PHILIPSBURG, Sint Maarten — The St. Maarten Communication Union (SMCU) is issuing this response to Mr. Hato, as it is important to clearly remind all parties that Telem is a public company that belongs to the people of St. Maarten and must be managed with full accountability, transparency, and in the national interest.
SMCU is aware of serious concerns regarding the company’s financial situation. However, in the interest of protecting Telem’s competitive position, the Union has intentionally refrained from publicly disclosing certain sensitive financial details, recognizing that the company operates in a highly competitive market. It is precisely for these reasons that no detailed financial information is being disclosed publicly.
It is critical to address issues for ensuring the organization’s future success. Without the necessary financial resources Telem will be unable to address the critical areas that require immediate attention, jeopardizing its long-term strategic goals and operational effectiveness.
Mr. Hato wants some facts. Across the world, multiple countries, including Holland, have restricted or banned Huawei from participating in their telecommunications networks due to national security concerns, data protection risks, and fears of external control over critical infrastructure. Governments have warned about the dangers of unauthorized access to sensitive information, potential cyber-espionage, and long-term dependence on foreign technology providers for core systems. These are not minor concerns; telecom networks carry government communications, emergency services data, financial transactions, and the private information of citizens. If such systems are exposed, compromised, or controlled from outside the country, the consequences can be severe. Yet, despite these global warnings and actions taken by major nations, this is the company that Mr. Hato presented as the preferred solution for Telem.
The risks are not only technical but strategic. Heavy reliance on external technology providers can make Telem vulnerable to geopolitical tensions, service disruptions, and data security threats. If global conflicts or trade restrictions were to arise, access to systems, updates, parts, or technical support could be affected, potentially impacting Telem’s operations and continuity of service. This could place the country in a dangerous position where critical communications infrastructure is exposed to external pressures beyond our control. The negative impact could extend to the safety of our data, the reliability of our network, and the future stability of local jobs and technical independence. These are serious matters that require careful evaluation, strong oversight, and decisions that prioritize the protection of St. Maarten’s national interests.
Our press releases are not intended to create conflict or provoke a back-and-forth with the management of Telem. Its purpose is to highlight the serious and dangerous situation the company is facing. There are growing concerns about the sharing and outsourcing of services, and customer data with Curaçao. While at the same time the CFO continues to act in the role of CEO. History has already shown the risks of concentrating both positions in one individual, as was the case with Helma Etnel, after which Telem was left carrying millions in debt. Today, the company has experienced overdrafts with a bank, major projects such as the fiber-to-the-home initiative remain incomplete despite significant investment, refinancing has added further financial pressure, and multiple debts continue to grow. At the same time, foreign labor is being hired while qualified local workers remain unemployed, and several board members and directors have departed, leaving behind financial obligations that still have to be paid.
These are not isolated issues but signs of a company in a very vulnerable financial position. The situation appears to be operating without clear direction or accountability, while the burden of debt continues to exist and evolve on its own. The only responsible and credible way forward is the commissioning of a full and independent forensic audit to establish the true financial condition of Telem. Once there is a transparent and trustworthy understanding of the company’s real financial standing, a realistic and effective turnaround plan can be developed. Without such an audit, the company risks continuing in a cycle of uncertainty and financial decline, which will only weaken Telem further and place its future at even greater risk.
Mr. Hato, it is imperative that you take careful note: a company burdened with over 50 million in debt for several years is in a state of crisis, and the facts speak for themselves. Yet the full extent of this debt remains largely unacknowledged, while Telem’s assets continue to be dangerously exposed. This is not routine business; it is a critical situation that threatens the company’s very survival. It is long past time to confront the reality, government has to commission a full and independent forensic audit, and take decisive action to restore Telem to a stable, accountable, and sustainable path before the damage becomes irreversible.
The Board of the St. Maarten Communication Union (SMCU) is willing and prepared to meet with Mr. Hato and Telem’s management to discuss the company’s situation. The challenges facing Telem are very serious, and without an independent forensic audit, the true financial condition and the events that led to the current state will remain unclear. If there is nothing to hide, there should be no reason to oppose such an audit. Transparency and accountability are essential to protect the company, its employees, and the public interest.
