November 25, 2019 curacaochronicle WILLEMSTAD - The Central Bank of Curaçao and Sint Maarten (CBCS) reacts sharply in a press release to the statements of Farou Metry, chairman of the supervisory board of the insurance company ENNIA. Metry wrote in a leaked letter that the Central Bank is not performing its task properly and is poorly communicating with the council.
ENNIA falls under an emergency regulation and is controlled by the CBCS. In order to be able to carry out its duties under the emergency regulation, the CBCS exercises the powers of both directors and supervisory directors under the law.
Metry believes that the restructuring of ENNIA, as well as the costs thereof, should be better discussed with the supervisory board from the bank.
The CBCS says that communication on the implementation of the restructuring does not have to be communicated with the supervisory board, in this case Faroe Metry, but with the judge who has pronounced the emergency regulation.
Regular consultations are held with the judge about the progress and costs of the restructuring.
According to the CBCS, the court is therefore familiar with the costs incurred, and also expected, in connection with the emergency regulation and has budgeted these as such.
In accordance with the legal provisions of the emergency regulation, the CBCS will also report to the Minister of Finance as soon as the emergency regulation is lifted.
The serious problems at ENNIA are caused by large-scale and unlawful withdrawals of policyholder funds. The CBCS has found this to date after an in-depth investigation.
Based on this, legal proceedings were started in October in which the Iranian-American shareholder and billionaire Hushang Ansary and his colleagues are held liable and funds are claimed (back) in the interest of the policyholders.
Various investigations are still ongoing. the CBCS believes that other former officials will also be involved in legal proceedings. The procedures and the compensation that can be obtained from them are intended to restore ENNIA's solvency, so that the insurance company can fully meet its obligations to policyholders in the long term.
The Central Bank also says that litigation is not necessary if the responsible officials who have taken funds out of ENNIA unlawfully return this money with which they have enriched themselves at the expense of the insurance company.