Accountant Hernandez dropped from Nivra-registry for 9 months

May 25, 2012 3:57 PM

WILLEMSTAD - Accountant Terry Hernandez will be dropped from the Nivra-registry for nine months: six months for the Goede case and three months for De Lannoy case. The Dutch disciplinary judge declared the complaints on the accountant’s report founded at the Auditor’s Office today.

The reports from Hernandez in question had led to dismissal for the director of the Curaçao Port Authorities (CPA), Marcelino ‘Chonky’ de Lannoy, and the rector of the University of the Netherlands Antilles (UNA) Miguel Goede.

Goede’s lawyer Karel Frielink stated in a press report that ‘Hernandez was severely punished’. De Lannoy complained that with performing the assignment Hernandez had acted against the principle of hearing both sides, of objectivity, expertise, meticulousness and professional behavior. The Auditor’s Office deemed the following complaints founded: Hernandez made the investigation a personal investigation into De Lannoy, thus deviating from the original assignment; De Lannoy was not heard on time or heard properly; Hernandez hadn’t substantiated propositions in the report; Hernandez had acted without written authorization by adding CPA/KTK subjects to the investigation; Hernandez’ report included factual inaccuracies, had drawn wrong conclusions and lacked a foundation; and Hernandez made too many suggestive remarks.”

One complaint was disallowed because it meant that Hernandez should’ve known the matter would receive considerable media attention thus causing permanent damage to De Lannoy as well as CPA and KTK.

In their decision, the Auditor’s Office concluded that Hernandez ‘hadn’t observed the principles of objectivity, expertise, meticulousness and professional behavior’ and that the report ‘largely lacks a proper foundation’. “The decision on imposing a disciplinary measure takes into consideration the nature and seriousness of the described violations of mentioned fundamental principles.”

Also in the case of Goede the Auditor’s Office stated that the accountant had acted against the demands ensuing from the fundamental principles of integrity, objectivity, expertise and meticulousness. “Hernandez should’ve realized that the findings in the report and the conclusion of the report could be damaging for plaintiff’s position.” Frielink emphasized that in the report on Goede, Hernandez ‘had wrongfully expressed very serious accusations that led to Goede’s dismissal as rector of the UNA’. The Auditor’s Office accuses Hernandez of not hearing Professor Doctor Roel in ‘t Veld during his investigation. “This was an important witness for Goede but Hernandez hadn’t deemed it necessary to include In ‘t Veld in the investigation.” The Auditor’s Office further rules that Hernandez’ serious accusation aimed at Goede (the presentation of false documents with the intention to withhold monies from the UNA) didn’t correspond with the fact that consensus ad idem had been reached on the assignment nor with the fact that the payment of the invoice from Goede Consultants occurred with approval from the then rector, said Frielink.

In his investigation into De Lannoy, Hernandez said he carried out the assignment in accordance with ‘Guideline 920’. The Auditor’s Office substantiated: “With the decision of the Nivra of May 16th 2007, further rules were given on control and other standards that became effective on July 1st 2007. Since then, therefore also before the report at issue dated January 18th 2011, standard NVCOS 4400 applies instead of mentioned guideline 920.”

This is followed by the explanation that based on this standard ‘an accountant only reports on actual findings in consideration of the agreed activities’. “As the report doesn’t provide any certainty, the users of the report are to judge the activities and findings of the accountant’s report”, according to the Nivra. Hernandez’ lawyer, who is also the company lawyer of CPA/KTK, previously stated – he was not reachable for comment today – that Hernandez’ audit report is not under debate and would continue to serve as basis for the many changes within CPA and KTK.

The decision of the Royal Netherlands Institute of Chartered Accountants (Nivra) took a long time in coming because the various cases were linked. De Lannoy’s case had already been discussed in September 2011 and that of Goede in January. The two retired CPA-directors, Augustin Diaz and Richard Lopez Ramirez lodged a joint complaint against the accountant. The outcome of this case is unclear as yet. The former directors weren’t available for comment today.

In the case of Miguel Goede against Terry Hernandez Goede was represented by mr. Karel Frielink of Spigthoff Attorneys at Law and Tax Advisers.

Read the judgment here

In the case of the director of the Curaçao Port Authorities (CPA), Marcelino ‘Chonky’ de Lannoy against Terry Hernandez de Lannoy was represented by Alexa Gratama, senior advisor at the law firm VanEps Kunneman VanDoorne.

Read the judgment here 

In the case of former directors of Curaçao Ports Authority Agustin Diaz and Richard Lopez Ramirez against Terry Hernandez Diaz and Lopez Ramirez were represented by mr. Gerard Spong (the Netherlands).

Read the judgment here.

Accountant Terry Hernandez was represented by attorney Bertie Braam of law firm braam & Pols.

Related articles:

- Terry Hernandez zwaar gestraft door Accountantskamer in zaak Miguel Goede

- Uitspraken Tuchtraad