GREAT BAY--Prime Minister Luc Mercelina on Thursday delivered a wide-ranging statement on the future of St. Maarten’s sole electricity provider, NV GEBE. His address spanned household relief measures, governance concerns, and internal management conflicts, underscoring both the urgency of the crisis and the government’s strategy for reform.
The Prime Minister confirmed that government has identified and secured funding for two parallel relief mechanisms aimed at easing the pressure on households.
He revealed that originally the board of GEBE wanted to allocate Xcg 25,000 to spread across the board as relief for the "most vulnerable" in the community. On the initiative of the PM, who didn't think this was enough, this amount was increased to NAf 50,000, a move later confirmed by the GEBE Supervisory Board in a letter dated July 18. Spread over a one-year period, that is a total of Xcg 600,000 in dedicated support. This funding, in collaboration with GEBE and the Department of Social Services, will target vulnerable families most affected by high electricity costs. A criteria for selection will be determined. When exactly the year will commence is not yet determined.
To illustrate the scope, the Prime Minister reminded Parliament that St. Maarten has roughly 15,000 electricity-connected households, meaning every measure must be designed to reach a broad base of the population.
Additionally, a direct subsidy applied to electricity bills is being developed, designed to provide between six and twelve months of support. While still in the planning phase, the Prime Minister said the goal was to launch as early as December, if the system can be properly organized.
“I am not giving promises that cannot be delivered,” he cautioned. “We are working on realistic solutions, not false hope.”
While emphasizing that every household deserves support, the Prime Minister drew attention to the unique strain faced by the middle class.
“This is not to diminish the hardship of others,” he clarified, “but we must recognize that the middle class, often too ‘well off’ to qualify for traditional social aid, yet struggling to keep up with rising costs, is under severe pressure.”
By linking the new relief measures to both vulnerable families and middle-income earners, government aims to ensure that assistance does not overlook those caught in between: the workers, professionals, and families who form the backbone of St. Maarten’s economy.
These measures come on top of the government’s ongoing push for tariff reductions, including a fuel clause adjustment, though discussions on that front remain unresolved.
𝐎𝐯𝐞𝐫𝐬𝐢𝐠𝐡𝐭 𝐅𝐚𝐢𝐥𝐮𝐫𝐞𝐬 𝐚𝐭 𝐭𝐡𝐞 𝐒𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐨𝐫𝐲 𝐁𝐨𝐚𝐫𝐝
Much of the Prime Minister’s address focused on the role, and failings, of GEBE’s Supervisory Board of Directors. While four members currently sit on the board, their compliance with the Articles of Incorporation has been, in the Prime Minister’s words, “deeply troubling.”
He outlined several failures:
• No audited reports presented to shareholders since at least 2019, leaving the company’s financial position in the dark.
• Budgets not approved before financial years began, violating statutory obligations.
• Lack of transparency — both management and board failed to provide government, as shareholder, with the information necessary to fulfill its oversight role.
“These are not optional duties,” he said. “The Supervisory Board has all the legal tools to monitor management. Their failure to act has compounded GEBE’s crisis.”
On August 1, 2025, the government formally requested the Supervisory Board to resign voluntarily, citing a loss of confidence in their ability to guide the company through crises ranging from the cyberattack to today’s instability.
𝐂𝐡𝐚𝐬𝐭𝐢𝐬𝐢𝐧𝐠 𝐏𝐚𝐬𝐭 𝐅𝐚𝐢𝐥𝐮𝐫𝐞𝐬
In one of the sharper moments of the session, the Prime Minister reminded sitting MPs that some of them had served in previous governments and did little to enforce accountability at GEBE.
“It is astonishing to hear lectures today from those who themselves were in a position of oversight,” he said. “Where were the demands for audited financials during your tenure? Where was the insistence that budgets be approved on time? These failures did not appear yesterday. They are the result of years of inaction.”
He stressed that it was not enough for current MPs to point fingers at the Supervisory Board or at management, when past governments had tolerated the very conditions that allowed GEBE to spiral into crisis.
“This is not about political convenience,” he warned. “If you held office when audited reports were not being produced, then you share responsibility for where we are today. The people deserve honesty about that.”
𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐂𝐨𝐧𝐟𝐥𝐢𝐜𝐭𝐬 𝐚𝐭 𝐆𝐄𝐁𝐄
Beyond governance and relief, the Prime Minister also addressed reports of conflict within GEBE’s management. Seven members of the management team reportedly submitted a letter to the Supervisory Board expressing dissatisfaction with company leadership.
While confirming receipt of information about the letter, the Prime Minister stressed the importance of handling internal conflicts responsibly.
“As shareholder, I have written to the Supervisory Board requesting a full account,” he explained. “I have asked them what the truth is, what measures are being taken, and how they intend to prevent this in the future. But I will not compromise the privacy of employees or harm the company by turning internal disputes into public theater.”
This approach, he argued, balances the government’s duty of oversight with its responsibility to protect the credibility of GEBE as an essential service provider.
Despite the stark picture he painted, the Prime Minister insisted that the crisis was not insurmountable. He praised the daily efforts of GEBE staff who continue to work under trying conditions and stressed that government’s guiding principles, fairness, transparency, and accountability, would shape all future actions.
“Our objective is not conflict but restoration,” he said. “Relief alone is not enough. The road ahead must be paved with transparency, accountability, and responsibility. That is how we rebuild confidence and pride in our national utility company.”
The Prime Minister’s remarks underscored three critical realities for GEBE’s future:
Immediate Relief vs. Long-Term Reform – Household subsidies may ease bills in the short term, but without governance reforms, financial instability will persist.
Governance at a Crossroads – By calling for the Supervisory Board’s resignation, the government has signaled it will no longer tolerate inaction. Whether this results in stronger oversight depends on the next appointments.
Political and Public Trust – With years of frustration and high costs eroding confidence, the challenge is not only technical but political: rebuilding faith in both the utility and the government’s ability to safeguard the people’s interests.
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