~Insider trading, conflict of interest is only some of the order of the day at these companies. ~
PHILIPSBURG: --- The Silveria Jacobs 2 cabinet is taking some beating these last weeks and it is not clear how much longer they will be able to hold on to power as developments within their government-owned companies are overflowing with matters of concern.
It has been months now that the Holding Company of Princess Juliana International Airport began the process of sending home its Chief Executive Officer. A process that is undertaken by the Holding Company yet the Silveria Jacobs cabinet (Shareholder) and a Member of Parliament that is supporting the Government has been accused of spearheading the dismissal.
Ever since Mingo took office there is have been questions by Members of Parliament about the decisions the local CEO takes, one being the appointment of his friend as a consultant while allowing the Dutch Government through the Schiphol Group to appoint the Chief Financial Officer. Mingo also came under fire when workers of PJIAE protested and marched to the government administration building because they were not treated fairly.
The matter regarding Mingo has now taken another level since the letter from the World Bank sent to Prime Minister Jacobs was leaked. Since the leaked letter, several Members of Parliament from the opposition have made their positions known, however thus far none of those MPs that seemingly cared for the country has attacked the core issues the Holding Company claimed to have with the CEO.
SMN News contacted Managing Director of PJIAE Holding Dexter Doncher for a comment and he said that he is not willing to comment at this time because the company is still undergoing its due diligence and corporate governance procedures in the matter relating to its CEO Brian Mingo.
TELEM GROUP of COMPANIES.
Just recently, SMN News learned that the RST visited TELEM Group of Companies and questioned its Chief Executive Officer, another local St. Maartener about alleged wrongdoings after an ousted board member submitted information alleging that one of the Directors of the Company has been involved with what can be termed as insider trading.
The source said that the RST is probing to see if any of the Directors of the Company has companies that are working on the fiber optic project. Besides the allegations of wrongdoing and conflict of interest, the SOAB was also called in to conduct an Operational Audit of the companies spending.
Hopefully, the investments made in the failed Smitcoms Dominicana will be highlighted in this report. While of the above is taking place, TELEM Group of Companies do not have a full Supervisory Board of Directors in place. SMN News asked the Prime Minister about this on Wednesday and she said that names of candidates were sent to the Corporate Governance Council for vetting and when that process is completed these persons will be appointed to the SBOD of TELEM. Prime Minister Jacobs also said that even though the SBOD is incomplete the running of the company will not be affected. Asked specifically about the ongoing operational audit, Jacobs said that audit will continue uninterrupted.
CEO Kendall Dupersoy when contacted said that he will not confirm or deny whether, or not he was interviewed by the RST because in his opinion it is an internal matter.
Dupersoy said since taking office at TELEM Group, he has no knowledge of any company or companies that are working for any of the company’s directors. The CEO said that the operational audit is continuing and that he expects to get a final draft report by March 2021. He said once the audit report is received, he will then submit it to the Council of Ministers.
NV GEBE and its recruitment process.
As it relates to the country’s sole utility company it has been over 18 months now that the Supervisory Board of Directors (SBOD) have been charged with the recruitment process for the management board. NV GEBE spent a substantial amount of money on the recruitment of three candidates to fill the now vacant positions of CEO, CFO, and COO.
Two persons from within the company applied for the position, however, only one was selected from within the company to fill the COO’s position but that person is yet to respond to the offers made by the SBOD.
The other two candidates that have been selected by the shareholder has since declined the offers made by the SBOD. On Sunday last the CEO candidate officially declined the offer since the deadline he gave the SBOD was not respected.
During the long-drawn-out process, GEBE’s Chief Internal Auditor Sharine Daniel who was also a candidate that applied for the position was appointed as the interim manager as of November 1st, 2020.
Daniel was forced to resign on Thursday citing irreconcilable differences, she said in her resignation letter to the SBOD and Minister of VROMI that she has informed the SBOD members on multiple occasions that they have been interfering with the daily affairs of the company which is in breach of the articles of incorporation and the Corporate Governance Code.
Daniel is not the only member of the management team of NV GEBE that have accused the SBOD members of interference and abuse of power. The former management team also had their run-ins with the SBOD during their tenure. Issues relating to excessive legal fees for the SBOD were among matters of concern.
Not only that the SBOD is accused of alleged interference, and micromanagement but they are also accused of wanting to form a committee with members of the SBOD to write a strategic plan which will cost the company the budgeted $100K. A proposal was already sent to the Minister of VROMI regarding the strategic plan and its committee members. Besides that, the legal advisor to the SBOD has created a situation of conflict of interest with the intended purchase of the Manrique and Capprilles building since he represents both the seller and buyer.
Since the fallout between Daniels and the SBOD, they have recruited another candidate that they contracted to replace Daniel as an interim manager. It is clear that the SBOD of NV GEBE did not do the basics and screen the candidate who was a former employee of the company and was forced to quit or face dismissal when a former managing director discovered that he committed illegal acts against the government-owned company. The contracted interim manager is also doing business with NV GEBE, while he had run-ins with the law in 2013 when he was charged for money laundering. However, in 2014 he was acquitted. SMN News learned that since the questionable background of the new interim manager surfaced, the SBOD has withdrawn the contract they signed with him.
Efforts made to obtain a comment from the SBOD of NV GEBE proved futile.
HARBOR Group of Companies.
It is already known that the St. Maarten Harbor Group of Companies has had its fair share of legal wrangled that led to the conviction of several former members of parliament and a former Chief Executive Officer. While the legal process seems tainted it is more than clear that the justice chain had more than enough to prosecute those persons that did not work for the company’s best interest but instead worked for their own self-enrichment. While only one of the directors was convicted one can only wonder what role the other directors played and how come they too were not prosecuted.
The SBOD of the Harbor Group of Companies also conducted a recruitment process to fill the CEO’s position and a candidate has been selected by the shareholder. It is not clear when would this candidate be appointed so that the government-owned company can have a full-fledged managing board.
USZV operating without an SBOD.
The only medical insurance company that is tasked with providing medical insurance and to also manage the pension fund for the country has been without an SBOD for almost two years and while there is a Minster of Health, one would have to ask what exactly he is doing about appointing candidates to the USZV board. What is holding up this process and exactly why this is not done. Is it because the current director does exactly what the Council of Ministers wants and not what is in the best interest of the company, and the pension funds that are depleted daily?
USZV is tasked with providing health insurance however, for over a year now the company and its staff are focusing on the SSRP while neglecting its core task and since there is no SBOD, the director and his staff has no one to document him or sing in his ears, while those in the Council of Ministers get what they want from USZ.
