SXMElections.com

PHILIPSBURG--Renovations to the Central Bank of Curaçao and St. Maarten building on W.J.A. Nisbeth Road are slated to resume with a new contractor in mid-August.

Central Bank President Emsley Tromp said on Thursday that the Bank "hoped to finalise a contractor by the end of this month."

The renovations were started in December by then-contractor Taliesin Construction. Work halted in April after the Bank terminated the contractor prior to completion.

The contractor has since taken the bank to court for damages and full payment. The case is expected to be called in August.

The total price tag for the renovation of the Central Bank building in St. Maarten is NAf. 5.6 million. Work started in December and was to span 16 months.

Taliesin Construction NV had placed a "mechanic's lien" on the building and adjoining properties owned by the Bank as a means of obtaining payment from the bank for the termination of its contract for the renovation of its building on W.J.A. Nisbeth Road.

The company is claiming NAf. 3.7 million from the Central Bank. Bank officials informed Taliesin Managing Director Carl Critchlow via letter on March 13 that the Bank would end the construction contract, because they said in the letter the Bank had received "signals" of possible malfeasance regarding Taliesin's possible involvement with integrity issues related to the now-former managing director of St. Maarten Housing Development Foundation (SMHDF).

The company was a subcontractor for a housing project carried out by SMHDF.

The Central Bank has offered to pay Taliesin only NAf. 520,000. That amount is significantly smaller than the remaining contract amount, thus the company's claim of NAf. 3.7 million was communicated to the bank. The claim includes damages to cover payment to employees. Some 14 workers are employed on the project, six subcontractors and Taliesin's in-house staff.

The Bank had carried out an investigation into the operations of St. Maarten Housing Finance Foundation, the financing arm of SMHDF, which falls under the Central Bank's supervision. From the undisclosed findings of that investigation the Central Bank opted to end its contract with Taliesin Construction NV for the renovation of its building in St. Maarten as of April 17.

Tromp had said that early termination of its construction contract with Taliesin was enshrined in its agreement with the company signed at the commencement of the contract in December 2014. That contract does not stipulate that termination by the bank has to be based on any specific reason.

Tromp could not divulge the findings of the investigation, based on confidentiality regulations, or state what actions would be taken by the Bank as the foundation's supervisor. However, he said the Bank had "received indications" from the investigation that there might be some issues that put the contractor's integrity into question.

Tromp refuted Taliesin Managing Director Carl Critchlow's claim about two outstanding invoices. The company is yet to submit its last two invoices for work carried out on the building prior to the termination of the contract. As the invoices never were submitted, the "mechanic's lien" was "not valid," Tromp said.