WILLEMSTAD – The Foundation for Supervision and Standardization of Government Entities (SBTNO) has issued strong criticism of a proposed amendment to the statutes of development agency Korpodeko, warning that the plan undermines principles of good governance.
At the center of the dispute is a proposal to grant the chairman of Korpodeko’s Supervisory Board an individual veto right. According to SBTNO, such a provision is incompatible with established corporate governance rules and should be removed from the statutes.
In its advice to the Minister of Economic Development, the watchdog argues that granting veto power to a single individual weakens the core of supervisory oversight. Under governance standards, supervisory board members are expected to make decisions collectively and share responsibility. Allowing one person to block decisions creates what SBTNO describes as a “dominant position” for the chairman and disrupts the balance within the board.
The organization further noted that a veto right conflicts with the principle of checks and balances, which is designed to distribute power and prevent concentration of authority. If a chairman can override majority decisions, other board members may remain formally accountable while having limited actual influence over decision-making. SBTNO considers this undesirable from a governance perspective.
The watchdog has therefore strongly advised the minister not to include the veto provision in the final version of the statutes. As an alternative, it pointed to a more common arrangement in which a chairman only has a casting vote in the event of a tie.
The issue arises as part of a broader revision of Korpodeko’s statutes. While some earlier recommendations from SBTNO have been incorporated, discussions are ongoing regarding other elements, including the potential establishment of an advisory board, on which the management of Korpodeko and the minister reportedly hold differing views.
The final decision on the revised statutes will be taken by the Council of Ministers, which is expected to review the updated proposal in the coming period.