Finance Minister says overdue customer payments are putting pressure on GEBE’s cash position, while the Cft calls for clearer provisions for troubled government companies
PHILIPSBURG:--- Finance Minister Marinka Gumbs told Parliament on Monday that the government still lacks complete, up-to-date financial reporting from several of its companies, limiting its ability to measure the risks they pose to the 2027 budget.
Her assessment focused particularly on NV GEBE, TELEM and Postal Services St. Maarten (PSS). It also raised a question for Parliament as it examines the government’s projected Cg 8 million ordinary-service surplus: what would happen to that narrow margin if one of those companies required financial support?
Gumbs said the government recently received GEBE’s financial statements through 2024, but its 2025 statements have not been finalized. Based on the information available, she described the utility’s equity and liquidity positions as stable. Its profitability, however, fell significantly in 2024, which she attributed mainly to emergency repairs and leases for supplemental power generation.
She identified growing outstanding trade receivables as a further pressure on GEBE’s liquidity. Those are amounts owed to the company for goods or services it has provided. The minister did not set out in her presentation how much of the outstanding balance GEBE expects to collect, over what period, or what effect continued growth in receivables could have on its cash needs.
TELEM’s position remains difficult despite an expected return to a modest profit. Gumbs said the company projects a profit of approximately Cg 0.5 million for 2025, following losses of approximately Cg 7.6 million in 2024 and Cg 38.4 million in 2023. She added that TELEM continues to struggle to meet some lender obligations and comply with its restructuring requirements.
PSS, she said, remains largely dependent on additional government contributions while it works to improve its financial sustainability.
The financial supervision body Cft raised these same entities in advice included with the draft budget. It described TELEM, GEBE and PSS as facing serious financial problems and said TELEM’s and PSS’s difficulty meeting short-term payment obligations presents a direct risk to government finances. It advised the government to assess the exposure more fully and reflect any necessary provision or other financial solution in the 2027 budget.
The Cft also called for a strategy addressing the long-term viability of all three companies, with any financial consequences incorporated into the budget. Gumbs told Parliament the government is working to finalize a participation policy intended to strengthen oversight, reporting requirements and performance expectations for government-owned entities.
Not all the companies face the same outlook. Gumbs said Port St. Maarten projects a profit of approximately Cg 24 million for 2025, although much of its available funding is earmarked for investment and expansion. She also cited a draft Cg 10 million profit for Winair and stronger first-quarter 2026 revenue at Princess Juliana International Airport Operating Company following the opening of its new terminal.
Profits at one company, however, do not show how another company will meet its obligations. As the Central Committee debate proceeds, Parliament needs updated statements on the size and age of GEBE’s receivables, TELEM’s outstanding lender obligations, and the expected government contribution to PSS. Those figures will show whether the risks Gumbs acknowledged can be managed within the budget now, before Parliament.
