Delayed criminal investigation undermines investor confidence

Minority shareholders who suffer huge losses are left waiting for years, while courts, despite their best efforts, lack the resources to act quickly. Judges do what they can, but they are overburdened and underfunded. During a hearing in Parliament in January, Bernard Thuysbaert of deminor NXT hit the nail on the head: in Belgium, criminal investigations into financial cases are so slow that they risk turning into a free pass for companies that flagrantly violate the law.

Minister of Justice Annelies Verlinden acknowledges the problem. In a recent interview with De Tijd, she points out that financial cases often remain on the shelf for years, resulting in considerable delays. She explicitly refers to the Nyrstar case as an example of what needs to be addressed urgently. Not only are such cases often not a priority, but the system is also hardly able to compete with the armies of lawyers who drag out proceedings until justice becomes meaningless.

This is not just a legal problem. It is also an economic problem. As Kris Vansanten, representative of the minority shareholders in the Nyrstar case, already stated: no capital market can flourish in a country where enforcement is so weak that companies simply factor delays into their strategy. Investors are not blind. They move to other places while confidence continues to crumble, with disastrous consequences for both the business climate in our country and economic growth in general.

Belgium urgently needs reforms to give the judiciary the means to prosecute financial crime and provide timely compensation to shareholders. Without this, we are telling companies that laws are optional and investors that they are on their own. Anyone who wants to restore confidence in our markets, protect minority shareholders, and attract long-term capital must take action now.

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