WILLEMSTAD – The Curaçao government's position as a major creditor in the bankruptcy of the former Sint Elisabeth Hospital (SEHOS) has raised serious questions following its decision to spend XCG 9 million purchasing part of the hospital's former real estate.
The government reportedly holds an outstanding claim of nearly XCG 35 million against the bankrupt hospital organization. Nevertheless, it participated in a property transaction earlier this month that resulted in the government and CMC Vastgoed jointly paying XCG 13 million for portions of the former hospital complex.
MAN-PIN parliamentary leader Giselle Mc William is demanding an explanation from Minister Charles Cooper about how the government handled its financial interests during the bankruptcy proceedings and subsequent property transactions.
Cooper is scheduled to answer fourteen parliamentary questions during a public session on Thursday, October 29.
One of the most significant questions concerns the government's outstanding claim against SEHOS.
Mc William wants to know how much of the XCG 10 million received by the bankruptcy curator from the original property sale has been paid, or is expected to be paid, to the government as a creditor.
The former hospital complex was sold by the curator to Otrabanda Village on June 30 for XCG 10 million. Approximately three months later, the government purchased portions of the property for XCG 9 million, while CMC Vastgoed paid another XCG 4 million.
This sequence of transactions has prompted questions about whether the government could have used its position as a creditor to acquire the property under more favorable financial conditions.
Mc William specifically wants to know why the government did not offset its outstanding claim against the real estate instead of paying millions to purchase part of the property after it had already been transferred to a private company.
However, whether such an arrangement would have been legally possible remains uncertain. Bankruptcy proceedings are governed by rules concerning the distribution of assets and the rights of creditors, and the government's claim does not automatically entitle it to ownership of the bankrupt institution's property.
The legal position of other creditors and the conditions attached to the bankruptcy settlement may also have influenced the options available to the government.
The financial implications could be substantial. Depending on how much the government ultimately recovers from its outstanding claim, the transaction may have consequences beyond the XCG 9 million purchase price.
Mc William is seeking a clear accounting of the government's financial position, including the amount it expects to recover from the bankruptcy estate and the reasoning behind the decision to purchase the property.
The answers could help establish whether the government adequately protected public funds while pursuing its interest in the former hospital complex.
The upcoming parliamentary session is therefore expected to focus not only on the purchase itself but also on the broader question of how the government manages its financial exposure in the SEHOS bankruptcy.