Published On: Tue, Jun 13th, 2017

Update: Mismanagement at Aqualectra and Curaçao Refinery

Court houseWILLEMSTAD - On Tuesday, June 13, 2017, the Court of Justice confirmed that there was mismanagement in Aqualectra and Refineria di Kòrsou (Curaçao Refinery RDK) between October 10, 2010, and September 29, 2012.

At Aqualectra, the Court found that the general meeting of shareholders (government), the supervisory board and, to a certain extent, the management were responsible for various aspects of mismanagement.

At RdK, the Court made similar findings with regard to the Supervisory Board and the Management. The other complaints addressed to these companies have been rejected. Against Curoil, all complaints have been rejected.

Regarding Aqualectra, the Court has found that there was mismanagement in the following areas:

(i) Shortly after the Cabinet-Schotte took power in 2010, the Aqualectra management was suspended and subsequently fired;
(ii) the Supervisory Board took over the daily tasks of the management team;
(iii) Aqualectra transferred the shares it had in a company that indirectly owned the BOO plant, to the RdK without any type of payment and without any proper investigation about the value of those shares;
(iv) Aqualectra entered into an agreement for the supply of solar panels, although it failed to comply with the obligations imposed thereon;
(v) Aqualectra entered into other obligations in a careless manner.

With regard to RdK, the Court found that there was mismanagement in the following areas:

(i) The Supervisory Board took over the daily tasks of the management team;
(ii) The Supervisory Board made 17 million guilders available to school boards for free education;
(iii) The Supervisory Board violated RdK's accounting obligation and ignored financial control mechanisms;
(iv) RdK received the shares in a company that owned the BOO plant indirectly, from Aqualectra without any proper research about the value of those shares;
(v) RdK made huge expenses in connection with the BOO plant. These expenses have been lost. As a result, it has become very questionable whether RdK will be able to operate the refinery independently after 2019, if necessary.

The Court has refrained from identifying those who are responsible for the mismanagement. The Court also refused to take steps to recover the financial losses from Aqualectra and RdK from the liable persons. Aqualectra and RdK can try to do so without going to Court. They can also decide to refrain from this.

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