PHILIPSBURG: --- There has been an outcry from the current Council of Ministers and the community at large regarding NV GEBE and its current predicament with power outages and load-shedding.
Blame was cast on the former government, namely the former Minister of VROMI, whom they said granted several building permits for larger projects without keeping NV GEBE in the loop.
A Facebook post from the former CEO also shed light on the company’s predicament in 2016 when the current Acting Minister of VROMI, Veronica Jansen Webster, was the Chief Operations Officer of NV GEBE. If anyone knows the company's status, setbacks, and failures, it would be the acting Minister of VROMI and Deputy Prime Minister.
SMN News published hundreds of articles highlighting the issues at NV GEBE over the years, one being the appointment of several Supervisory Board members who are not qualified to be on any board. Their political affiliation got them the job, and the only thing they did was to ensure the government they supported got whatever they wanted out of the company. In contrast, the employees and the company itself were neglected, including the $30M that was given to the government so that the CEO could have kept his job.
Even though there were selection processes to appoint the management board, in most cases, the political cronies who applied were appointed. Politicians have used government-owned companies over the years as their piggy bank.
While perusing the 2016 PWC report clearly states that the management board, especially the CEO and CFO, were not capable of fulfilling their functions. That conclusion was based on their resumes and interviews conducted by PWC. The same report also indicated that the CEO was aware that the internal audit department falls under him, but he lacks experience in this area, and it would have been a development point for him. Read PWC report 2016.
In a 2016 PricewaterhouseCoopers (PwC) evaluation, significant concerns were raised regarding the suitability of the proposed CEO and CFO candidates for NV GEBE. The detailed assessment, conducted through interviews and online evaluations, revealed that neither candidate met the qualifications to execute their respective roles fully.
Assessment Overview
The candidates under review, Mr. Kenrick Chittick for CEO and Mrs. Iris Arrindell for CFO, were found lacking in several critical areas. According to the report, both candidates displayed deficiencies that would hinder their ability to perform effectively. Key areas of concern included strategic thinking, financial acumen, and the ability to handle internal audits, among other competencies. PwC's final conclusion stated that "neither of the two candidates are capable of fulfilling the functions of respectively CEO and CFO to its full capacity."
Why did these indications suggest not hiring?
The detailed assessments indicated specific shortcomings:
1. Mr. Kenrick Chittick: Despite his extensive technical background and long-term service at NV GEBE, Mr. Chittick was noted to lack financial savvy, experience with internal audits, and strategic visioning skills essential for a CEO. His strategic thinking and financial management performance were particularly concerning, with PwC highlighting a "very low score on the intelligence test" that would impair his problem-solving abilities.
2. Mrs. Iris Arrindell: While Mrs. Arrindell's long tenure at NV GEBE and her familiarity with the company was acknowledged, her ability to delegate, strategic thinking, and financial analysis were found lacking. Moreover, like Mr. Chittick, she scored poorly on intelligence assessments, indicating challenges in processing new information and solving complex problems.
Insights from Jerome Chittick's Tenure
Reflecting on his tenure, Mr. Kenrick Chittick highlighted several challenges and achievements that paint a complex picture of NV GEBE's operational environment. During his time, the Managing Board (MB) faced numerous challenges, including the aftermath of Hurricane Irma and various large-scale construction projects that significantly increased electrical consumption demands. Despite these hurdles, Chittick emphasized that no workers were laid off, and the company managed to secure necessary financing without defaulting on existing loans.
Chittick also pointed out that the MB proactively sought financing for capital expenditures, insisting on working with at least one local bank to foster local economic growth. The approval of a loan by a loyal foreign financier further underscored MB’s capability to manage and secure critical financial resources. Despite these efforts, he expressed frustration over the Supervisory Board's (SBOD) lack of authority to decide on financing institutions, which he felt undermined the MB's strategic plans
The Importance of Good Corporate Governance
The situation at NV GEBE highlights the crucial role of good corporate governance and the importance of appointing competent board members. Effective corporate governance ensures that companies are managed in a way that enhances accountability, transparency, and long-term sustainability. Key elements of good governance include:
1. Competent Supervisory Boards: Supervisory boards should comprise members with diverse skills and expertise relevant to the company's operations. They must be able to provide strategic guidance, oversee management actions, and ensure that the company adheres to best practices and regulatory requirements.
2. Merit-Based Hiring: Filling key management positions based on qualifications and experience rather than personal connections is essential for the company's success. Professional hiring practices ensure leaders possess the necessary skills to navigate complex business environments and drive the company forward.
3. Accountability and Transparency: Clear roles and responsibilities, regular performance reviews, and transparent decision-making processes are vital. This helps in building trust with stakeholders, including employees, investors, and customers.
4. Strategic Planning and Execution: Boards and management must work together to develop and implement long-term strategies that align with the company’s goals. This involves regular assessments and adjustments to stay competitive and meet market demands.
While these are points taken from the PWC report of 2016, the situation at NV GEBE has not changed much, even though there have been different persons appointed as Temporary Managers. Two of whom did not serve the best interest of the company and its employees, instead GEBE was burdened financially for their poor decision making.
Sources have informed SMN News that the current Council of Ministers is planning to make a deal or settlement with one of the former Temporary Managers, which will cost the company money it does not have.
The people of St. Maarten suffer due to the constant power outages and the lack of proper management for years that run the company aground. The Council of Ministers is choosing to take care of a friend who might campaign for them this election while the current management is looking for financing to purchase at least two significant engines.
