PHILIPSBURG: --- Concerns have been raised regarding Prime Minister Dr. Luc Mercelina’s alleged decision to grant preliminary approval for St. Maarten Carnival Development Foundation (SCDF) members to manage and operate Festival Village. Critics argue that this move may have sidestepped the rules laid out in the Corporate Governance Code, sparking questions over transparency and accountability.
According to reports, Prime Minister Dr. Mercelina, representing the Council of Ministers (COM), is accused of granting his approval “behind closed doors” to SCDF members without following established oversight protocols. This development comes even as the government works towards renewing the Stichting Overheidsgebouwen (SOG) board, the entity responsible for public building management. Opponents of this decision caution that ongoing governance reforms should not be an excuse to bypass the regulations to safeguard proper administrative conduct.
Recent Legal Actions Against SCDF
Adding to the controversy is the recent legal action SOG took against SCDF, underscoring the strained relationship between the two organizations. SOG recently took SCDF to court over unpaid fees and reportedly placed a lien on their accounts to recover the owed. These developments are believed to have influenced the Prime Minister’s controversial decision to grant SCDF management rights over Festival Village, further fueling concerns about governance and financial accountability.
Accountability issues within SCDF
Longstanding allegations surrounding SCDF's financial management practices further fuel the controversy. Sources indicate that certain foundation members have not provided financial statements to the government in recent years, a critical requirement for ensuring public funds are spent responsibly. These accusations have raised red flags about the organization’s internal controls and oversight of public funds.
One of the key allegations points to the hefty fees received by SCDF directors. Current reports suggest that unnamed directors of the foundation have been awarding themselves monthly payments of up to $10,000. Critics argue that such payments are not properly documented in the organization’s financial records, adding to suspicions of irregularities.
Lack of Transparency in Advertising Revenue
Another concern revolves around the lack of a clear policy governing advertising fees that SCDF charges businesses for commercial visibility during events. Critics hint that informal and opaque deals may be made regarding these fees, raising questions about how such revenue is being handled. The absence of a formalized policy is seen as fertile ground for potential abuse and a lack of accountability.
Despite the presence of a president, Mr. Edwardo Radjouki, there are claims that a single director effectively runs the organization. Critics say this undermines the foundation’s structure and raises additional questions about transparency and governance.
Calls for Clarity and Adherence to Governance Standards
While the government has not yet issued an official response to these allegations, observers are calling for stricter adherence to the principles of the Corporate Governance Code. They argue that decisions regarding the management of public assets, such as Festival Village, must be conducted transparently and in compliance with established regulations.
The concerns raised highlight the importance of accountability and open governance in ensuring public trust. Moving forward, many hope that any decisions made regarding the management of the Festival Village will address these issues and prioritize transparency, financial oversight, and adherence to the rule of law.
