Minister of Finance, Hon. Marinka J. Gumbs, has provided a detailed update regarding the financial position and future steps for TelEm Group, following questions posed in Parliament.
Quick Scan Results and Next Steps
A financial “quick scan” was conducted earlier this year as Phase 1 of TelEm’s path toward financial independence. The report highlighted several urgent measures, including the sale of the TelEm building, new capital investments, a comprehensive financial turnaround plan, and operational improvements to strengthen liquidity and ensure the company’s long-term sustainability.
The Minister noted that Government remains in close contact with TelEm and that the turnaround plan, to be developed as Phase 3, will be essential to ensuring the company’s recovery and stability.
Government’s Guarantee to Support Former Employees
To safeguard employee payments and stabilize operations, Government is finalizing a guarantee of XCG 3.5 million, bringing the total security for the severance payments to the former TelEm employees to XCG 7.5 million. This ensures continued payments to former employees while providing TelEm temporary liquidity relief.
“Current and former TelEm employees have been vital in serving our people for decades,” Minister Gumbs emphasized. “They should not have to worry about whether their salaries will be paid on time. This guarantee is about providing that assurance while giving TelEm space to rebuild.”
TelEm has committed to meeting its monthly obligations, while Government will continue to monitor financial stability through mandatory monthly review meetings.
Looking Ahead
“TelEm is one of Sint Maarten’s core institutions, and ensuring its long-term sustainability is a priority,” Minister Gumbs stated. “Government remains committed to supporting the company’s turnaround through sound governance, transparency, and accountability to the people of Sint Maarten.”
Minister Gumbs expressed her appreciation to TelEm’s employees, both current and former, for their years of dedication and service in keeping Sint Maarten connected. She acknowledged their resilience and commitment, especially throughout periods of restructuring and transition.
The Minister emphasized that former employees should remain assured that their monthly salary payments will continue uninterrupted, as the government’s actions are aimed at ensuring stability and safeguarding their well-earned benefits.
https://www.sintmaartengov.org/news/Pages/Minister-of-Finance-Hon--Marinka-J--Gumbs-Provides-Update-on-TelEm-Developments-Following-Parliamentary-Questions.aspx
