GEBE Temporary Manager Sharine Daniel
PHILIPSBURG--“Critical” was the term used by GEBE’s Temporary Manager Sharine Daniel to describe the company’s current financial situation.
Speaking to Lady Grace on the “Breakfast Lounge” on PJD2 on Thursday, Daniel said clients were not paying following the ransomware attack and the large numbers expected after the June 6 reopening, were disappointing. The company had to tap into its reserves to keep providing clients with service and to keep the company running.
“The company’s financial situation is, at this point in time, critical. Yes, it is, and why is it critical? It is critical because when GEBE closed its doors on March 17 due to the ransomware attack, the people of St. Maarten, with all due respect, were not paying. As a result, NV GEBE had to basically for the past months sustain the people of St. Maarten by ensuring that they had electricity and water on our reserves,” she explained.
“We are tapping into the reserves. … And this is why at this point in time when you’re looking at your numbers and looking at your cash position and looking at the risk around it, I guess the next step would be ‘is disconnection fair, is it reasonable and how will we proceed with the way forward?’”
She said GEBE has been as transparent as it can be. The company cannot divulge information on its numbers and figures, as vendors and clients are watching. “However, I would say that GEBE’s financial situation is critical and this is why, more than ever, we have started to evaluate the situation, we have started to take note of it and we have started to take decisions, because at the end of the day, we are human and I am aware of the financial challenges. I am aware of the struggles of the people of St. Maarten.
“Yes, I am aware, but when you sit in a position as a temporary manager of a government-owned company as GEBE that provides two basic essential needs, you are committed to take the best decision in the best interest of the company while still taking into consideration the employees and the people of St. Maarten.”
Daniel said that the company had actually produced more kilowatt hours of electricity from March to July of this year than it did for the corresponding period last year. GEBE produced more than 132 million kilowatt hours in electricity from March to July 2021 and 139 million kilowatt hours of electricity from March to July of this year. “Here is the situation. We are producing, GEBE is also distributing, but the problem is we are not collecting,” she said.
“In 2021, … before the ransomware, before March 17, GEBE normally collected 550 [it could not be ascertained whether the 550 referred to means 550,000 and whether it is US dollars or Netherlands Antillean guilders – Ed.] a day in cash. Since March 17, we barely collect even two [the amount being referred to could not be ascertained] a week sometimes its $30,000 a day. Sometimes it
’s $20,000 a day which barely makes 200-and-something thousand a week.
“Now GEBE has its expenses. GEBE has to sustain GEBE. So, now I will pose the question back to you, Grace: what is the next logical step that GEBE can do to solve its company?” she said.
Asked by the host what the company is losing financially in figures, she said: “Do not hold me to the figures, but I will just throw out something to give you a synopsis so you can have that clarity.
“If GEBE was accustomed of making, for example, 15 million in revenue a month, since March 17 GEBE barely makes 5 to 6,” she said, adding that looking at the 20/80 Pareto Rule, the majority of the company’s revenue [80 percent] comes from its industrial and business/commercial clients, which the company has placed as a priority. GEBE has put a team in place to address the specific concerns of its commercial clients.”
https://www.thedailyherald.sx/islands/gebe-s-financial-situation-is-critical-warns-daniel
