Cft sounds alarm: Social funds, telecommunications and energy company GEBE under pressure in St. Maarten

PHILIPSBURG – The College financial supervision (Cft) is warning that the survival of several state-owned companies in St. Maarten is under pressure, while the social funds are heading towards a financial deficit of approximately 500 million guilders. According to the Cft, companies including TELEM, GEBE and PSS are facing serious financial difficulties and the reserves of the social insurance funds will be exhausted within a few years if action is not taken.

In a critical assessment of St. Maarten’s financial situation, the Cft states that the government still lacks adequate policy for the management of state-owned enterprises. This has allowed problems to develop at various government-owned companies.

The Cft believes the government must act swiftly. The supervisory body identifies well-functioning supervisory boards and management boards as essential to making the companies governable and financially sustainable again. The government must also enter into clear agreements with the struggling companies regarding financial viability or possible market-based solutions.

Social funds

In addition to the problems at state-owned companies, the Cft is once again sounding the alarm about the social funds managed by the Social and Health Insurance (SZV) organisation. The healthcare funds are recording an annual loss of approximately 35 million guilders.

The total deficit has now grown to approximately 500 million guilders. According to the Cft, these losses are currently being offset by reserves from other funds — primarily the AOV pension fund — but those reserves will be exhausted within a few years. As a result, both the affordability of healthcare and pensions will come under severe pressure.

The financial supervisory body states that St. Maarten can no longer afford to delay measures. The country is working on the introduction of a general health insurance scheme (GHI), which is scheduled to take effect on 1 January 2027. In addition, work is under way on a tourist tax and reforms to the tax system to increase government revenues.

Budget process

The Cft is also critical of the budget process. The 2026 budget is not expected to be adopted until halfway through the year. According to the supervisory body, this delay hampers the implementation of policy and causes investments to be repeatedly postponed.

The Cft is therefore urging the government to ensure that all ministries take their responsibility so that the 2027 budget can be adopted on time.