Aruba stands at a crossroads where the path to sustainable growth and prosperity is increasingly influenced by the robustness of its corporate governance framework. The recent report by the Corporate Governance Committee sheds light on the critical state of governance across public and semi-public entities in Aruba, revealing insights that call for immediate action and a strategic approach to governance—a vision that PKF Aruba ardently supports.

Key Findings: A Snapshot of Corporate Governance in Aruba

The Committee's extensive research reveals a varied landscape of governance practices across different entities, with significant discrepancies in the application of the Corporate Governance Code (Code CBA). Notably:

• Application of the Code CBA varies widely, with 73.7% of entities reporting the use of a governance code or similar document, yet 40% lack essential governance components such as director profiles, meeting schedules, and risk management systems.
• Larger entities tend to comply better with the Code's components, whereas smaller entities face substantial challenges in its application.
• Entities under external supervision, like those overseen by the Central Bank of Aruba, exhibit more advanced governance practices than those without such oversight.
• On average, supervisory bodies and governing organs fail to comply with 47.2% and 32.4% of the Code's components, respectively.

These findings underscore a fragmented approach to governance, with significant gaps that could hinder Aruba's economic resilience and integrity.

The Path Forward: Embracing Corporate Governance for a Thriving Aruba

The disparities in governance practices underscore the urgent need for a unified and comprehensive approach to corporate governance in Aruba. Good governance is not just a regulatory checkbox but a foundational pillar for transparency, accountability, and ethical business conduct—elements that are paramount for attracting investment, fostering economic stability, and ensuring the sustainable development of our island nation.

PKF Aruba recognizes the pivotal role of robust governance in securing Aruba's future prosperity. Our commitment to excellence in governance practices aligns with our vision for a thriving, resilient Aruba where businesses and public entities operate with the highest standards of integrity and efficiency.

Partnering with PKF Aruba: Navigating the Governance Landscape

As Aruba endeavors to elevate its governance standards, the expertise and guidance of seasoned advisors become invaluable. PKF Aruba stands at the forefront of corporate governance advisory, equipped with global insights and local expertise to help entities navigate the complexities of governance compliance and strategic implementation.

We invite you to partner with us in this critical journey toward governance excellence. Together, we can craft bespoke governance frameworks that not only comply with the Code CBA but also align with your strategic objectives and the broader goals of Aruban society.

For a consultation and to explore how PKF Aruba can assist your entity in achieving governance excellence, please contact us. Let's work together to lay the foundations for a prosperous, sustainable future for Aruba.