PHILIPSBURG: --- A contentious public meeting of Parliament on Thursday laid bare the deep-seated issues plaguing St. Maarten’s sole utility provider, NV GEBE. Prime Minister Dr. Luc Mercelina faced a barrage of questions and interruptions as he outlined the government's response to the ongoing energy crisis, high electricity costs, and a collapse of public confidence in the company. The session culminated in the revelation that the government has formally requested the resignation of GEBE's entire Supervisory Board.
The meeting, convened on an urgent basis, tackled the pressing concerns of residents and businesses who have endured a year of instability, including daily blackouts and soaring bills. Prime Minister Mercelina acknowledged the severity of the situation, attributing the crisis to "years of mismanagement and lack of proper decision-making" by previous administrations.
Relief Plans Ignite Controversy
A significant portion of the discussion focused on providing financial relief to consumers. The Prime Minister detailed a two-pronged approach while dismissing several popular but, in his view, unworkable proposals.
Key Relief Initiatives:
- Targeted Social Relief: GEBE will proceed with its plan to allocate 50,000 Caribbean guilders per month to assist approximately 250 of the most vulnerable households. This program, developed in collaboration with the Social Services department, is expected to launch in September 2025.
- Government Household Subsidy: Acknowledging that relief must extend beyond the most vulnerable, the Prime Minister announced that the government is developing a new household-based subsidy. This measure aims to provide direct relief to the "hard-working class" for a period of six to 12 months, with a target start date of December 1, 2025.
However, the Prime Minister’s presentation sparked controversy. He systematically dismantled proposals to waive concession fees or reduce the port's throughput fee, explaining that these funds are essential for government operations and the port's financial stability.
The debate grew particularly heated over the issue of Turnover Tax (TOT) on fuel. MP Omar Otley vehemently contested the Prime Minister's assertion that fuel sold to GEBE for electricity generation is exempt from TOT, claiming to have invoices from fuel supplier Sol to both GEBE and the harbor that included the tax. The sharp exchange, which included accusations of lying, underscored the deep distrust surrounding GEBE's financial operations.
Shake-Up at the Top: Government Demands Accountability and New Leadership
Perhaps the most significant development was the government's move to overhaul GEBE's leadership. Prime Minister Mercelina confirmed that on August 1, 2025, the shareholder formally requested the voluntary resignation of all four members of the GEBE Supervisory Board of Directors.
He cited a "loss of confidence" in the board's ability to guide the company, pointing to a failure to act with urgency and a lack of compliance, highlighted by the fact that audited financial reports have not been submitted since 2019.
"Despite repeated engagement, the current supervisory board has not acted with the urgency and effectiveness towards the situations," Mercelina stated, emphasizing the need for decisive action to restore trust and stability.
Internal Conflicts and Outstanding Issues at GEBE
The final agenda point, concerning internal unrest and a demand from middle management for the CEO's removal, was handled with caution. The Prime Minister declined to discuss the sensitive internal conflict in a public forum, stating he had requested a formal explanation from the Supervisory Board to understand the situation before determining the government's position.
The meeting was adjourned before members of Parliament could begin their rounds of questioning, leaving many issues unresolved. It will be reconvened at a later date, promising further scrutiny as the government pushes forward with its plans for subsidies and a complete overhaul of GEBE's governance.
