United People’s (UP) party Leader Member of Parliament Theo Heyliger said on Sunday the National Alliance (NA)-led Government is “ransacking GEBE for NAf. 31 million with no remorse for the ramifications it will have for the country.”
Heyliger lashed back at National Alliance (NA) leader Prime Minister William Marlin’s claim that he was giving the public misinformation about Government’s demands from utilities company GEBE. “The Resolution of the Shareholders of GEBE, dated January 28, and signed by Mr. William Marlin, clearly outlines what his coalition is demanding from GEBE. A company that is no less than the heartbeat of our economy,” said Heyliger.
The Shareholder’s Resolution declared the collection of a temporary dividend of NAf. 11 million payable immediately to the Shareholder (Government).
The instructions from Government in the Shareholder’s Resolution does not ask the opinion of the company’s supervisory board or management, said Heyliger.
“Government does not take into account the backlog in the company’s investments nor does it take the issue of any calamity befalling the company such as the need for another new generator, which for comparison sake, cost approximately US $ 12 million,” Heyliger said.
“It will be interesting to see if more will be demanded from GEBE considering page 15 of the draft 2016 budget calls for the Ministry of Public Health to get NAf. 10 million. Does this mean the remaining money will be milked out of GEBE,” Heyliger questioned.
The Shareholder’s Resolution states the supervisory board and management is approved to purchase the generator set on a turnkey delivery for the sum of 10,342,000 euros with a down payment of 15 per cent at the signing of the turnkey delivery contracts. The balance of the purchase price is to be financed by a local financial institution on a long term basis.
GEBE has accumulated in excess of NAf. 35 million in reserves from managing the water distribution for Government. The Shareholder’s Resolution instructs GEBE to immediately remit NAf. 20 million to Government from the accumulated amount.
“Government appears to have not taken into consideration that GEBE has been subsidizing the water operations to keep cost low for residents. Tampering with the company’s reserves will put that subsidizing in jeopardy or to put it more plainly the cost of water and electricity can increase,” Heyliger said.
“This resolution is simply amazing to say the least. It is clear this Government has no clue about the financial standing of GEBE. It only knows GEBE has money in the bank and it wants it without consideration,” said Heyliger.
“GEBE must have reserves to continue investing in new equipment. This move by Government to fleece money from the company will jeopardize pension plans and other employee benefits. No other government company has been requested to do this and the question is why,” Heyliger said.
“The facts are clear and that are in the resolution. GEBE is the heartbeat of this economy. It’s provides electricity and water to our community. It provides jobs to our locals and pays substantial taxes to Government,” Heyliger said
The UP leader issued a call on both the business community and unions to investigate Government’s demand for money and to not allow this fleecing to happen, because it will have detrimental consequences for St. Maarten.
