Ostend (The Brussels Morning Newspaper): Kurt Clays acting mayor of Ostend is under investigation for allegedly proposing risky foreign investments using public funds, promising high returns to members of his party.
Kurt Clays who is temporarily acting as the mayor of Ostend has been discussing investment opportunities with several members of his party promising them generous returns on international investments. Four sources reported that during a meeting at Clays’ home one witness was approached about investing the reserves of their organization with Clays suggesting this out of the blue. Other sources indicated that the investment involved ships and was facilitated by a middleman in Germany who claimed he could significantly multiply the investment amount within a year. Another witness recalled that Clays had first brought up this investment idea over a year ago mentioning the involvement of an intermediary from Germany or Switzerland.
Are Ostend’s investment proposals by Mayor Clays fraudulent?
Many people say that the ships’ investment plan included using public funds. One witness mentioned that they were suggested to invest their organization’s subsidies into a risky foreign construction project. Another source shared that Clays approached them about using their organization’s reserves which are several million for this financial product even though this money was meant for social purposes in the city. In the end according to the witnesses no investment was made. One witness noted that when an alderman says something like this it’s hard not to listen because of their prestigious position but now they are glad they didn’t go through with it.
“The proposal was to invest subsidies in a foreign construction”
(Witness, anonymous)
It has been said that editors saw a document about an investment related to the company FCC. The aldermen would show this document during discussions. FCC doesn’t have a big website and is registered in the UK. The document says the investment will happen in Oman or the United Arab Emirates which are two Gulf countries. It explains how the investment is expected to grow in a year. The document also offers consultations about the investment in Germany or Switzerland which matches what some witnesses said.
Ostend opposition member Yves Miroir filed a complaint leading the West Flanders public prosecutor’s office to investigate the case. Miroir believes that certain financial schemes are often fraudulent and illegal. The prosecutor’s office needs to determine if any crimes were committed especially regarding whether actual investments were made after discussions with local officials. Claeys stated he would cooperate fully with the investigation. Meanwhile the financial watchdog FSMA confirmed that the ship is not registered to sell financial products and cautioned against investments that involve unclear structures or high returns from unapproved sources.
