Credit Union refers parliament to curator

POSTED: 02/9/11 1:06 AM

St. Maarten – The leadership of the Christian Kingdom Cooperative (CKC) has deferred answering questions on the credit union’s bankruptcy to the court appointed curator Jeroen Veen. This was communicated by phone on Monday after they did not show up for the 3:00 p.m. start of a meeting of the Central Committee of Parliament and the 1st Vice President of Parliament Petrus Leroy De Weever, who was chairing the meeting, had the Secretary General Franklin Hanze contact them during a 30 minute recess.
Faction leader of the United People’s (UP) Party Romain Laville called the decision of the CKC leadership not to attend unfortunate and irresponsible as there were investors who were seeking clarity over what would happen to their investment.
“You have people who have lost their money and there is no explanation,” Laville said.
The faction leader of the Democratic Party Roy Marlin agreed somewhat saying that at least a written response should have been sent to indicate why they could not attend. He used the example of the lawyer and representatives of the management company of Pelican attending a recent meeting of Parliament to discuss the situation there.
De Weever, in his capacity as Chairman, replied that the difference is that the bankruptcy at CKC is now before the courts and that makes the matter sensitive. He also said that there had been no written communication from the CKC leadership on not attending the meeting, but the reasoning for not attending had been duly noted.
“The managing directors have no authority to speak and there is sensitiveness to the situation. So sensitive that even the Central Bank wants to refrain from commenting,” De Weever said.
Faction Leader of the National Alliance William Marlin said he found the comments made by the UP faction leader unfortunate and said if members of parliament had been up to date on the situation the “fiasco” of the credit union’s leadership not attending could have been avoided.
“The opening statement of the chair should have sufficed, but to basically open a discussion on the nonattendance being disrespectful is not the way we should go. We should put this matter to rest until the curator can come to Parliament and then we can go forward on this issue,” Marlin said.
De Weever’s reply was to announce that Laville’s comments will be stricken from the official record.
Depositor’s Insurance
A key issue with the CKC is the matter of depositors insurance. In order to ensure that the 2, 308 depositors will get their money back the credit union has filed a counterclaim against the Central Bank based on the fact that the regulator never finalized depositors insurance. This action is mandated in Section 39 of the National Ordinance on the Supervision of Banking and Credit Institutions, 1994, with the Central Bank being the first to engage the financial institution within a time limit set by the Minister. If no agreement can be reached the Minister becomes responsible.
Tromp told Parliament Monday that the insurance scheme still has not been completed. The matter stalled because of considerations over the premium that would have to be paid by the institutions and would end up being passed on to the consumer. That has now seemingly been resolved with an agreement between the Central Bank of Curacao and St. Maarten, the Central Bank of Aruba and the Central Bank of the Netherlands.
“It could be a few weeks or months before it is finished,” Tromp said.
Questions in Parliament
UP faction member Jules James was able to get replies on several of his questions including that the silent trusteeship for the CKC began in mid-2006 and that quarterly reports that the credit union was supposed to file were not submitted. The Central Bank’s Director of Supervision Shelwyn Salesia was “unable to say at this moment” whether or not the CKC had maintained the required solvency ratio.

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Comments (1)


  1. Thurman says:

    I was reading the article above but i have not yet gotten a straight foward answer. What are the reasons the CKC closed down and why

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