The search at the home of Central Bank of Curaçao and St. Maarten (CBCS) President-Director Emsley Tromp on Wednesday (see related story) sent shockwaves throughout both communities. After all, it regards the head of the joint monetary authority and financial sector supervisor.
Moreover, the two islands share the Antillean guilder that CBCS is to protect, guard and defend. Although the national currency is firmly pegged
to the US dollar, the risk of devaluation with all possible consequences is not entirely unthinkable should deficits on the joint balance of payments rise to irresponsible levels and jeopardise the foreign exchange reserves.
To be sure, there is no indication whatsoever of such and CBCS has been taking appropriate measures to deal with the gap between imports and exports, like making commercial banks limit consumer credit. In fact, most would agree that despite friction between management and some members of the Supervisory Board since the constitutional reforms per 10-10-10, this essential institution over the years has contributed to a relatively stable fiscal picture of what used to be the Netherlands Antilles.
Nevertheless, Tromp’s functioning has not been without controversy. Some have questioned, for example, the process to approve bond issues on behalf of Port St. Maarten and Curaçao utility company Aqualectra.
It’s important to note that the current investigation regards the President-Director’s personal finances, not his job, although the latter may have been a relevant aspect. That he is suspected of fraud can in any case hardly be considered positive. People should still be careful not to jump to conclusions, because everyone is innocent until proven guilty. Moreover, Tromp is on record saying there’s an ongoing campaign of false allegations against him, partly orchestrated from the Netherlands.
Time will tell, but these worrisome developments surrounding CBCS are not doing either country much good.
