2025: Performance Audit on the Permitting Issuance Process

With an in-depth review of the Business License Process

2025 Final Performance audit of the permitting issuance process.pdf

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Why this audit was conducted

The permitting process is one of the most direct ways in which citizens and businesses interact with government. The Court of Audit examined how permits are issued in St. Eustatius, with detailed focus on business licensing , following public concern about unclear procedures and delays. Citizens had described the system as slow and opaque, with one resident noting that a license should take days, not months.

The audit reviewed the legal framework, mapped administrative responsibilities, conducted stakeholder interviews, and assessed a representative sample of business license files from 2024. The goal: to give the Island Council a clear picture of how the process operates today, and where practical improvements can be made.

What the data showed

0%

of sampled files met the 8-week legal deadline

100%

had complete application forms & formal decisions

22–38

annual applications received over past 5 years

46+

new business registrations in St. Eustatius (2025 est.)

Findings

Strengths and areas for improvement

• Committed staff & practical know-how

The Licensing Unit (VTH) demonstrates clear commitment and hands-on expertise. Files were consistently numbered, signed, and easily traceable: reflecting disciplined recordkeeping.

• Coordination with key partners

Existing collaboration with the Chamber of Commerce and Spatial Planning & Development provides relevant input to the decision-making process.

• One-stop shop opportunity

The Census Office one-stop shop is a timely opportunity to simplify intake and provide applicants with a clearer first point of contact.

• Statutory deadlines not being met

None of the 12 reviewed files were processed within the legally required 8-week timeframe. Delays cluster around the advisory phase from Spatial Planning & Development.

• No written internal procedures

The process operates on undocumented routines and individual experience. There are no standard checklists, internal deadlines, or escalation mechanisms.

• Automatic approvals not published

The law requires that licenses granted by operation of law (when the 8-week deadline passes) be published within two weeks. In practice, this rarely occurs.

What the Court of Audit recommends

For the Executive Council

• Create an internal policy to meet deadlines consistently

  Adopt a policy that translates the 8-week legal deadline into concrete internal working arrangements, including defined roles, internal timeframes for advice, escalation steps when advice is delayed, and a requirement to publish licenses granted by operation of law.

• Consider mandating routine decision-making to a senior official

  Investigate delegating the approval of straightforward business license applications to a designated senior official, while keeping refusals with the Executive Council. This could significantly reduce the 2-week cycle currently consumed in the decision phase.

• Clarify the added value of the Chamber of Commerce's advisory role

  The Chamber's checks largely duplicate information gathered at business registration. Review this advisory step and consider allowing a simplified response, such as a no-objection statement, based on existing registration data, to reduce duplication and speed up processing.

For the Directorate of ENI

• Strengthen governance, controls, and segregation of duties

  Document procedures formally: create a manual with standard completeness checklists, a list of required documents per business type, clear criteria for what constitutes a business plan, and consistent logging of key dates. Introduce a formal quality review step by the unit manager before files move forward. The officer who processes an application should not be the same person who approves it.

• Improve communication with applicants

  Introduce standard messages confirming receipt and completeness, periodic status updates at key process milestones, and a basic channel for inquiries and complaints. Use the existing cloud-based platform to log and track progress without significant additional investment.

For the permitting system as a whole

• Develop a general permitting policy framework

  Establish common minimum standards applicable across all permit types, covering completeness checks, interdepartmental advice timeframes, escalation procedures, registration requirements, and publication obligations.