Published On: Tue, Jan 20th, 2015

MPs advocate resignation CBCS Board during public meeting

ParliamentWILLEMSTAD – Various Members of Parliament are of the opinion that the Board of the Central Bank of Curaçao and Sint Maarten (CBCS) should resign. That became clear yesterday when the confidential investigation report made by PricewaterhouseCoopers (PwC) was discussed by parliament.

In the report, the policy of the bank was exposed. According to several MPs the bank's reputation has been tarnished and for this reason the entire board has to go, including the President, Emsley Tromp.

The leader of the MFK party, Gerrit Schotte asked the Minister of Finance, Dr. Jose Jardim what the government is doing about the situation in the Central Bank now that it is known that the PwC report has condemned the functioning of this financial institution.

MAN MP Charles Cooper believes that Tromp had to take the honor to himself and he should have resigned. Cooper wants to know whether the government will follow the recommendations indicated in the PwC report and especially if there will be an integrity test conducted on both the Executive Board and the Supervisory Board of the Central Bank.

“By maintaining the confidentiality of the report you will not act transparently. You are also preventing the truth about what is happening at the Central Bank to become public,” Schotte said during the public meeting in the parliament. Schotte indicates that the report states very clearly that CBCS has taken a lot of unnecessary risks with the bonds in favor of utility company Aqualectra and the St. Maarten Port Authority.

Schotte also suggests that Tromp lied. In 2011, Tromp tightened the money market in order not to jeopardize the foreign exchange reserve. CBCS did this by increasing the compulsory reserve of the commercial banks by 2 percent. But, says Schotte, Tromp did this with the goal to increase the money market with the bond in favor of the port of St. Maarten. According to Schotte, the CBCS has compromised the foreign exchange reserve by doing this.

“The main reason why Tromp did this is political. He bought the protection of the members of the Supervisory Board representing Sint Maarten,” Schotte stressed.

Schotte also pointed to the findings of the PwC report which indicate non-functioning within the Bank as: functioning of the internal audit departments and risk and compliance and acting contrary to their own monetary and investment policy.

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