PHILIPSBURG - Foundation for Secondary Education in the Windward Islands SVOBE (Stichting Voortgezet Onderwijs van de Bovenwindse Eilanden) , which provides secondary education to approximately 1,200 students at Milton Peters College and Sundial School, sounded the alarm Tuesday afternoon. SVOBE is in grave financial difficulties and is facing bankruptcy if the Ministry of Education does not provide NAf. 4.5 million in funding, it stated.

 

SVOBE took Minister of Education, Culture, Youth Affairs and Sport Patricia Lourens-Philip to Court in a LAR-administrative procedure, requesting a so-called temporary provision (tijdelijke voorziening), "because it is five minutes to 12," as SVOBE's attorney Camiel Koster put it.

 

SVOBE Executive Director Joseph Rogers said chances were high that personnel would not receive their salaries in their bank accounts by Friday if the foundation did not receive any financial assistance.

 

According to SVOBE, the annual government subsidies paid out to the foundation between 2010 and 2014, which were based on a lump sum per student, were structurally too low.

 

Koster said the 2010-2012 arrears amounted to more than NAf. 5.5 million and are an estimated NAf. 2.9 million for 2014.

The outstanding debts include wage tax payments and pension and health insurance premiums for personnel. SVOBE also has an outstanding utility bill of NAf. 127,000 with GEBE.

 

"Besides all this, the foundation also has to save money to be able to pay NAf. 800,000 in vacation allowances for staff. It has to purchase educational material to the tune of NAf. 685,000, whereas the acquisition of new teachers has been budgeted for NAf. 221,000.

 

"SVOBE closed a NAf. 650,000 loan with a commercial bank to be able to meet its financial obligations, which only added to the financial burden at an annual interest of NAf. 38,000," Koster said in explaining the foundation's acute financial problems.

SVOBE is of the opinion that the lump-sum system, which was introduced in 2010, is the cause of all hardship. The lump sum provides the school with an estimated fixed amount per student, without making any differentiation between students at VSBO or HAVO and VWO levels.

 

Not only salaries and education materials are to be paid from the lump-sum payments, but also expenses for security, cleaning, telephone bills and office supplies.

 

SVOBE claims government subsidies have been too low over the past three years and six months. "Bankruptcy is nearing. SVOBE is accumulating debts to the tune of NAf. 246,000 per month," its attorney claimed.

 

The foundation claims the remuneration for personnel alone is already NAf. 8 million too low, while no amounts for school maintenance, estimated at US $489,000, were included in the lump sum.

 

Government's lawyer in this procedure, attorney-at-law Richard Gibson Jr., said SVOBE had failed to provide any concrete evidence to sustain its claim that it needed NAf. 4.5 million immediately to keep the school open. "There is no proof of debts with any bank. No bank statements have been provided or an overview of monthly costs," Gibson said.

 

However, he said this case had having the Education Minister's attention and that a hearing on this matter would be arranged within two weeks.

 

He also said Foundation Government Accounts Bureau SOAB had been assigned to evaluate the lump-sum system and is to provide the Minister with legal advice.

 

Gibson said government failed to see why SVOBE had requested a temporary provision, as it had never submitted a request for a "financial injection" to date.

 

He also pointed out that SVOBE had been at fault in placing personnel and management in higher salary scales than legally required.

 

Gibson said the remuneration was paid out according to the existing policy and did not harm SVOBE disproportionately.

Government comptroller Georgegino Locadia said the lump-sum system was being evaluated where the actual number of students was concerned, "but up till now not on its cost-effectiveness."

 

The Ministry of Education does not have an emergency plan for schools with financial difficulties, it was stated. "The whole system is no good for anything and is totally wrong. The system does not reflect reality," said Rogers.

 

"We maintained a sane financial policy for our schools. Before the introduction of the lump-sum we hardly ever made any debts," he said.

 

He denied that SVOBE had not sounded the alarm bell. "In 2011, we raised our concerns for the first time with then-Minister Silveria Jacobs. We also consulted with the current minister for four times and sent her a letter with a formal request for financial assistance in August 2013."

 

Judge Katja Mans said it was undesirable to close down a school and send students home due to financial difficulties. She suggested drafting a quick-scan to ascertain the urgency of SVOBE's financial situation.

 

SVOBE is to provide the Education Ministry with payrolls, bank statements and with an overview of its income, including school fees and donations, as well as with a list of creditors, by Thursday at the latest.

 

Parties have the opportunity to reach an amicable solution until Tuesday, March 4, 12:00pm. The Judge will give her decision if parties do not reach an agreement.

 

(The Daily Herald)