PHILIPSBURG:--- In a saga that reeks of selective transparency and questionable motives, the government of Sint Maarten, under the stewardship of Prime Minister Dr. Luc Mercelina, has found itself at the center of a storm over its handling of two critical reports on electricity and water tariffs. On one hand, we have the BTP/RAC report, a document riddled with questionable assumptions and a narrow focus on reducing tariffs. On the other hand, the RCRC report commissioned by GEBE, which systematically dismantles the BTP/RAC findings, was conveniently sidelined. The glaring contradictions between these reports and the government’s selective disclosure raise serious questions about transparency, accountability, and the true motives behind these decisions.
The BTP/RAC Report: A Flawed Foundation
The BTP/RAC report, commissioned by the government, set out with a singular objective: to determine whether the fuel component of electricity and water tariffs could be reduced. This narrow focus, as highlighted by the RCRC report, created a "tariff-reducing mindset" that ignored the broader financial implications for GEBE and the people of Sint Maarten. The BTP/RAC report failed to consider the historical lessons from Curaçao in 2011, where a similar reduction in fuel tariffs nearly bankrupted the utility company, forcing a government bailout. This omission alone is a glaring oversight that undermines the credibility of the BTP/RAC findings.
The RCRC Report: A Voice of Reason Silenced
In stark contrast, the RCRC report provides a balanced and data-driven analysis, warning against the dangers of reducing a single tariff component without considering the broader financial ecosystem. It highlights the precarious financial position of GEBE, which is already struggling to achieve reasonable returns under the current tariff structure. The RCRC report also exposes the flawed calculations in the BTP/RAC report, particularly regarding the fuel component for water production, which ignored a 1979 Ministerial Decree and led to inaccurate recommendations.
Despite its critical insights, the RCRC report was not shared with the public or stakeholders. Instead, the government chose to release a redacted version of the BTP/RAC report, effectively silencing a more comprehensive and accurate evaluation. This selective disclosure is not just a disservice to the people of Sint Maarten but a blatant act of obfuscation.
Key Contradictions and Oversights
- Bias and Narrow Focus: The BTP/RAC report’s singular focus on reducing tariffs ignored the broader financial implications, while the RCRC report called for a comprehensive evaluation of all tariff components.
- Historical Lessons Ignored: The BTP/RAC report failed to consider the 2011 Curaçao debacle, a critical oversight that the RCRC report highlighted as a cautionary tale.
- Flawed Calculations: The BTP/RAC report’s miscalculation of the fuel component for water production was exposed by the RCRC report, which adhered to the 1979 Ministerial Decree.
- Financial Sustainability: While the BTP/RAC report advocated for immediate tariff reductions, the RCRC report warned that such actions would jeopardize GEBE’s financial sustainability and lead to long-term consequences.
- Transparency and Accountability: The government’s decision to withhold the RCRC report and release only a redacted version of the BTP/RAC report undermines public trust and raises questions about its true motives.
The Cost of Silence
The implications of this lack of transparency are far-reaching. GEBE is already grappling with significant challenges, including the need for substantial investments to upgrade its infrastructure and align its operations with the growing demands of Sint Maarten. The RCRC report highlights the risks of reducing tariffs without a balanced approach, warning that such actions could lead to a financial crisis similar to the one in Curaçao. By sidelining the RCRC report, the government has effectively denied the public access to critical insights that could inform a more sustainable and equitable tariff structure.
The people of Sint Maarten deserve better. They deserve a government that prioritizes transparency and accountability over political expediency. They deserve access to all the facts, not just a carefully curated version of the truth. And they deserve a utility company that is financially stable and capable of meeting their needs, now and in the future.
Prime Minister Dr. Luc Mercelina must answer for his decision to withhold the RCRC report. What was the rationale behind this move? Why was the public not allowed to evaluate both reports and form their own opinions? And most importantly, what steps will the government take to ensure that GEBE is not pushed to the brink of financial collapse?
The time for half-truths and selective disclosures is over. The people of Sint Maarten deserve the full story, and they deserve it now.
Click here to read the analysis of the RCRC Report.
Click here to read the BTP/RAC Report.
