EXCLUSIVE: Port appointments stalled since January 2021 | RALPH CANTAVE

** Exclusively on SXM Talks, articles by Ralph Cantave **

~ New Process for Supervisory Board Members Pending ~

PHILIPSBURG - Following ongoing corporate governance challenges at NV GEBE and PJIAE, Port St. Maarten remains with an incomplete supervisory board of directors for over 15 months. Presently there are only two members on the board; three short of the legally required amount of five. A maximum of seven members is allowed. The recruitment process began in September 2020 during the tenure of former Minister of Tourism Economic Affairs Telecommunications and Transport (TEATT), Ludmila de Weever. The government accounting bureau SOAB was selected to handle the recruitment of which the application deadline was September 25, 2020. Several persons applied and were interviewed. In conclusion, SOAB informed the top three candidates of their selection and sent their names to the Minister. However, while that was done in January 2021, the names weren’t forwarded to the Corporate Governance Council (CGC) to finalize the process. As a result, the CGC could not provide a report on the candidates also preventing a copy to be sent to Parliament as per customary procedure. The reason for the setback is unclear.

Varied Interpretations of Procedure

In response to questions on the delayed process, the current Minister of TEATT Roger Lawrence stated: “Due to circumstances unknown to me, this procedure was never continued... as the procedure, as stated, was never completed, no nominees were rejected/dismissed, and no names of nominees were sent to the Corporate Governance Council (CGC) for advice.” 

Lawrence added, “Due to the inaction of executing the standard subsequent procedure to appoint the candidates and the significant time passing until my inauguration in late August, it was not considered appropriate to continue this unfinished procedure… Therefore, the ministry has opted to place a new advertisement for applicants to express their interest in serving as a member of the Port’s Supervisory Board.”

The former Minister now United People’s Party (UPP) Member of Parliament, responded to questions on her handling of the process and provided her position on the delay.

According to de Weever, the Council of Ministers (COM) received those names as well, therefore, deliberation on the selected candidates had to continue but did not proceed. She added that the recruitment for the board and Chief Executive Officer (CEO) was done at the same time but information on board members came a lot later. That information was the complete list of applicants she kept requesting. “By the time we received it, I was already leaving office and we were finishing off open projects.” 

De Weever’s letter to the CGC expressing the intention to appoint Alex Gumbs as CEO dates July 27, 2021. Noteworthy is the appointment of the CEO, was finalized after De Weever left for Parliament. De Weever was sworn in as an MP on May 18, 2021, and remained as a Minister until August 13, 2021. De Weever’s request for more information and the lack of follow-up in the COM appears to be the reason the appointments were stymied.  

De Weever was asked about her position on a new process taking place and stated that it’s the prerogative of the Minister to initiate new recruitment however she questioned the financial responsibility of doing so and the motivation provided to not proceed with the three approved persons.

 “There is no expiration to this recruitment process unless it’s convenient for those persons to now be excluded.” De Weever added, “in addition, there was a push by all stakeholders, including myself,  to ensure this recruitment process was done in a transparent manner and in accordance with the corporate governance procedures to avoid further reputational damage to a company embroiled in litigation and accusations of mismanagement, all rampant at the time I came to office.”

Lawrence stated that the new recruitment will not be an added expense to the Port and is a high priority for the Ministry. The advertisement will be placed on the government’s website and in the paper according to the minister’s office. Nevertheless, the prolonged incomplete board is against Article 12 of the St. Maarten Harbor Holding Company’s (the holding company oversees all subsidiaries including Port St. Maarten) statute. This weakens proper supervision to be carried considering there are also 12 companies owned by the holding.