flandersfocus on THE DUTCH SPEAKING PART OF BELGIUM press review weekly, does not appear in July • number 34 • 2 October – 8 October 2004 INTRODUCTION fla KPMG pays 115 millions $ r la ndr u e s • s f ne of the tasks of the Court u o c c o u of Arbitration is to exam- f s O • o ine whether acts and decrees n n to LHSP shareholders r f e l are in line with the Constitu- a d n n d a l e f tion. It did this at the request r f s u a • f o s k u of the far right Vlaams Blok he accountants KPMG intend pay- them bought their shares on the Euro- and N-VA member Matthias ing compensation of 115 million pean technology exchange Easdaq. Storme with the Anti-Discrimi- T nation Act that came into force in 2003. The Blok dollars to the investors who from April KPMG Belgium, however, is waiting demanded nothing more or less than the complete 1998 to November 2000 bought shares for the conclusions of the criminal annulment of the Act. The Court of Arbitration did not agree to their demand, but did scrap four not in the Flemish speech-technology firm investigation before also considering a unimportant passages because they appeared far Lernout & Hauspie (LHSP) on the settlement (FF). from legally watertight. Certain discriminations American Nasdaq exchange. For this, (on the basis of race, religion, sex, skin colour, etc.) in the Act appeared punishable, others, such as KPMG reached an amicable settlement RENÉ DE WITTE • DE TIJD • 8 OCTOBER on the basis of language and political conviction, with the solicitors Berman DeValerio not so. The Court ruled that this distinction can in Boston and a syndicate of let-down The proceedings in which KPMG is no longer be maintained. Furthermore, discrimina- tion can now only be punished if someone is actu- investors who had initiated a class implicated involve a so-called Class- ally disadvantaged. In addition, the boundary action suit. They accused KPMG, Action Suit, whereby lawyers collect between permissible freedom of speech and dis- crimination was made clearer. The Court is afraid which audited Lernout & Hauspie’s mandates from discontented investors that public debate will be undermined, and has accounts, of being jointly responsible who then unite in a “Class”, a syndi- therefore ordered that the dissemination of dis- for the accounting fraud, aimed at push- cate. If compensation is paid, the criminatory texts is no longer a punishable offence. The legal team of the Vlaams Blok is claiming a ing up artificially the price of the share. money is divided: some for the victory for its party and for freedom of speech When the first reports of the embell- lawyers, some for the victims. In the because discriminatory comments in texts can no ished figures appeared in the press, the case of the Flemish technology firm longer be punished and the Act imposes stricter conditions on complaints of discrimination.. The share collapsed and the company ended Lernout & Hauspie Speech Products party is also applauding the fact that political con- up going bankrupt. In Belgium the let- (LHSP), proceedings were initiated viction has also become a reason for discrimina- tion. That will mean that Vlaams Blok members down L&H shareholders united around back in August 2000. One of the most can no longer be banned from trade unions and the Deminor office. A large number of targeted parties was LHSP’s company other organisations, it claims. accountant: KPMG. The members of Strangely enough, the defenders of the Anti-Dis- crimination Act, Minister for Social Integration and CONTENTS the Class filed a claim for some 5 bil- Equal Opportunities Christian Dupont (PS) and lion dollars, the amount at which their Jozef De Witte, Chairman of the Centre for Equal Economy shares had once been valued on the Opportunities and the Fight against Racism, also called the ruling of the Court of Arbitration a victo- Virgin Express full subsidiary of SN stock exchange. The syndicate and ry. The minister points out that the Act has largely Brussels Air Holding 2 KPMG have now reached an agree- been retained, that its scope has even been extend- ed and that the burden of proof has been split Advertising ban on alcoholic drinks ment on an amicable settlement for between perpetrator and victim. De Witte points for teenagers 2 the sum of 115 million dollars, or 2.3% out that the principle of reprehensible grounds - The Post can look for a partner 3 of the original claim. The agreement e.g., racism - which doubles the sentence, remains unchanged. Furthermore, the powers of the Cen- 600 jobs to go at Volkswagen Vorst 3 was submitted to the US District tre have not only been strengthened, but also Flemish employers in conference 4 Court of Boston for approval yesterday. extended once again, says De Witte. Action against phone shops 4 Marketing and Communications Di- For the Vlaams Blok, which in April was convicted of being in breach of the Anti-Racism Act 1981 by rector Jos Hermans of KPMG in Bel- the Ghent Court of Appeal, this ruling is a windfall Social policy gium stresses that the settlement does in the run-up to the crucial ruling of the Court of Cassation on 9 November. The party is hopeful that Liberals put limits on multicultural not include any acknowledgement of based on this ruling, the Court of Cassation will society 5 debt. “Such a Class-Action Suit is a le- also place a restrictive interpretation on the Racism Ban on headdresses: the first ruling 5 gal war of attrition that costs a great Act . It is asking that the Court put a preliminary question to the Court of Arbitration. This must deal of money in the US, takes up a lot then determine whether the Anti-Racism Act is Politics of time and continues to damage our also in breach of the Constitution and can defer the Disagreement about the splitting of image,” says Hermans trial for a year. Electorally that benefits the party, De Morgen (8 October) reminds us, because then Brussels-Halle-Vilvoorde 6 www.kpmg.be it will fall within the preparations for the local elec- Hole of 22,5 million at Antwerp’s tions of 2006. And as emerged from the last elec- tion results, such a trial does not harm the Blok in social welfare centre 7 the least, on the contrary. Culture: A Flemish Almodovar? 7 ■ Frank Vandecaveye | editor in chief focus on FLANDERS • 2 October - 8 October 2004 • Number 34 2 ECONOMY AVIATION ALCOHOL ADVERTISING Restriction on Virgin Express becomes full alcohol advertising subsidiary of SN Brussels for young people threatens music Air Holding festivals, brewers and The two airlines will retain their own profiles and remain operationally advertising agenvies independent t took a year of negotiations, but they gives VEX a 29.9% stake in SN Air FF EDITORIAL TEAM I got there in the end. The two Belgian Holding. VEX is getting two represen- airlines, SNBrussels Airlines and Vir- tatives on the Board of Directors, ex- The draft Royal Decree of Minister for gin Express, are to merge. The airline panding this to 18 members. VEX’s Health Rudy Demotte (PS), which Virgin Express is being subsumed under voting rights are, however, limited to aims to curb advertising for alcoholic SN Airholding, the parent holding of 24%. This does make the Virgin group drinks aimed specifically at young peo- SNBA. In exchange Virgin Express the biggest individual shareholder in ple below the age of sixteen, in the Holdings (VEX), the parent company of the holding, but it is no secret that the same way as for tobacco advertising, Virgin Express, is to bring an interest of historical shareholders of SN Air Hold- has encountered severe criticism. The 29.9% into this holding, valued at 54 ing work closely together. One or two advertising agencies fear a huge loss of million euros. The remaining 70.1% conditions are attached to the legal income, even more so than from the will remain in the hands of the 35 completion in the course of 2005, but ban on tobacco advertising, because al- investors (Tractebel, Fortis, Biac, ING, they are not under discussion. cohol’s share of the market far exceeds Dexia, etc.) set up by SN Airholding. On 31 December 2004 Virgin Express that of tobacco (Het Laatste Nieuws, The two airlines will retain their own must be entirely free of debt and its net 2 October) The brewing sector will not profiles and remain operationally inde- assets must be reduced to nil. Further- put up with a minister lecturing it, pendent. Virgin Express as a low-cost more, on that day the airline must when for years it has observed a sepa- airline, SNBA as a full-service carrier. have sufficient cash to finance its oper- rate code with rules governing the ad- The collaboration will, however, lead ational expenses for five days. That vertising of alcoholic drinks. But above to significant operational savings. It is will require an estimated 43 million all the organisers of music festivals also highly likely that the name Virgin euros from the Virgin group. Virgin fear a massive drain on finances be- Express will eventually disappear, since also wants to scrap VEX’s listing in cause beer brands could well pull out Virgin boss Richard Branson wants to Brussels. VEX wants to buy out in- as sponsors. The Stella Artois brand, reserve the name for companies where vestors for 1 euro per share.