RvC: The end is nigh for Aqualectra director Casperson

December 05, 2011 3:20 AM

The Board of Commissioners (RvC) of Integrated Utility Holding N.V. (IUH, parent company of Aqualectra) abandons the idea to dismiss Human Resource director Billy Pandt.

The RvC wrote this in a letter to Minister-President Gerrit Schotte. After all, Pandt will retire per December 31st. However, for CEO Anthon Casperson the end is nigh.On Friday, December 9th the shareholder (i.e. the government) will take a final decision on Casperson’s fate. The RvC persists in their recommendation to dismiss Casperson because they have supplementary grounds. However, according to Casperson, RvC’s conclusions are incorrect or placed in the wrong perspective. He states he can refute the critical points with verifiable documentation. As Soab, in their capacity as advisor Corporate Governance, already stated, the arguments from the RvC cannot in fairness be used as reasons for serious mismanagement and contravening the law and IUH’s articles of association to dismiss Casperson. Lawyer Thomas Aardenburg therefore states in his letter to Schotte that it certainly seems Schotte and his people are after the person and Casperson’s position in no uncertain manner without any sound grounds, whereby Casperson’s legal position and good name are injured in a flagrant way.
 
Up to and including 2009, the board has been able to bear their responsibility and gave account to the RvC and the meeting of shareholders in conformity with the articles of association and legislation. As from 2010, the government took certain decisions that seriously disadvantaged the company’s financial position, says Casperson. He refers to the transfer of the shares ‘for nothing’ to Refineria di Kòrsou, the rate reduction of 5 cents per KWh without sound underpinning, the meddling of the RvC in the daily management which contravenes the articles of association and the high consultants’ costs. In 2010, IUH presumably incurred a loss of 50 to 60 million guilders. In 2011, the company is heading for a loss exceeding 50 million guilders, says Casperson. “These policy actions can clearly be attributed to the government.”
However, the RvC has found supplementary grounds to dismiss Casperson. According to them, personnel were sent to Columbia without a sound reason. That appeared from an investigation, by order of the RvC. Large amounts had supposedly been paid to the Columbian company Coomeva M.P. S.A. due to administrative costs of sending employees and family members of (former) employees for medical treatment in Columbia. The company received a commission of 20 percent of the costs charged to the Utility Services Bureau Medical Expenses (USBZ) for medical treatments and other services in Columbia. USBZ is the organization that manages the medical costs of the Aqualectra personnel. On this point, the RvC particularly blames Casperson that as administrator of IUH and indirect administrator and commissioner of USBZ, he had approved payments to the Columbian company without any underlying signed contract. According to the RvC, this attests to carelessness. In addition, the RvC queries the relation held with Coomeva and the manner of compensation for apparently lending a helping hand. “Further investigation is to reveal the exact situation but the facts at hand lead the RvC to seriously blame Casperson for this situation,” the RvC wrote in their letter to Schotte.
Finally, Casperson had not acted firmly against the water leaks, which is also a question of mismanagement. Supervisor Bureau Telecommunication Post and Utilities (BTPU) had ordered an investigation into the water leak loss in September, recruiting the Dutch water management bureau Vitens Evides International. According to the report, ‘Investigation into Non-Revenue Water at Aqualectra’, it appears the IUH board is guilty of mismanagement regarding the commercial and technical losses on produced water (Non Revenue Water, NRW). The economic value of the NRW amounts to 22 million guilders per year. One may conclude that Aqualectra had not made enough effort and investments to actually reduce the Real Losses. However, this report was never presented to Casperson. Aqualectra has included a NRW of 20 percent as target.
This regards an arbitrary determined percentage; in general, this percentage applies for water companies with an average water rate, which is a factor 10 to 15 lower than that of Aqualectra. Internally, Aqualectra lacks the data to calculate a cost-benefit analysis to determine an economic responsible NRW-level. From the report, it further appears that reduction of the actual losses can be realized within two years at the most with a correct approach. A NRW-level below 10 percent is possible, according to the researchers. Despite this, the NRW at Aqualectra fluctuates around 30 percent. The RvC finds that unacceptable. The report also indicates that the suggested measures by Aqualectra to-date, are not the correct ones (there was no pressure management and smart-meters was not the solution). Aqualectra must draw up an integral approach. There is insufficient perception on daily activities in the network.
 
Pension
Director Pandt turned 60 this year. In conformity with IUH’s articles of association, he will step down as administrator per December 31st 2011. Legally, the agreement of order between IUH and Pandt will terminate on January 1st 2012. In view of the remaining short period until the end of his term of office and the agreement of order, the RvC believes it is not advisable to continue the dismissal procedure of Pandt and the involved costs.
Therefore, the RvC intends to notify Pandt that as from December 5th, being the first working day after the termination date of his dismissal, he is to use up all his accumulated holidays up to January 1st 2012. He is not allowed to enter the Aqualectra building. Before January 1st 2012, Pandt is to hand in all matters, which he handled for Aqualectra. Apart from Casperson and Pandt, financial director Dieudonné van der Veen was also dismissed on October 3rd for two months at the most. However, the future of Van der Veen at the utility company is unknown. Earlier on, Schotte said this was a special case. Van der Veen joined the IUH-board last year. If reactions remain forthcoming, Van der Veen will report for work on Monday, when the dismissal term expires.

(Source: National newspaper Amigoe)

2 December 2011