The ENNIA insurance company debacle continues to dominate the news, with the Dutch Second Chamber of Parliament (see related story) agreeing to handle a special loan of some 600 million euros for Curaçao and St. Maarten before the November election recess. That is apparently needed to save some 30,000 pensions at risk due to a threat of insolvency.
Not everyone, including the Committee for Financial Supervision CFT, is happy with this plan, considering its impact on the two countries’ budgets. However, the residents in question would stand to lose 80% of their built-up retirement rights should nothing be done.
The Prosecutor’s Office also confirms in this edition that a criminal investigation into draining the company’s capital is underway following a complaint filed by the Central Bank of Curaçao and St. Maarten (CBCS). This, despite earlier suggestions that law enforcement lacked the capacity for such.
Meanwhile, there are unconfirmed reports of a possible different approach by the Finance Ministry in Willemstad. Since 3.5 million Netherlands Antillean guilders is needed monthly to pay out the pension benefits, three years could supposedly be covered with NAf. 126 million while already partly successful litigation for damages against Hushang Ansary and associates accused of milking the company’s funds is completed.
To what extent this offers a viable alternative remains unclear, but time is fast running out. For St. Maarten, the involvement of Mullet Bay as asset makes it an extra-sensitive matter.
What the property is worth depends on who you talk to. Ansary had valued it at US $460 million, while CBCS came with an appraisal of $50 million.
That’s obviously a big discrepancy, but there can be little doubt that it regards a prime location with huge potential for further tourism development. Keep in mind that requirements concerning public beach access and parking, current vendors and even the golf course can always be made part of any sale.
This column certainly does not aim to promote the latter, merely to paint a realistic picture. Fact remains that the land is already in private hands.
For example, years ago when a Japanese billionaire got involved in buying up the Empire State Building in New York a few reservations were expressed about foreign ownership of this iconic structure. However, stated a counterargument at the time, having it moved to Japan was hardy an option.
