PHILIPSBURG - St. Maarten Housing Development Foundation (SMHDF) Director Henry Lynch has been placed on non-active duty as of December 12 by the foundation's supervisory board pending the outcome of "an independent forensic investigation".

 

This investigation was held by Government Accountant Bureau SOAB "into certain business and management activities" of SMHDF and of St. Maarten Housing Finance Foundation (SMHFF).

 

However, that investigation is now on hold due to the intervention of Minister of Housing, Spatial Planning, Environment and Infrastructure VROMI Maurice Lake. The minister also has issued some "erroneous" statements about the supervisory board's actions and the supervisory board wants Lake to correct those statements, according to a press statement issued on behalf of the supervisory board by Attorney Jairo Bloem.

 

Lynch's suspension and the subsequent investigation are a result of "alarming recent findings" related to the administrative management of the two foundations.

 

"SMHDF and SMHFF placed three members of its management team(s), whereunder the director Mr. Henry Lynch, on non-active duty, with pay until further notice," Bloem said in the press statement. This decision is, amongst other things, "premised on the severity of the preliminary findings" and the desire of SMHDF and SMHFF to enable a proper, thorough investigation, with all available documentation and without any disruption.

 

The assignment to SOAB was preceded by meetings between the supervisory board and "various informants," a study by the supervisory board of documents obtained, and meetings in the past between the supervisory board and Lake, a former supervisory board member. In those latter meetings, the "disturbing findings" were discussed with Lake, who is said to have "supported further investigation and decisive actions."

A resolution to commission the investigation and suspend certain members of the management team was taken in "a duly convened meeting with unanimous consent" of the supervisory board members.

The supervisory board and representatives of SOAB met to iron out the investigation's terms of reference and the terms were approved.

 

The SMHDF and SMHFF articles of incorporation grant the supervisory board the right to represent them in case of conflicting interests between management and SMHDF/SMHFF. There exist such conflicting interests now, according to Bloem.

 

It was with "great surprise and disappointment" that SMHDF and SMHFF learned on Sunday, December 14, that SOAB had decided to suspend temporarily the investigation it had started, as per request of Lake, in its e-mail dated Friday, December 12, that also was sent directly by Lake to Lynch, according to Bloem.

 

That e-mail "erroneously represents" that the decisions duly taken by the supervisory board "lacked judicial basis and in short constitutes a sole action of one 'rogue' supervisory board member."

 

By stating that the decisions taken by the supervisory board and thus SMHDF/SMHFF would be illegal, calling for a cancellation/suspension of the investigation, copying both SOAB and the suspended director, Lake has "incorrectly represented the facts, has without any legal cause, against the articles of incorporation of SMHDF/SMHFF, the corporate law and the – spirit of – good corporate governance, meddled in affairs beyond his – direct – scope of authority and has meddled with matters for which he, contrary to the Supervisory Board members, does not carry any legal responsibility."

 

The foundations want Lake to correct his "incorrect factual representations."

 

Bloem said, "It is one thing to want to have been consulted in also these last decisions for suspension and investigation beforehand and something entirely else to incorrectly state that those decisions are judicially flawed and to singlehandedly without previous consultation, endeavour to suspend an independent investigation."

 

The Daily Herald