~ Full-scale investigation launched. ~
PHILIPSBURG: The Economic Development Corporation of St. Maarten (EDC) appears to have nearly half a million guilders unaccounted for in just one year, according to reliable sources reaching SMN News. The EDC, a company mandated under the Ministry of Tourism, Economic Affairs, Transport, and Telecommunications (TEATT), has found itself at the center of financial scrutiny and allegations of mismanagement.
During the period of July 2023 to July 2024, the United Peoples Party appointed a new director who today finds himself under scrutiny since it appears that there has been gross mismanagement of the government-owned company funds.
The corporation, originally set up to attract new economic opportunities for St. Maarten, had mainly been dormant for some time but continued to generate income from lease payments. By July 2023, these accumulated funds reportedly amounted to nearly half a million guilders.
Shockingly, by July 2024, the EDC’s account held less than 10,000 guilders. This significant discrepancy has raised questions about the management and oversight of the funds. Notably, the EDC continued to receive lease income during this period, yet its financial reserves dwindled to a concerning amount so fast.
To make matters worse, the EDC has struggled to meet financial obligations, including failing to pay its secretary, who is now threatening legal action against the government and the corporation. Other unpaid bills have further highlighted the extent of the financial strain, leaving many to wonder how the funds were utilized during the tenure of the Managing Director.
Sources have revealed that an audit and investigation are underway to determine the whereabouts of the missing funds. If the funds are not returned, persons associated with EDC, including board members, could face serious consequences. The Ministry of TEATT and the EDC’s board, which was responsible for oversight, are both under scrutiny for their roles in this financial debacle. Sources close to the situation argue that the board failed to exercise adequate supervision over the director’s activities.
This revelation has sparked widespread concern about accountability and governance within the EDC. Calls for greater transparency and stricter oversight measures are growing as stakeholders, and the government awaits the findings of the ongoing investigation.
SMN News will continue to monitor this developing story and provide updates as more information becomes available.
