Gumbs says passive ownership of government companies is at an end

GREAT BAY--Minister of Finance Marinka Gumbs told Parliament today that government is moving toward a more active and accountable ownership model for its government-owned companies, saying the days of passive shareholder oversight are over.

Speaking during the presentation of the 2026 budget, Gumbs said government-owned companies remain central to the country’s financial stability, public services and economic development. She pointed to what she described as a clear contrast in the performance of these entities, with some commercial gateways showing strong results while key domestic utilities continue to face serious operational and financial risks.

The Minister referred to the May 2026 assessment of the Board of Financial Supervision, Cft, which highlighted both positive developments and areas of concern among St. Maarten’s government-owned companies.

According to Gumbs, Port St. Maarten recorded a strong 2024 net result of USD 11.2 million and paid off its historical concession to government. Princess Juliana International Airport Operating Company also posted a profit of Cg. 21.1 million following the successful completion of the terminal reconstruction.

“These entities prove that when infrastructure is properly managed, our country excels,” Gumbs told Parliament.

However, the Minister said the Cft also placed attention on the liquidity and operational pressures facing several key domestic entities, including TelEm, NV GEBE and PSS. She said these companies perform essential public functions and cannot be treated as distant or independent entities without stronger shareholder involvement.

Gumbs said government has historically lacked an active participation policy for state-owned enterprises. As a result, some companies have operated for too long without the level of oversight, accountability and strategic alignment required of entities that manage public assets and deliver essential services.

“For too long, government-owned companies operated as independent entities rather than vital public utilities that require strict oversight, accountability and long-term strategic alignment,” the Minister said. “This passive approach ends with this budget.”

The Minister outlined a policy-driven strategy focused on two main areas. The first is the formalization of an active participation policy. Government, she said, is finalizing a comprehensive framework that will establish strict reporting mandates, standardized dividend policies and unified corporate governance guidelines for all government-owned entities.

Gumbs said government will no longer wait only for annual accounts, especially in cases where some entities have not submitted annual accounts for years. Instead, the new framework will require quarterly financial reporting so that liquidity problems and other risks can be identified before they become national emergencies.

The second focus is strategic restructuring agreements with key entities. Gumbs said government is actively engaging with management and supervisory boards to execute restructuring plans tied to clear performance expectations.

For TelEm, she said this means supporting the company’s transition into a leaner and more digitally competitive telecommunications infrastructure provider.

For NV GEBE, the Minister said government’s focus will be on strict operational auditing, securing the country’s power grid against systemic failures and integrating renewable energy structures to help lower generation costs.

Gumbs made clear that government does not intend to use taxpayer money to bail out poor management or reward corporate opacity. She said any future financial interaction between government and its companies must be tied to strict and enforceable restructuring milestones.

“We are not going to use taxpayers’ money to bail out bad management or reward corporate opacity,” Gumbs said. “Any future financial interactions between government and these enterprises will be tied to strict, enforceable restructuring milestones.”

The Minister said the new policy-based budget supports this shift by connecting financial decisions to measurable outcomes, stronger governance and long-term fiscal protection.

She said government’s goal is to protect public assets, stabilize essential services, secure the national grid and reduce risks to public finances.

“The days of passive government ownership are over,” Gumbs said. “We are taking back our role as an active shareholder to protect the public’s assets, stabilize our national grid and secure our fiscal future.”

The comments formed part of the Minister’s broader 2026 budget presentation, in which she emphasized policy-based budgeting, financial discipline, public accountability and structural reform across government.

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