PHILIPSBURG:--- Prime Minister of St. Maarten Sarah Wescot Williams announced on Wednesday during the Council of Ministers press briefing that the Government of St. Maarten and RGM signed off on the buy-back of the Government Administration Building located on Pond Island.
Wescot Williams said that the signing took place on Monday at a notary's office. The Prime Minister gave members of the media a long explanation on the contract government entered into with RGM for the construction of a shell to house the Government Administration Building. That contract she said was signed in 2006. While RGM was supposed to construct the shell of the building. The amount back then government paid RGM was $16,270,000.00. The Government of St. Maarten had agreed to complete the construction of the inside of the building, furnish it and they also had to provide security. The building was completed in 2008, however, the Government of St. Maarten could not complete and move into the building due to financial restraints. The official handing over of the building took place on February 2009. Shortly after in June 2009 the Government of St. Maarten issued a stop order on the work on the government building.
Wescot Williams said since then two court cases were initiated, the first one the Government of St. Maarten won but they lost the second case and was condemned to finalize the building and move in within 12 months, failure to do so would cost government a fine of $5000.00 per day. With the buy-back agreement that was signed on Monday both cases that are pending in appeal will be withdrawn. The long lease government had granted to RGM for the construction of the government building has also been withdrawn and it now becomes the property of government.
In explaining the dilemma the government faced with the government building on Pond Island, Wescot Williams said the relationship with RGM was damaged beyond repair. The buy-back price government paid amounted to $12,387,500. She further explained that the current appraisal for the building as it stands now is more than double what government paid for it. The Prime Minister said she still does not have an exact date as to when the building will be completed and the timeline for them to occupy the building. She said within the next few weeks she would be able to provide a more accurate date for completion.
