st maarten news

Governance and emergency regulation Ennia

The Central Bank of Curaçao and Sint Maarten (CBCS) reacts sharply in a press statement to the statements of Farou Metry, chairman of the supervisory board of Ennia.

He wrote in a leaked letter that the Central Bank is not performing its task properly and is poorly communicating with the council.

Emergency arrangement
Ennia falls under an emergency arrangement and is governed by the CBCS. In order to be able to carry out its duties under the emergency regulation, the CBCS exercises the powers of both directors and supervisory directors under the law.

Metry believes that the restructuring of Ennia, as well as the costs thereof, should be better discussed with the supervisory board from the bank.

The CBCS says that communication on the implementation of the restructuring does not have to communicate with the supervisory board, in this case Faroe Metry, but with the judge who has pronounced the emergency regulation.

Regular consultations are held with him about the progress and costs of the restructuring.

According to the CBCS, the court is therefore familiar with the costs incurred and also expected in connection with the emergency regulation and has budgeted these as such.

In accordance with the legal provisions of the emergency regulation, the CBCS will also report to the Minister of Finance as soon as the emergency regulation is lifted.

Legal proceedings
The serious problems at Ennia have been caused by large-scale and unlawful withdrawals of funds from policyholders. The CBCS has found this to date after an in-depth investigation.

Based on this, legal proceedings were started in October in which the Iranian-American shareholder and billionaire Hushang Ansary and his colleagues are held liable and funds are claimed (back) in the interest of the policyholders.

Various investigations are still ongoing. the CBCS believes that other former officials will also be involved in legal proceedings. The procedures and the damages that can be obtained from them are intended to restore Ennia’s solvency, so that the insurance company can fully meet its obligations to policyholders even in the long term.

The Central Bank also says that litigation is necessary as long as the responsible officials who have penalized Ennia voluntarily make repayment of the disadvantage they have inflicted on Ennia or with which they have enriched themselves at the expense of Ennia.

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