Does St. Maarten have a Corporate Governance Council (CGC)? That’s the question a few persons are asking in light of recent developments at both utilities provider GEBE and National
Institute for Professional Advancement (NIPA).
The latter is a Government-owned foundation rather than company, but falls under the Council’s scope according to the National Ordinance to establish the CGC when country status went into effect per 10-10-10. It must be said, the advisory body was severely hampered in its functioning from the beginning due to a lack of adequate facilities, finances and personnel.
However, the former Marcel Gumbs Cabinet announced last November that about NAf. 240,000 had been made available to cover operational and staff costs, a permanent office was opened in the Lea Complex on Cannegieter Street in Philipsburg and the budgets of 2015 and 2016 were approved. It was said at the time that the public could now expect “a more visible” CGC, but that hardly seems to have happened so far.
To be sure, while the Council must be consulted on naming and dismissing board members, that is not the case for directors and other managers. Their appointment is the shareholder’s responsibility, but based on nominations from the boards.
Nevertheless, in addition to advising the Minister as shareholder representative at his or her request, CGC can make recommendations on subjects in the ordinance at its own initiative. Those areas include setting a proper dividend policy, which appears to be missing in most local Government-owned companies making a profit.
Perhaps the Council could be a bit more proactive in helping to address some of the continued issues at these entities that were put “at arm’s length” from local politics for good reason, but evidently still require the necessary guidance and control. It’s a matter of checks and balances.
