How Desperate is the Aruban Government for Money? Aruban Government attaches Marriott Sales Proceeds

Think the island of Aruba and the government is not desperate for revenue? I guess this can be added to the many reason to do business in Aruba and that “ideal market for investment” that was floated. According to Amigoe, the Aruban government has requested that a “Court of First Instance” be attached to the proceeds of the recent Marriott sale. We will do as we please, even if we do not have the documents. Why does this story sound so familiar?

The buildings were sold for 237 million dollars last week to a Caribbean investor in real estate.  The petition is dated November 24th, but has been submitted before that date, because it mentions the urgent reason for the sale of the buildings.

Of course there are many details in such deal and disputed opinions, comments and facts. However, the following comment from Aruban Prime Minister Nelson Oduber rings so loud and so common as what we have all seen from Aruban officials during the past 18 months. Trust me, I am telling the truth. Conveniently they do not have the necessary documents, they vanished. Yet, people are supposed to take them at their word of the ones they do have that benefit their position.

These proceeds are for the Country of Aruba, after the Netherlands is paid in connection with the loan furnished at that time.”  Oduber admits that the government does no longer have all the documentation concerning the loan.  But from some other documents that he has, he concludes that only Aruba is entitle to the proceeds.

It always seems to be the same MO, follow the money. Aruba, being in a situation of lowered tax revenues from a declining tourism … this was an easy money grab.

In the petition is stated that there is a dispute between the Aruban and Dutch government about the division of the proceeds.  The shares of the owners of the Marriott hotel, Plant NV are in hands of the Dutch Participation company for the Neth.Antilles (NPMNA) that is being managed by the Dutch Investment Bank.  Aruba says that the NPMNA has only received the shares temporarily, as guaranty for a Dutch loan of 55 million dollars. 

At that time, the government was in urgent need of money due to unfinished hotel constructions and hotel guarantees that were concluded in the eighties and had asked the Netherlands for financial support in accordance with the Charter for the Kingdom of the Netherlands.  The then minister for Aruban and Antillean Affairs Ernst Hirsch Ballin (CDA) loaned Aruba 55 million dollars via NPMNA under the condition that the shares are placed with NPMNA.    This is the reason for the dispute now.

Read the full story from Amigoe; November 29, 2006: Government attaches Marriott’s proceeds

The Aruban government has attached the proceeds from sale of some of the buildings of the Marriott hotel (first complex on the left).

ORANJESTAD – From documents that Amigoe has received it appears that Aruba has requested the Court of First Instance to attach the proceeds from sale of the buildings in which the Aruba Marriott Resort & Stellaris Casino is established.  This is an amount of 420 million florins. 

The buildings were sold for 237 million dollars last week to a Caribbean investor in real estate.  The petition is dated November 24th, but has been submitted before that date, because it mentions the urgent reason for the sale of the buildings.

In the petition is stated that there is a dispute between the Aruban and Dutch government about the division of the proceeds.  The shares of the owners of the Marriott hotel, Plant NV are in hands of the Dutch Participation company for the Neth.Antilles (NPMNA) that is being managed by the Dutch Investment Bank.  Aruba says that the NPMNA has only received the shares temporarily, as guaranty for a Dutch loan of 55 million dollars. 

At that time, the government was in urgent need of money due to unfinished hotel constructions and hotel guarantees that were concluded in the eighties and had asked the Netherlands for financial support in accordance with the Charter for the Kingdom of the Netherlands.  The then minister for Aruban and Antillean Affairs Ernst Hirsch Ballin (CDA) loaned Aruba 55 million dollars via NPMNA under the condition that the shares are placed with NPMNA.    This is the reason for the dispute now. 

SHARES

Prime Minister Nelson Oduber (MEP) has sent a letter to the Dutch minister of Kingdom Relations Atzo Nicolaà ¯ (VVD) on October 27th.

In that letter he states that NPMNA does not have any right on the proceeds of the sale of the Marriott buildings.  “These proceeds are for the Country of Aruba, after the Netherlands is paid in connection with the loan furnished at that time.”  Oduber admits that the government does no longer have all the documentation concerning the loan.  But from some other documents that he has, he concludes that only Aruba is entitle to the proceeds.  His letter mentions that the shares of Plant Hotel NV were first placed with Oranjestad Property Management (OPM).

After the loan, the shares of OPM would be divided between NPMNA and AIB.  However, upon request of the Netherlands, the shares for AIB were held over permanently.  That’s the reason why NPMNA remained on paper the only shareholder of OPM.  The shares of Plant NV were transferred to NPMNA in 1993 and 2000.  NPMNA became the shareholder of the Marriott buildings. 

Temporarily though, says Oduber, because the minute Aruba pays off the loan and interest, the shares have to go back to the Country of Aruba.  “NPMNA can be considered the trustee of the Country of Aruba.  Aruba is economically the owner of these shares”, says Oduber. Besides, Aruba has already paid of a great part of the 55-million dollars loan.