Published On: Thu, Dec 27th, 2012

Accountants did not approve Aqualectra’s 2010 annual report

WILLEMSTAD – KPMG did not approve the 2010 annual report of the utility company Aqualectra. The accountants have shown on the different deficiencies e.g. the transfer of Aqualectra’s shares to BOO to zero. This had a serious impact on the company and it also put in doubt if Aqualectra can comply with its obligations.

This is according to a letter from KPMG accountants on Curacao to the management (Darick Jones is momentarily the only director) and to the Supervisory Board (with the controversial president Oswald van der Dijs appointed by the former Government headed by Gerrit Schotte).

An approved annual report is extremely crucial for Aqualectra since the utility company is negotiating with a bank consortium and other financial institutions for the financing of the “The Turnaround” of the company. For this turnaround is 150 million guilders (85 million dollars) of the circa 265 million guilders (151 million dollars) needed. This will help the company save 50 million guilders on fuel costs, while “doing nothing” can make it more expensive in maintenance seeing that the plant located at Mundu Nobo is severely antiquated.

Reason for the KPMG’s rejection is the financial situation and the liquidity position of the company to comply with its payment obligations in regards to the bonds, allowing the Central Bank of Curacao and Sint Maarten to decide to pay the outstanding principal amount of loans plus through bonds.

A second reason is the transfer of Aqualectra’s share in BOO to Curacao Refinery, while this would add 62 million guilders to Aqualectra’s account. This happened right after the new year 2011 by the shareholder. The management had to change the 62 million on the balance to zero per December 31, 2010.

These are enough arguments to reject the 2010 annual financial report. Aqualectra has not yet published the 2011 financial report.

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