It turns out Government can make appointments to positions of confidence at its companies pending the screening by security service VDSM that is mandatory for such. At least that was the gist of a
ruling in the summary case brought by two members of GEBE’s Supervisory Board against the intended appointment of William Brooks as CEO (see related story).
Of course, the latter must be fully conditional until the screening is finished and a statement of no objection has been issued. The judge also said the shareholder is to take steps to limit the risk during that period.
The screening obligation was introduced because certain functions are simply so important and influential that society has to be assured of an adequate level of integrity among those who occupy them. However, once the Corporate Governance Council has approved a candidacy there is apparently no need to wait for the process to be completed.
Notably, the requirement is even being applied retroactively to executives already holding such posts. This led to a conflict, for example, with the director at Princess Juliana International Airport SXM.
It would be interesting to see whether the courts uphold that part should it ever come to a legal battle over the issue involving someone hired on a permanent basis rather than fixed contract before this particular rule went into effect. Does the result of a screening then weigh more heavily than an employment agreement made in good faith or will it depend on the reason for a negative advice?
That question might not be answered any time soon, but the verdict in the injunction was based partially on the expected outcome of a regular judicial procedure. All in all, the last word on this entire matter may not have been spoken quite just yet.
