The "Integrity" issue has been a long running problem on St Maarten, and I think the Dutch government is right to hold back these funds until the local government satisfies The Hague's demands. It's the only way to insure that the money will actually be spent on reconstruction. I remember back in the Eighties when the Island was put on "higher supervision" by the Dutch government for basically the same reasons. I'm also sure that an eventual settlement will be achieved because the Island must be re-built.
Phil