A highlight of the recent working visit of a St. Maarten delegation to Holland, was a signing ceremony, where 30 percent of shares of the Dutch co-shareholder NPMNA, in the St. Maarten harbor project, were returned to the island territory of St. Maarten.

On photo: Head of Development Cooperation in the Dutch Ministry of Interior & Kingdom Rleations, M.J.H. Lamers, Dutch Minister of Kingdom Relations, Alexander Pechtold, Netherlands Antilles Minister Plenipotentiary in the Hague, Paul Comenencia, Managing Director of St. Maarten Harbor Holding Company, Mark Mingo, St. Maarten's Governor Franklyn Richards and Commissioner responsible for Port Affairs, Theo Heyliger. 

Great Bay — The Development Foundation Netherlands Antilles (SONA) and the island territory of St. Maarten will, on Wednesday, sign a one-year agreement, within the framework of the cooperation program for governmental renewal for St. Maarten.
 
The agreement has as objective the strengthening of the administrative and integrity process and entails the extension of a financial-economic advisor for the island territory of St. Maarten.
 
The Executive Council of St. Maarten, on August 31, 2005, had submitted a project proposal, requesting such.
 
SONA, which makes available Dutch development funds for the financing of projects, within the framework of realizing cooperation programs agreed upon between Holland and the Netherlands Antilles, recently approved the request for a financial-economic advisor, as support for the island government.
 
The project has been approved by USONA to the tune of 324.471 Dutch Antillean guilders. 

On Tuesday, the group is to meet with officials of the Ministry of Interior Affairs, before meeting with the Dutch Minister for Kingdom Relations, Alexander Pechtold on Wednesday. Scheduled to be discussed at that meeting is the ending of the participation of the NPMNA N.V. firm - a co-shareholder in the SMHHC operations. 

The Executive Council, on Tuesday of last week, mandated the governor of the island territory, as shareholder representative, to participate in discussions and take shareholders decisions of St. Maarten Harbor Facilities N.V. and the St. Maarten harbor Holding Facilities N.V.
The delegation is further scheduled to attend a presentation on projects of social housing and meet with broadcast and print media representatives.

The cabinet of the Minister Plenipotentiary in The Hague is providing assistance for the coordination of the visit.

The following is an interview conducted with Governor Franklyn Richards, shareholder representative for government- owned companies, in connection with a special congress on corporate governance, to be held on October 31, 2005

Corporate Governance in general deals with the management and control, responsibility and decision-making power, and accounting and supervision in government owned companies (the so called "NV's"). Integrity and transparency play an important role in this respect.

The articles of incorporation (also mentioned as "by-laws") describe the relationship between General Shareholders Meeting - Supervisory Board - Managing Director in a detailed manner and also about tasks and duties, responsibilities and competencies.

The guiding principles arew to be found in the Civil Code, Book 2 (Burgerlijk Wetboek, boek 2) and add to the articles of incoporation.

As of the date of his inaugural speech, delivered in September 1999, the Governor of Sint Maarten, Mr. Franklyn Richards has paid special attention to the issue of "Good Governance".

In 2000 he said: "Research has learnt that ‘Good Governance' in our global village of today implies managing public affairs in a transparent, accountable, participative and equitable manner showing due regard for human rights and the rule of law. "

In his Policy Plan 2004-2006 the Governor pleaded not only for a draft policy frame work for the government owned companies but also for guidelines / regulations for best practices and execution of the recommendations made in operational audits.

The government companies offer, in Mr. Richards' opinion, vital services to the public (such as telecommunications) and are also the core activities to control the island's economic pillars (cruise, cargo and aviation). For these companies to function properly, a minimum of conditions are necessary such as guidelines for corporate governance, a covenant for maintaining of the guidelines, an advisory body for advise to & control by the shareholder, restructuring of the organization, modernized articles of incorporation, a control cycle (budget, investment plan, financial audit and management letter of the accountant) and implementation of the recommendations made in the operational audits.      

Problems which must be tackled are guidelines of corporate governance which have not been followed,  a lack of transparency and accountability, the instruments in the General Meeting of Shareholders not used well, the implementation of the recommendations made in the operational audits not executed, the advices to the shareholder issued ad hoc instead of a multi disciplined character, and finally the company structures and company articles of incorporation, which  are outdated in comparison with the new civil law and jurisprudence.    

Solutions for the shareholder are, in Mr. Richards' opinion, a covenant between shareholder and companies to follow the guidelines for corporate governance, a control cycle, a preparatory & advisory body for the shareholder and a make up of the backlog in the annual accountants.

Why Corporate Governance: does it make sense?

Good Corporate Governance is in my opinion not only important for the business climate and for financing institutions but also as a shareholder to know that their companies are correct, accountable and transparently managed. The people of Sint Maarten must know that these companies are professionally, efficiently managed; this will in the end pay off in lower prices and / or better service. Finally good corporate governance leads to a better price-quality ratio since the government owned companies would be stimulated to operate more efficient and transparent.  

An example is that the General Shareholders Meeting needs for her steering and controlling tasks, not only a budget and investment plan, but also a financial audit report a certified audit letter of the accountant and a profile of the managing director(s) and supervisory board of directors.

Another example is that the Supervisory Board of Directors needs  her independent controlling and advising tasks; we need the above-mentioned instruments  along with an adequate management information system (m.i.s.).

Last example is where management needs to steer the company along with the aforementioned instruments, a business & management policy plan, a salary policy for personnel and a public tender regulation.

The action plan for the project of corporate governance is based on the decision of the Executive Council. It contains approval of guidelines / regulations for the best practice. 

On this moment the Governor's Cabinet is busy to formalize the guidelines / regulations for a best practice by a Covenant so that at the beginning of 2006 this can be ratified by The Executive Council as the authorized shareholder for this matter.  

Finally a Board for Corporate Governance is foreseen.

Can you describe the task of the coming Board for Corporate Governance?

Mr. Richards: The task is to advise and support the shareholder and shareholder on issues of corporate governance and all other issues related with government owned companies, such as having a strategic policy for all government owned companies.

The board consists of persons with knowledge in the field, for example, finance, economics, judicial affairs and business. Nominations will be based on profiles in the aforementioned areas.

The idea is that the shareholder and management of government owned companies would sign a covenant on corporate governance. This will help regulate the implementation of good corporate governance.