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SMCU President: Government’s continued silence and inaction regarding the situation at TelEm is no longer  just disappointing, it is unacceptable

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The government’s continued silence and inaction regarding the situation at TelEm is no longer  just disappointing, it is unacceptable.

For years, administration after administration has been  warned by the union, employees, and concerned citizens about serious mismanagement, poor  decision making, and the steady decline of a government owned company that once stood as a  national pillar. Those warnings were ignored. Promises were made during election seasons, and  once votes were secured, those promises disappeared.

What has remained constant is a pattern: employees are sent home, while those in positions of  power are protected. It is painfully clear that several governments that have taken office have  approved decisions to send workers home, yet have failed to seriously question, challenge, or  investigate the management actions that pushed TelEm millions into debt.

The only action that  ministers and the board seem prepared to approve, over and over again, is job cuts.

  • No real  accountability.
  • No real intervention.
  • No protection for the people who built the company.

Nearly 170 dedicated employees have paid the price for years of decisions they did not make.  Families suffered. Livelihoods were destroyed. And still, no one has been held publicly  accountable for the financial state of the company.

Helma Etnel was allowed to function as both CFO and acting CEO, with full approval from the  board and the government. During that period, employees were sent home and millions were  taken on for the Fiber to the Home project, a project that remains incomplete while the loan and  other debts remain unpaid. She is no longer in those positions, yet the company was left in  serious financial distress.

To this day, there has been no clear, visible accountability, no public  explanation, and no reassurance that the country’s laws and standards of governance were upheld. MER won the case and Telem had to pay millions. Why were the ministers asleep?

What makes the situation even more disturbing is that the same mistakes appear to be happening  again. The government is once more allowing the CFO to effectively run the company without  appointing a CEO. The last time one person held both positions, TelEm ended up in deep  financial difficulty and is still in that position. Yet again, Mr. Hato is now serving as CFO while  also acting in both roles. This is not leadership, this is a repeat of a structure that already proved  to be risky and harmful.

After employees were sent home for the second time because the company claimed it could no  longer afford to keep them, the government then approved the hiring of workers from Colombia  and other countries. Today, TelEm reportedly has employees from Curaçao on the payroll  earning high salaries, with housing and travel expenses covered by the company. How can a  company that claims to be in deep financial trouble afford these kinds of expenses? How can  there be money for foreign labor, but no money to retain or rehire local employees who gave  years of service?

Management has refused to rehire those who were sent home, saying they already received  compensation. But compensation does not replace a career. It does not replace stability. It does  not justify why experienced local workers were let go while new hires are brought in at  significant cost. Another extremely serious matter that cannot and must not be ignored is the  instruction reportedly given by Mr. Hato to Vida Nova to deduct both the employer’s and the  employee’s AOV contributions from the salaries of the employees who were sent home. This  action raises major legal and ethical concerns. Vida Nova is now claiming that they are not the  employer, and for that reason the full contribution must be carried by the employees. That  position is deeply troubling and, in the view of the union, amounts to a clear violation of the law  and a form of financial abuse against workers who are already in a vulnerable position.

The law of St. Maarten clearly states that AOV contributions are to be shared between employer  and employee. An employer cannot shift its legal obligation onto the worker. The employer’s  portion is not optional, and it cannot be passed down to employees simply because they were  sent home. These workers were employees of TelEm, not employees of Vida Nova. Therefore,  the responsibility for the employer’s share of contributions cannot legally be transferred onto  them.

Furthermore, the last salary payments and all related obligations should come from the employer.  Employees did not enter into employment with Vida Nova, nor did they agree to assume the  employer’s legal responsibilities. For workers who have already lost their jobs to now be forced  to carry both sides of a mandatory contribution is not only unfair, it appears to be in direct  conflict with the legal framework of St. Maarten.

This matter demands immediate investigation and urgent intervention. This is not a minor  administrative issue. This concerns compliance with national laws, the protection of workers’  rights, and the proper handling of mandatory social contributions.

Ministers must wake up and take action. Allowing this to continue sends the message that  employers can ignore their legal obligations while employees are left to carry the burden. That  cannot be accepted in a country governed by law. Employees are awaiting their refund.

At the same time, NTCS continues to make presentations and projections, but the reality remains  unchanged: the Fiber to the Home loan and other debts are still unpaid. Presentations do not pay  debts. Presentations do not rebuild trust. Presentations do not bring people back to work.

Another question that demands urgent and transparent answers is this: of all the money being  paid to consultants and foreign labor, how many of these individuals are actually paying taxes in  St. Maarten? How many are contributing to SZV, AOV, and the very systems that support this  country?. If these individuals are not properly registered, not paying taxes locally, and not  contributing to social funds, then this represents not only a serious imbalance but a potential  violation of the financial and labor laws of St. Maarten. The people of this country deserve to  know whether public and company funds are being used to benefit individuals who are not even  contributing back into the economy, while loyal local workers were pushed aside. This is a  matter of fairness, legality, and national responsibility, and it cannot continue without scrutiny.

Employees also continue to question past decisions and investments that never appeared to  deliver real returns for the company. Concerns have long surrounded ventures that reportedly did  not generate income, yet required attention and resources. Smitcoms Dominicana the cartoon  company that was managed by the former CTO Eldert Louisa. Where is the accountability? There are also lingering questions about major operational moves, including the handling of the  Cable TV business, which disrupted livelihoods and left employees and customers facing the  consequences. Workers lost their jobs and security, and once again, those decisions were  approved at the highest levels without visible accountability.

The pattern is impossible to ignore. Employees lose their jobs. The company sinks deeper into  debt. Leadership changes hands. And still, no one is seriously questioned, no one is held  responsible, and no thorough public explanation is given. How can so many employees lose  everything because the company claims it has no money, while spending continues in other areas  without scrutiny? How can this continue year after year without a full, independent investigation  into the decisions made by the board and executive leadership?

This is not just a management issue. This is a governance failure.

TelEm is a government-owned company. That means the government has a duty to protect it, to  protect the people who work there, and to ensure that proper oversight is exercised at all times.  Instead, what employees and the public have witnessed for years is silence, delay, and approval of decisions that continue to weaken the company while hurting the very people who kept it  running.

The people of St. Maarten deserve answers. Employees deserve justice. And the country  deserves transparency and accountability from those entrusted to protect its institutions.  Continuing to look the other way while the same patterns repeat is not leadership , it is neglect.

Today, TelEm has a major switch located in Curaçao, a decision that raises serious and troubling  questions. St. Maarten has endured multiple natural disasters over the years, including some of  the worst in its history, and in those critical moments’ communication was restored without the  need for any core switch or essential equipment being based outside of the country. Placing such  important infrastructure in another island creates a dangerous dependency and a potential  vulnerability for St. Maarten, especially in times of crisis when communication is most critical  for public safety, emergency response, and national stability.

At the same time, there are growing concerns that Aqualectra in Curaçao is preparing to launch a  telecommunications company and is seeking information from TelEm regarding the systems and  operational structure it uses. This raises serious red flags. A government-owned company that is already struggling financially should not be in any position where its knowledge, systems, or  technical direction could potentially benefit the creation of a competing operation elsewhere,  especially while it continues to carry debt and uncertainty at home. 

What makes this situation even more alarming is the belief that efforts are being made, with the  involvement and support of the acting CFO, to assist in this process while TelEm itself remains  in a fragile and vulnerable state. Employees fear that decisions are being made that could weaken the company’s long-term position, and possibly leave it exposed, just as it was during previous  periods of poor leadership. St. Maarten simply cannot afford another round of financial damage  or strategic missteps. 

Employees fear that TelEm’s services may soon be outsourced to Curaçao, which would leave  local workers without jobs and hand over critical operations to another country as if St. Maarten  is incapable of managing its own telecommunications. This is not just poor planning, it is a  deliberate financial strategy that puts profit and convenience over the livelihoods of St.  Maarten’s people. Outsourcing in this manner threatens national control over essential services,  weakens the local economy, and sends a chilling message to dedicated employees: years of  loyalty and hard work mean nothing when decisions are made to benefit outsiders at the expense  of the local workforce. The government must recognize that allowing such a plan to proceed is  not only irresponsible but a direct attack on the country’s financial independence, local  employment, and the security of its critical infrastructure.  

This is why the government’s continued delay in appointing a strong, independent local CEO  and a full leadership team is so serious and dangerous. Without proper leadership in place, one  individual is left to control critical decisions that affect the company, its future, and the country’s  communication security. That is not healthy governance, and it puts St. Maarten at risk. 

There are capable, experienced, and dedicated professionals within TelEm right now who have  kept the company running through some of the most difficult times in its history. These are the  same employees who maintained operations during disasters, who restored services when  systems went down, and who continue to carry the company despite uncertainty and instability.  There is talent within the organization that can be promoted and trusted to lead. Choosing not to  invest in local leadership while making decisions that increase external dependence sends the  wrong message and places the country in a vulnerable position. 

Communication is not just a business it is a national lifeline. Any decision that weakens control,  creates dependency, or risks the stability of that lifeline must be treated with the highest level of  seriousness. The longer the government delays in taking firm action, appointing proper  leadership, and ensuring that the company’s direction is focused on strengthening St. Maarten  first, the greater the risk becomes for the country, its people, and its future. 

Ministers, stop playing politics. Wake up and take the bull by the horn. The time for talk,  excuses, and delays has passed. What is needed now is immediate, decisive, and responsible  action to protect TelEm and, by extension, the country. 

A complete reset in governance is necessary. All board members should be newly appointed, and  TelEm needs strong, committed local leadership. New directors must be selected locally and,  wherever possible, promoted from within the organization. The company already has  experienced, competent, and dedicated employees who have kept it running through years of  challenges, crises, and uncertainty. These are the people who understand the company, the  systems, and the needs of St. Maarten, and they should be given the opportunity to lead.

At the same time, all sharing of internal systems, technical information, and operational  knowledge with Curaçao should be halted immediately until there is full transparency and clear  safeguards in place. TelEm’s priority must be the protection and strengthening of St. Maarten’s  telecommunications infrastructure, payment of the outstanding millions and not supporting  outside interests while the company itself remains financially strained. 

This is not a small matter. This is about the survival of a national company, the protection of  local jobs, and the safeguarding of a critical service that the entire country depends on. The  government must act now firmly, responsibly, and in the best interest of the people, before the  damage becomes irreversible. 

The union calls on the government to stop delaying and to take immediate, decisive action to  protect TelEm and its employees. Enough is enough. The people who have kept this company  running through years of mismanagement, debt, and uncertainty deserve answers, not empty  promises. The government must clearly state when action will be taken and exactly what steps will be implemented to restore stability, enforce accountability, and safeguard local jobs.

The  appointment of competent local leadership, financial recovery measures, and protections for  employees. Anything less is a blatant failure of responsibility, a betrayal of the workforce, and a  serious threat to the future of St. Maarten’s critical telecommunications infrastructure. The time  for talk is over, the time for action is now. 

From SMCU President
St Maarten Communication Union