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Risk Auditor Jandroep explains Finance and Acquisitions inconsistency In SXM.

The Risk Auditor discovered a very recurring inconsistency regarding Finance and acquisitions of capital properties in Sint Maarten. The problem relies on mortgages provided to NV/BV companies; however, the property purchased becomes personally owned. This practice has been occurring unnoticed, and the result in the Tax environment can be devastating.
Describing the case
The Bank loans a company an amount over which interest is calculated, which is 100% realistically and legally the burden of the company NV or BV; however, the property may not be registered in the books of the NV. if the deed does not indicate the NV/BV as the title holder. This scenario demonstrates that the NV is committed to paying for a property for 20 or 30 years over which no ownership rights can be exercised. In this case, all payments to the bank must be registered as loans to the property holder for the payback condition.
If the property holder is a liability in the company NV/BV, an explanation can be given to pay off the liability; however, the liability validation of the property holder will come into question. How did he obtain the finance funds? Another aspect is that if the property holder becomes a receivable, there must be Shareholder meeting minutes to support the funds released to the property holder.
Taxation impact
The Tax Department, in such a case, can consider the amount paid in the monthly installment as salary and or Profit share distribution over which taxes are due.
In addition, this situation causes the company to be not entitled to any investment incentives and may not depreciate the asset. If the accountant in the exercise overlooked the condition, all the results of the financial statements would be retroactively misrepresented and would trigger penalties in the profit tax environment. In addition, interest charges for the loan cannot be declared in the income tax atmosphere.
This problem must be solved by Tax specialists due to the nature of the number of financial inconveniences and legal entanglements that are currently in blind corners.


Orco Bank Sponsors Local Student Delegation to Annual World Cultural Heritage Youth Symposium in Greece.

orocobank19042024PHILIPSBURG:--- Orco Bank Sint Maarten is proud to announce its sponsorship of a student delegation attending the Annual World Cultural Heritage Youth Symposium in Greece.
The St. Maarten Youth Council Association, in collaboration with the Sint Maarten UNESCO National Committee and the Methodist Agogic Centre Comprehensive Secondary Education, is sending a delegation of students accompanied by two teachers to represent Sint Maarten at the symposium.
The symposium, from April 17th to 20th, 2024, brings together young minds worldwide to explore and celebrate intangible cultural heritage. Orco Bank recognizes the importance of supporting youth development and cultural understanding and is delighted to contribute to this valuable initiative.
“At Orco Bank, we are committed to fostering a brighter future for our communities,” said Mrs. Judy King Richardson, Country Manager for Sint Maarten at Orco Bank. “Investing in our youth and their cultural education is paramount. We are thrilled to support this student’s participation in the World Cultural Heritage Youth Symposium and believe this experience will be instrumental in their personal growth and understanding of the world around them.”
For more information about Orco Bank, please visit their website at https://www.orcobank.com/. To stay abreast of daily posts and news, follow them on Facebook at https://www.facebook.com/OrcoBank or LinkedIn at https://www.linkedin.com/company/orco-bank/.

Successful and Safe Conduct of Carnival Jump-Up: Sint Maarten Police Force.

firearm19042024PHILIPSBURG:--- The Sint Maarten Police Force (KPSM) commends Sint Maarten's public for a successful and safe execution of the Carnival 2025 jump-opening held on Thursday night, April 18th.

The event, which drew enthusiastic participation from residents and visitors alike, proceeded smoothly, with no reported safety incidents during the parade. The efforts of KPSM officers/VKS and adequate planning contributed to the overall safe and secure parade.

However, following the conclusion of the jump-up after 11:00 PM, the KPSM took swift action in response to incidents outside the Festival Village. Two male individuals were arrested in connection with a physical altercation. Both suspects were detained overnight under the zero-tolerance protocol, questioned, and fined.

Additionally, later in the evening, officers apprehended a male suspect found in possession of a firearm. Preliminary investigations revealed that gunshots were heard near a bar outside the Carnival Village. Officers who were in the area promptly identified and arrested the individual seen with the firearm. He is currently in custody pending further investigation.

The KPSM underscores its unwavering commitment to ensuring public safety and maintaining law and order during festive occasions. We reiterate that illegal firearm possession will be met with swift and decisive action. Our officers remain vigilant and proactive in enforcing the law to safeguard our community.

We urge the public to cooperate with law enforcement authorities and report any suspicious activities or individuals immediately. Together, we can uphold the peace and security of Sint Maarten.

 

KPSM Press Release.

The Ministry of VROMI: One Lane Road Closure at Dollisson Drive, Cul-De-Sac Starting Next Week Tuesday.

dollisondrive19042024Cul-de-Sac:---  The Ministry of VROMI (Public Housing, Spatial Planning, Environment & Infrastructure) hereby notifies the public of the commencement of Road Resurfacing at Dollisson Drive, Cul-De-Sac. The work will begin with a One-Lane Road Closure on Tuesday, April 23rd, 2024, from 7 AM to 4 PM for approximately three (3) to four (4) weeks.

Moreover, work will be carried out alternately with a road width of 2.5 meters each time for the first 60 meters of Dollison Drive.

Parking will be available next to the road where possible for residents. After working hours until 7 a.m. the next morning, the road will be made accessible. Additional inconvenience may occur during and after concrete pouring, which means that immediate residents cannot be reached, except for emergencies.

Details of One Lane Road Closure:
Date and Time: Starting Tuesday, April 23rd, 2024, from 7 AM to 4 PM for three (3) to four (4) weeks.

Location: Dollisson Drive, Cul-de-Sac

Traffic Detour: One Lane Accessibility for the first 60 meters.

Please note that Windward Roads Construction B.V. will conduct the road works with the supply of concrete by St. Maarten Concrete.

Thank you to the public for their patience and cooperation as we continue with the “Concrete Hard Surfacing Side Roads Program 2023-2024”.

Ombudsman concludes Systemic Investigation into motor vehicle confiscation policy of the Police Force of Sint Maarten (KPSM).

PHILIPSBURG:--- Ombudsman Gwendolien Mossel has concluded the Systemic Investigation into the motor vehicle confiscation policy of KPSM. The Final Report (FR) was recently submitted to the Minister of Justice.

History
The Ombudsman received numerous complaints regarding KPSM confiscating motor vehicles, usually during traffic controls, for suspicion of the vehicle being stolen. Complainants alleged that vehicles remained in the custody of the police/public prosecutor (OM), sometimes for months, without proper explanation, even after it had been established that the vehicle was not stolen and the complainant was the rightful owner. There have also been complaints concerning lost or misplaced keys of confiscated vehicles as well as lost or (unjustly) destroyed and misplaced vehicles.

Bottlenecks and Challenges
The following bottlenecks and challenges have been identified:

Lack of written policy and procedures
There is an overall lack of written policies and procedures. This is not only pertaining to vehicle confiscation, but in general. This was also highlighted as a bottleneck in the Ombudsman’s investigation regarding KPSM’s towing policy. Documented policies, procedures and/or basic work instructions regarding vehicle seizures that can be made available to the public, and which KPSM can be held accountable for, are non-existent.

Lack of information provision / inadequate communication
There are inadequacies in KPSM’s /OM's general communication to the public. Ineffective communication leads to misunderstandings and disagreements and can frustrate and upset people. This is evident from complaints received by the Ombudsman. Basic information about the process, such as during which hours persons can visit the police station and who the contact persons who will be available to answer questions regarding vehicle seizures are, is not known.

Lack of financial, personnel, and material capacity
There is a chronic lack of financial, personnel, and material capacity across the judicial chain, KPSM included. The following is quoted from the Law Enforcement Council’s State of Law Enforcement Report (2022): ‘The necessary preconditions for the proper execution of tasks continue as a common thread throughout almost all organizations in 2022. The capacity issue(s) runs like a thread through almost all topics. Time and again, the capacity shortage and its negative effects emerge across the entire judicial chain’. The lack of financial capacity has manifested itself in several projects that would have substantially curtailed vehicle theft, namely the bill of sale and database projects. The bill of sale project was reportedly discontinued due to a lack of funds less than 6 weeks before implementation. In addition, while KPSM would like to introduce a designated window for confiscated goods, this is not feasible due to a shortage of personnel.

Lack of an appropriate storage facility
As a result of not having a storage location, KPSM has acknowledged that some goods remain at the KPSM premises awaiting criminal proceedings, resulting in space and safety issues. Other goods are stored in unsafe and unsuitable locations, resulting in liability risks. Although the Minister of Justice has expressed willingness to look into the availability of land so that the Court could build a storage site through its financial resources, this is an unlikely scenario due to the lack of resources and will not be realized in the short term.

Accidentally destroyed and lost goods and motor vehicles.
Pursuant to Article 142, paragraph 1, CPC-confiscated objects may not be auctioned or destroyed without authorization from the Prosecutor. The Ombudsman has, however, received complaints regarding seized items and motor vehicles that have been accidentally misplaced and even destroyed without the required authorization. It is unclear how these incidents could have occurred. This, therefore, points to not only inadequacies in the storage facility but, more so, the manner in which items are registered as well.

Lack of fair and timely compensation for accidentally destroyed and misplaced goods
The Ombudsman has observed that in the event of accidentally destroyed or misplaced goods, persons are not fairly nor timely compensated. In one case, complainant was waiting for more than two (2) years for his scooter to be returned after it had been confiscated. The scooter was accidentally destroyed by KPSM. Up to present, it is uncertain if complainant has been (fairly) compensated.

Delayed receipt of traffic (police) reports (‘proces-verbalen’)
Insurance companies have indicated to the Ombudsman that that there is a delay in the processing of traffic reports by KPSM, which unnecessarily delay the settling of claims.

Lack of cooperation with insurance companies in Marigot
KPSM has indicated that the communication and cooperation with the insurance companies in Marigot is challenging. The main offices of said insurance companies are located in Guadeloupe, and usually (they) take considerable time to respond to inquiries, which further delays the process. This points to a communication (language) and organizational challenge.

Motor Traffic Guarantee Fund (waarborgfonds motorverkeer) inactive
The Motor Traffic Guarantee Fund is available to anyone who has suffered damages due to a motor vehicle accident and cannot claim said damages by their own insurer. For example, if the perpetrator drove away, is not insured, or was driving a stolen motor vehicle. The motor traffic guarantee fund is also regulated in the national ordinance on motor vehicle liability insurance. This fund has not yet been established in Sint Maarten. As a result, there is presently no recourse for victims who have suffered damages and are unable to claim the damages from their insurer.
Conclusion
The Court is the custodian based on the law, however because of the present lack of storage facilities KPSM currently acts as the ‘holder’. As such, KPSM is usually the first point of contact for the general public. The prosecutor also has a role to play in decisions such as returning to the owner, auctioning, or destroying goods. KPSM/Prosecutor has no written policy and/or procedures regarding motor vehicle confiscation. Upon questioning by the Ombudsman for the same, a reference was made to the articles in the Criminal Procedural Code and the Confiscation Decree without any further explanation regarding the practical execution of these laws. As a result, there is inadequate communication with the general public, which leads to misunderstandings and frustration. KPSM has acknowledged that they face challenges with ensuring efficient and accurate communication to the public. Since the start of the investigation KPSM has taken swift action via the media in an attempt to correct some of these shortcomings, however a sustainable communication strategy and structural changes are needed. Affected persons were encouraged to visit the Great Bay Police Station at specific times during the week. Names of the responsible police officers and telephone extensions were also provided.

While these quick remedies are applauded by the Ombudsman, they cannot replace written, transparent, published policy/procedures, combined with a clear and easy breakdown of said policy, that can be made available to the public and to which KPSM/OM can be held accountable. According to the Enforcement Council’s State of Law Enforcement Report (2022), the lack of financial, personnel, and material capacity is the Achilles heel and the primary source of most of KPSM’s current challenges. However, the Ombudsman notes that cost-effective and common-sense solutions must be found in particular when dealing with the public.

Recommendations
Based on the facts and findings, the Ombudsman proposes the following recommendations.
In consideration of the absence of financial, personnel, and material capacity, the provided recommendations are cost-effective and common-sense solutions that require limited financial resources. This, however, does not negate the fact that a comprehensive long-term solution for vehicular theft (that continues to be rampant on the island) as previously envisioned by KPSM c.s. should be implemented.

1. Improve information provision/communication to the public
2. Prepare written policy for (motor vehicle) confiscation
3. Improved registration system/process
4. Fair and timely compensation for accidentally destroyed and misplaced goods
5. Improve cooperation with insurance companies in Marigot
6. Activate the Motor Traffic Guarantee Fund

The final report is available via download on the Ombudsman’s website, www.ombudsman.sx. To complement the report a short animation video has been produced. The film can be viewed on the Ombudsman’s Facebook page (Bureau Ombudsman Sint Maarten) or via the website (www.ombudsman.sx).


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