~ TELEM has been going downhill since 2017~
PHILIPSBURG: --- The government of St. Maarten plans to give TELEM Group of Companies some NAF 5M to assist the company that is failing financially. Prime Minister Dr. Luc Mercelina confirmed that his government is considering granting TELEM their request for NAF 5M. SMN News learned that discussions are still ongoing with TELEM and that no final decision has been taken on the way forward.
Mercelina said when he first took office in 2024, the Council of Ministers met with the management of TELEM, who presented the company's financial situation.
“TELEM has been going downhill since 2017, based on the graphics shown to the shareholders. When I saw the decline in revenues, I asked myself how it was possible that governments in the past allowed such since the company had been in the red since then. However, his government intends to move forward and will try to save the company, and if it fails, it will impact employment. Therefore, as Prime Minister, we must step up to the plate and do what is necessary for the company.”
Mercelina said the Minister of Finance, Marinka Gumbs, is fully aware of the gravity of the company’s financial situation and has been discussing with TELEM management on NAF 5M.
The Prime Minister said that St. Maarten has challenges with its national budget and that, as a government, they have to neutralize the budget while trying to fit in the extra expenses and still have a budget that can serve the country.
Despite the financial situation TELEM is facing, the company opted to spend between nine to fourteen million United States Dollars to switch over the Mobile Network to a Chinese Company, HUAWEI, which has been banned in the United States, without considering the impact this switch will have on St. Maarten’s Tourism Economy. The switch was done in late 2024.
When SMN News asked Prime Minister Mercelina about the decisions taken by the management of TELEM to switch over its mobile network to HUAWEI, Mercelina said he was unaware of the switchover and promised to investigate further.
SMN News will update this article when the Prime Minister of St. Maarten provides an update.
