Central Bank urges for good policy of NV's

August 30, 2011 7:25 AM

The government should not interfere with the daily management of government companies but give managers and commissioners room to perform their tasks and responsibilities independently without government interference.

This was stated by Emsley Tromp, director of the Central Bank of Curaçao and St. Maarten in the report from the president with the annual report of 2010.

In his annual report, Tromp elaborated on how the government dealt with the government NV’s since it’s installation. Without going into specific cases, Tromp states that ‘the entrepreneurs trust and with that private investments are stimulated when the government observes the principles of good public governance and good corporate governance’. According to the Central Bank director, ‘recent experiences’ on Curaçao emphasize the importance of the government observing these principles and in particular regarding the government companies.

The recent experiences, which Tromp quotes but does not elaborate on, regard numerous confrontations between the government, members of the coalition and managements of government NV’s on the island. During the past months these confrontations with amongst others harbor company CPA, fuel distribution company Curoil, utility company Aqualectra and telecommunication company UTS attracted attention. In the president’s report, Tromp elaborates on the existing tensions and indicates how the government – in his vision – should deal with its government companies.

According to Tromp, a good governance of government companies is of crucial importance to maintain their positive contribution towards economic performances and competitive position of Curaçao. “For this reason the government is to behave as a well informed and involved shareholder. The government also needs to formulate a clear and consistent policy with regard to government companies so these companies are managed in a transparent and responsible manner with the necessary degree of expertise and effectiveness.”

According to the Central Bank director, the government is not to interfere with the daily management of government NV’s. In conformity with the basic principles of good corporate governance, the managers and commissioners are to perform their tasks and responsibilities without government interference, according to Tromp. “The Boards of Commissioners of these companies are to have the necessary authorities, skills and objectiveness to perform their work, which primarily consists of strategic counseling and supervision. Simultaneously, the government companies are to recognize the rights of all shareholders, to treat them equally and to offer them equal access to company information.”

In his report, Tromp also emphasizes the fact that government companies are to be transparent for their shareholders and the society in general.

28 August 2011