Published On: Fri, Dec 6th, 2013

Minister of Economic Development wants clarity on Korpodeko’s financial policy

korpodeko-1WILLEMSTAD – The Minister of Economic Development, Stanley Palm has asked the two other partners of the Development Bank, Korpodeko to help the Government get clarity on the financial management of the bank and specifically the process to grant loans.

The current financial situation is raising concern, according to Minister Palm. Korpodeko consists of three parts, namely the Government, union representatives, and the business sector. Thus, the Government does not have the authority to make a decision by themselves.

Minister Palm took note of the Korpodeko’s financial statements of the last years and these gave reason for concern. After a positive operating result in the years 2008 and 2009, a situation of losses arose in the years 2010, 2011 and 2012. In 2010, Korpodeko suffered a loss of 4.3 million guilders, in 2011 a loss of 5.6 million and in 2012, 5.9 million. This obviously does not show a sound financial management of the institution.

It has become clear now that Korpodeko has granted loans with any guarantee of payment. Korpodeko has also granted loans to companies which were later declared bankrupt causing the bank to lose all the funds involved.

Minister Palm, on various occasions during the last 6 months, has tried to receive information from the institution, but to no avail.

Last year the Government asked the public accountants’ bureau (SOAB) to investigate the financial management and policy at Korpodeko, however they did not receive any cooperation to do their research.

Minister Palm wants to make an urgent appeal to the two sectors, union and business sector, which have membership in Korpodeko’s board to help the Government get clarity on the financial situation of the institution. Also to help find out how the people’s money is being used. The Minister will ask SOAB to start another investigation into Korpodeko’s management.

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