Minister Lake meddled with matters for which he, contrary to the Supervisory Board members, does not carry any legal responsibility; Attorney Jairo Bloem.
PHILIPSBURG:--- In light of alarming recent findings with regard to the –administrative- management of Sint Maarten Housing Development (SMHDF) and Sint Maarten Housing Finance Foundation (SMHFF), a foundation managed by SMHDF, the Supervisory Board of SMHDF commissioned an independent forensic investigation by SOAB into certain business and management activities of SMHDF and SMHFF, starting on December 12th, 2014. That assignment was preceded by:
- Meetings between the Supervisory Board and various informants;
- Study by the Supervisory Board of documents obtained;
- Meetings in the past between the Supervisory Board and the Honorable Minister of VROMI, Mr. M. Lake, in which the disturbing findings were discussed and wherein latter who also functioned as a Supervisory Board member in the past, supported further investigation and decisive actions;
- a resolution taken in a duly convened meeting with unanimous consent of the Supervisory Board Members to commission the investigation and suspend certain members of the management team;
- Meeting between the Supervisory Board and representatives of the SOAB, wherein the terms of reference of the to be conducted investigation were discussed and approved, and the assignment was formally concluded by SMHDF and SOAB.
The articles of incorporation of SMHDF and SMHFF grant the Supervisory Board the right to represent them in case of conflicting interests between Management and SMHDF/SMHFF. There presently exist such conflicting interests.
SMHDF and SMHFF placed three members of its Management team(s), whereunder the director Mr. Henry Lynch, on non-active duty, with pay, as per December 12th, 2014, until further notice. This decision is amongst others premised on the severity of the preliminary findings and the desire of SMHDF and SMHFF to enable a proper, thorough investigation, with all available documentation and without any disruption.
It is both with great surprise and disappointment that SMHDF/SMHFF learned on Sunday, December 14th, 2014 that SOAB decided to –temporally- suspend the investigation it started, as per request of the honorable minister M. Lake in its e-mail dated Friday, December 12th, 2014 that was nota bene also sent directly by the honorable Minister Lake to Mr. Henry Lynch.
That e-mail erroneously represents that the decisions duly taken by the Supervisory Board lack judicial basis and in short constitutes a sole action of one "rogue" Supervisory Board member. By stating that the decisions taken by the Supervisory Board and thus SMHDF/SMHFF would be illegal, calling for a cancellation/suspension of the investigation, copying both the SOAB and the suspended director Mr. Henry Lynch in the e-mail correspondence, the honorable Minister Lake:
(i) incorrectly represented the facts;
(ii) has without any legal cause, against the articles of incorporation of SMHDF/SMHFF, the corporate law and the -spirit of- the corporate governance good, meddled in affairs beyond his –direct- scope of authority;
(iii) meddled with matters for which he, contrary to the Supervisory Board members, does not carry any legal responsibility;
SMHDF/SMHFF finds that it would honor the honorable Minister M. Lake to correct his incorrect factual representations. It is one thing to want to have been consulted in also these last decisions for suspension and investigation beforehand and something entirely else to incorrectly state that those decisions are judicially flawed and to singlehandedly without previous consultation, endeavor to suspend an independent investigation.
A Supervisory Board Members was nota bene threatened same day and had to even suffer a direct attempt to assassinate him in his backyard at his home same evening. It is only by the grace of god that he is still alive after the handgun of the culprit trying to shoot him on a distance of 4-6 feet jammed three (3) successive times.
During the course of the past weekend 4 candidates for the 3 vacant positions within SMHDF withdrew their candidacy, for –in short- fear of their lives. The SOAB also expressed concern to SMHDF/SMHFF for not being able to guarantee the safety of its employees.
SMHDF/SMHFF remains undeterred in its resolve to have matters properly uninvestigated by a professional independent forensic auditor. To that extent following the unilateral suspension-decision of SOAB that was remarkably also sent directly by SOAB to Mr. H. Lynch, other accounting firms on Sint Maarten and former Netherlands Antilles are being approached. If it is not possible to retain the services of an independent professional body in the Dutch Caribbean, suitable parties will be approached in the Netherlands.
SMHDF/SMHHFF laments that the consequence of the described events is that the investigation might now take somewhat longer than anticipated. The suspensions given were premised on (i) the severity of the preliminary findings, (ii) the need to safeguard the available data and (iii) facilitate an appropriate investigation. All these interests still prevail and the suspensions will therefore be maintained.
This announcement as such also serves to inform the general public that Mr. Lynch is presently and till further notice NOT entitled to legally represent SMHDF and SMHFF.
The public will be informed within short about the appointment of –a- new ad-interim director(s) for SMHDF and SMHFF for, in any case, the duration of the investigation.
Press Release by Attorney at Law Jairo Bloem
