s financial health, and failure to maintain it can lead to penalties.

The law also imposes strict limits on donations. Contributions over a certain threshold must be made through traceable methods like bank transfers or checks, ensuring full accountability. Cash donations above a certain amount are not allowed, and all contributions must be transparent—anonymous donations are strictly prohibited. If a donation violates these limits, it must be returned or transferred to a government account if returning it is not possible.

Lastly, financial transparency doesn’t end on election day. Political parties and candidates must submit an annual financial report detailing their financial activities for the previous year. This ensures

Closing Thoughts

As the election season heats up, I want to thank my loyal readers for your continued support. Your feedback, both online and in person, keeps me motivated during my early Sunday morning writing sessions, especially when accompanied by a good cup of Dominican coffee and my beloved Boston Terrier Tobio.

Remember, December 6 is fast approaching. When you cast your vote, do so thoughtfully. Don’t let yourself be swayed by the noise of the campaign—t-shirts, flags, rallies, and the temptation of free food and drink. Vote wisely; you deserve it, we deserve it.Until next time, visit my website at www.lincolngomez.com for more columns and podcasts. See you next week!