State Attorney: contract with Nustar not legally valid

The State Attorney, consulted by the Kingdom Govenment, is of the opinion that the contract signed between the Executive Council and Nustar is ot legally valid.

Oranjestad- The Attorney of the Dutch Government, the so-called State Attorney is of the opinion that the agreement signed by commissioners Charles Woodley and Derrick Simmons with the Oil terminal is not legally valid. The State Attorney also concludes that the agreement is in violation of applicable laws and regulations. At the same time the State Attorney concludes that it is still possible to bring the agreement into conformity herewith. The initiative to reach an agreement with Nustar, after all, deserves a good and quick outcome in the (economic) interest of the island territory.

According to a press release by the RCN, the State Attorney has come to this conclusion because a decree of the Executive Council is missing and the agreement was not signed by (acting) Island Governor Julian Woodley, or signed by his proxy. Another point is that the Island Council was not asked (in advance) for approval about the agreement made. There are also concerns when it comes to the legality where taxation is concerned. Finally, according to the opinion of the State Attorney, arrangements are made on the exercise of (regulatory) powers that the Public Entity St. Eustatius does not have. These agreements may therefore not be fulfilled and that brings a big (financial) risk for Public Entity St. Eustatius (having regard to the granted indemnity and guarantees).

The Minister of Interior and Kingdom Relations (BZK) says that given the great economic importance of the agreement between the Public Entity St. Eustatius and Nustar, he is willing to assist the Public Entity with advice and expertise to correct the detected legal flaws, both in terms of content and in terms of the administrative process.

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