Published On: Sun, Nov 24th, 2019

Central Bank counters complaints by Ennia’s supervisory board

CBCS Central Bank Head Offce in St. Maarten

PHILIPSBURG – The Central Bank of Curacao and St. Maarten (CBCS) is not happy with a letter Faroe Metry, president of the supervisory board of insurance company Ennia’s operating units, wrote. The Central Bank hardly gives any information to the supervisory board, Metry complained. He also wrote that the costs for restructuring Ennia have risen to 8 million guilders, while the court earlier had limited those expenditures to just 500,000. The Central Bank says that Metry’s letter contains many errors that damage the bank’s reputation.

In 2018 the court placed Ennia under emergency measures at the Central Bank’s request. That measure was necessary, the bank states in a press release, because Ennia was in serious trouble due to large-scale and unlawful withdrawals of funds from the insurance company.

“The emergency measure is a measure of last resort that is only imposed on banks and insurance companies that are in serious trouble,” the bank states. “To execute its tasks under the emergency measure the bank has, based on the law, assumed the authority of the managers and the supervisors.”

The Central Bank separated responsibility for Ennia’s operational activities from restructuring-related activities. The bank mandated managers and supervisors to perform tasks at Ennia’s operational units, taking restructuring activities upon itself.

The mandated functionaries – in management and in the supervisory board – act on behalf of the CBCS, the press statement explains. “The bank does not consult with these people, but with the judge that put the emergency measure in place. This judge is familiar with the expenditures made so far and with expected future expenditures.”

In October, the Central Bank started procedures against Ennia’s Iranian-American owner, Hushang Ansary and others in an attempt to reclaim money that belongs to the insurer’s policy holders. This procedure aims to restore Ennia’s solvability position to a level that will enable the company to meet its future obligations to its policy holders.

The Central Bank spoke with Metry after his letter became public, through an article in Antilliaans Dagblad. The bank made clear “that the letter contains many errors and that the supervisors apparently based their statements on the wrong information.” The bank and Metry both regret that the letter became public.

“The CBCS stays on course in executing its plan to restructure Ennia and to reclaim the funds that were withdrawn, in the interest of the policy holders. A team of CBCS specialists, attorneys and financial experts are working on it every day. It is important that this can be done in relative peace, whereby confidentially has to be guaranteed. CBCS will make initiating procedures and their outcome public. As soon as it is possible to say more about the restructuring, reports will be issued.”