Minister of Finance addresses Parliament on Telem’s financial future, leadership stability

GREAT BAY--Parliament convened a focused Question Hour on Thursday at the request of MP Darryl York to address governance, finance, and leadership issues at the Telem Group of Companies. Minister of Finance Marinka Gumbs attended as the Council of Ministers’ designated contact for Telem and answered pre submitted questions in line with Parliament’s rules of order before fielding additional questions from MPs.

Opening the session, MP York said the objective was a direct, public exchange to clarify Telem’s current position. “Telem is not just a company, it is a public asset owned by the people of St. Maarten. Today is about getting clear answers on financial management, leadership, and accountability,” York stated. He stressed that Question Hour is the right tool for timely clarity and that calls for any broader inquiry would depend on what emerges from this first step.

York’s primary questions covered the Quick Scan findings, company expenditures, and the delay in appointing a permanent CEO, as well as the role of the Minister of Finance as point of contact on behalf of the Council of Ministers.

Minister Gumbs confirmed that the Quick Scan served as phase one of Telem’s path to financial independence and survival. It identified urgent actions:

• Sale of the Telem building to improve liquidity

• Capital investments to stabilize and upgrade operations

• A comprehensive financial turnaround plan focused on liquidity and cash conversion

• An operational turnaround plan to streamline costs and performance

To protect employees and steady cash flow while the plan advances, government is finalizing a NAf 3.5 million guarantee that secures payments under Telem’s severance program. The arrangement ensures former employees continue to be paid, unlocks approximately NAf 1 million in liquidity for operations, and relieves Telem of a current NAf 1.6 million payment to Vidanova. The guarantee carries conditions agreed with Telem to support long term stability.

Gumbs said she fully recognizes Parliament’s right to be informed. However, the Quick Scan contains commercially sensitive material tied to ongoing negotiations with creditors and partners. She proposed a confidential closed door briefing for MPs, and she will seek formal legal advice on whether a redacted version can be shared under conditions.

Based on figures supplied by Telem management, the Minister reported:

NAf 231,000 in travel spending across the last nine months for staff, management, and the Supervisory Board

• Senior management board approximately NAf 75,000

• Supervisory Board approximately NAf 51,000

• Telem staff approximately NAf 105,000

NAf 170,000 in consultant travel related to the Network Project

• Lodging approximately NAf 120,000

• Car rental approximately NAf 39,000

• Other approximately NAf 10,000

Following the 2024 restructuring, Telem has streamlined operations. Gumbs said three consultants currently serve in line functions, two are local, and other consultants are engaged on specific projects as part of a leaner operating model.

On the CEO vacancy, Gumbs explained that a professional recruitment firm delivered its report in December 2024. A final recommendation was submitted to the shareholder in May 2025. With the Quick Scan completed in July 2025 and presented to the Council of Ministers in August, the appointment is tied to the design of the turnaround’s phase three so that leadership aligns with the plan’s needs. The Minister said a decision will be communicated to Telem and Parliament promptly.

To strengthen continuity and accountability at leadership level, the Minister said government will:

• Finalize Supervisory Board appointments

• Address key C Suite positions to ensure a capable team for execution

• Convene monthly review meetings beginning the last Wednesday of October to monitor financial results, liquidity, and compliance

If Telem fails to meet financial or operational obligations for more than one month, the government reserves the right to intervene at the shareholder level in order to protect service continuity and the public interest.

After the Minister’s initial answers, MPs posed follow ups. Highlights include:

• MP York asked why the CEO decision follows the Quick Scan by several months and requested the exact number of all consultants, including those on project basis, as well as a full list of receivables and payables. The Minister committed to provide figures in writing once received from Telem and noted the sequencing, Quick Scan in July, Council of Ministers in August, with the turnaround plan shaping leadership needs before the final appointment.

• MP Ardwell Irion asked for clarity on the Minister’s mandate. Gumbs explained that by Council of Ministers decision of August 2025, she is the contact person for Telem due to the financial nature of current issues, while decision making remains with the Council of Ministers.

• MP Egbert Doran asked for the fiber to the home payment details and about a reported extra switch acquired for Curaçao. The Minister said those specifics must come from Telem and will be provided in writing.

• MP Ardwell Irion asked whether consultants declare local taxes and whether the Minister is open to a forensic audit in 2026. Gumbs said tax declarations are a matter for Telem and the Tax Administration, and that any forensic audit would require Council of Ministers’ consideration.

• MP Francisco Lacroes asked about Starlink and potential distribution arrangements. The Minister said she would need information from Telem and would update Parliament in writing.

• MP Lyndon Lewis requested a breakdown of Telem’s outstanding debts and receivables and asked how long Telem can operate under present conditions. The Minister reiterated that audited 2023 financial statements will be shared and that 2024 audited statements are expected shortly, adding that forward solvency assessments will be guided by the turnaround plan now being finalized.

• MP Omar Ottley asked about loan processes, how Telem will meet expenses beyond this year, and whether government has been notified of employee unrest. The Minister said the turnaround plan and monthly monitoring will frame financing decisions and that she has not been notified of unrest. She emphasized that ensuring timely payment for current and former employees remains a priority.

The Minister committed to deliver:

• Telem’s 2023 audited financial statements to Parliament and, once completed, the 2024 audited statements

• Written replies to all follow up questions that require company data or TEATT input

• A possible closed door session for MPs and Telem on the Quick Scan, with legal guidance to assess whether a redacted version can be shared

The Chair confirmed that a follow up meeting will be scheduled and that a partially public format will be explored so that non sensitive updates can reach the public while proprietary commercial details remain protected.

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