To the public Monómeros Colombo Venezolanos S.A. responsibly and transparently allows itself to reject the complaints issued on April 13th, 2020 by Senator José David Name Cardozo, considering them unfounded and with serious information gaps.
The company ratifies to the whole country that it is working in a responsible and committed way with the Colombian agriculture and industry, providing more than 1.100.000 tons of fertilizers per year, attending to all the norms and requirements in full harmony with allies, clients, regulating entities, government and all sectors of society.
Since April 11th last year, the Board of Directors appointed by President (E) Juan Guaidó, took control of Monómeros with the full support of the Government of Colombia and the Legitimate Government of Venezuela and began a process of stabilization and recovery after a 2018 and early 2019, in which it was strongly hit by mismanagement of the previous administration, which obeyed the interests of the Regime in Venezuela, and that led to the sanctions imposed by the U.S. government to Nicolas Maduro’s regime.
This situation, added to the looting of the previous administration that responded to the regime, caused a great weakening of the reputation, solidity and cash flow of the company, putting at risk the continuity of the business. Examples of this were the dividends of USD $20 million decreed in 2018, despite registering a loss for that same value, aircraft rental contracts that implied a cost of USD $3.8 million per year, cash flow of less than USD $100,000, the concentration of operation, logistics and maintenance contracts in a single local economic group and overreaching in management functions, which have already been fully exposed to public opinion and the competent authorities.
As of April 2019, irregularities have been detected and progressively resolved. For example: the three senior managers appointed by the regime were removed from their posts, new guidelines were issued for recruitment processes based on transparency, administrative practices were applied in line with global models of good corporate governance and contracts contrary to the genuine interests of the company were terminated.
The recognition of the advances in governance and transparency is reflected in the lifting of the control exercised by the Superintendency of Corporations of Colombia over Monómeros on February 11th, 2020, after overcoming all the administrative, financial and legal reasons that led to its submission in 2019. On the other hand, the Department of the Treasury ratified its confidence in the management of this administration and through OFAC, issued the licenses that allow the company to operate without restrictions in all markets.
All these measures allowed the company to generate higher levels of production, income, and profitability as of May 2019, and to positively modify its results, generating profits and a positive EDIBTA in the second half of the year with a COP 7,844 million gain, and prevented the company from going even further into a situation of insolvency and consequent bankruptcy.
2019 was a period of transition for Monómeros, of taking the necessary decisions to ensure its continuity, increase its production capacity and market share, and for this purpose the most suitable professionals were appointed according to their skills and abilities. In the present 2020, Monómeros assumes the challenge of articulating its business strategy based on the development and productivity of Colombian agriculture, new businesses, increased exports and competitiveness of the sector, for which new strengths are needed to ensure the success of the objectives.
It is important to clarify that the expenses destined to facilitate the adequate management of the Board of Directors, in no way reaches the figure indicated by Senator José Name in his statement “between 3 and 4 million dollars a year”. The expenses of the Board of Directors during the period April/December 2019 were $568,000, while the previous Board of Directors spent in 2017 the amount of $3,141,000 and in 2018 $2,816,000, for the exercise of its functions. Similarly, the body of officials who are part of the security scheme for the protection of Directors, are the same workers linked to the company for more than ten years, and in no case represent new hires made by this administration and this scheme strictly follows the recommendations of professionals in the area.
The Board of Directors