PHILIPSBURG:--- Member of Parliament Ludmila de Weever has formally questioned the government's commitment to Sint Maarten's national telecommunications provider, TELEM. In an urgent letter to Minister of Finance Marinka Gumbs, De Weever raises serious concerns about the company's financial stability and the government's apparent reluctance to provide necessary support. The inquiry draws a stark contrast with the government’s previous bailout of a private entity, questioning the standards being applied to a critical national asset.
TELEM's financial position is described as fragile, a situation exacerbated by increasing market competition and what the St. Maarten Communications Union (SMCU) refers to as years of mismanagement. The company requires a government guarantee of NAf 5 million to stabilize its operations. This financial lifeline is not just about keeping the company afloat; it has direct consequences for its workforce.
According to MP De Weever’s letter, a crucial part of this financial support is tied to severance payments for employees made redundant. Without a government-backed financial injection, these former employees may not receive their agreed-upon salaries from Vidanova, amounting to approximately NAf 500,000 per month. This highlights the human cost of delayed action and the ripple effect on Sint Maarten families.
The letter to the Minister of Finance is not just a plea for funds but a demand for transparency and a sustainable plan. MP De Weever has requested specific details on several key points:
The Financial Injection
Is the government moving forward with financial support, and what is the timeline? The urgency is clear, as monthly payments to redundant workers hang in the balance. De Weever questions whether the government is prepared to face these former employees and the current staff to explain a potential failure to meet salary obligations.
Structure and Safeguards
If support is provided through a guarantee letter, the MP asks for a detailed breakdown of how the NAf 5 million will be used. More importantly, what oversight measures will be implemented? De Weever is pushing for accountability, asking how the government will measure the performance of TELEM's management and supervisory board to ensure public funds are used effectively and contribute to the company's long-term health.
Protecting the Local Workforce
A significant concern raised, echoed by the SMCU, is the protection of local labor. The letter questions whether TELEM will be required to prioritize hiring local technicians before seeking labor from abroad. This follows a previous restructuring in 2023, where foreign labor was utilized, leaving the local workforce, including some of those made redundant, underutilized. The condition aims to ensure that any government support also benefits the local economy and its skilled workers.
A Question of Strategic Vision
The situation with TELEM prompts a larger, more strategic question about the nation's infrastructure. MP De Weever directly asks the government for its position on whether Sint Maarten should continue to maintain its own telecommunications network. This question is especially relevant following the recent authorization of Starlink as a competitor by the Minister of TEATT.
The letter points out an apparent inconsistency in government actions. While a private company like Ennia received a bailout that tied the country into a 30-year commitment with little public substantiation, the government seems hesitant to secure the future of its own telecommunications provider. This raises questions about the administration's priorities and its vision for national assets.
The Potential Financial Fallout
Failing to support TELEM could lead to a greater financial burden on the government. If the company cannot meet its obligations, the responsibility for the salaries of both the 74 redundant employees and the 53 remaining employees could fall to the public purse. The monthly cost for the redundant employees alone is estimated at NAf 500,000, with the remaining staff salaries potentially adding another NAf 300,000 per month.
MP De Weever argues that this potential monthly liability far exceeds the cost of the NAf 5 million guarantee letter. The choice, therefore, is not simply about bailing out a company but about making a strategic investment to prevent a larger, more chaotic financial crisis that would directly impact citizens.
A Call for Urgent Action
The letter from MP De Weever highlights a critical moment for TELEM and the government's role in managing national assets. As the people of Sint Maarten rely on TELEM for essential services, Parliament and the public await an urgent and comprehensive response from the Minister of Finance. The decisions made in the coming days will not only determine the fate of a company. Still, they will also send a clear signal about the government's commitment to its people and its national infrastructure. To ensure full transparency, the MP has also requested a copy of the Quick Scan report on TELEM, as well as its most recent audited financial statements.
Click here to read the letter sent to the Minister of Finance
