PHILIPSBURG--The Government of St. Maarten has made good on its promise and has worked out a solid plan to settle the outstanding debts to Social and Health Insurances SZV and General Pension Fund St. Maarten APS that has built up over the past five years. Government has signed an agreement allowing SZV to purchase the new Government Administration Building on Pond Island. SZV will renovate and furnish the building then rent it to the regime once completed until government can buy it back from them.
The debts owed are estimated to total more than NAF. 160 million between the two organizations.
Minister of Finance Richard Gibson said that all parties were able to come to an arrangement and for the first time an historic agreement has been made. “The new building and the land have to be transferred to SZV as part of compensation to the debt we have to them. A portion of that money will also be paid to APS to reduce their claim on government. We will have the option to buy back the building.”
“In the agreement it is also pledged that funds we are to get from assents from the former Netherlands Antilles will go towards both organizations. The outlook is that in three years’ time this debt will be paid off. We will rent the building from SZV at the rate of six per cent of what the value of the building is. Six per cent of whatever was spent from SZV will be paid in rent to the health care organization. This will be a substantial decrease of rent being paid presently by government,” said Gibson.
Government is spending NAF. 1.2 million in rent for its offices and plans to pay close to NAF. 400,000 when they move to the new building.
Prime Minister William Marlin told reporters that he was elated that an agreement was reached between the parties and thanked the Minister of Finance Gibson for his excellent negotiating skills and special gratitude to Franklyn Richards of APS and Glen Carty representing SZV. He said Government was providing the details of its plans to settle the APS and SZV debts as part of Government’s open and transparent policy.
“The responsibility now shifts to facility management which falls under my ministry. We will work close with SZV to make sure that everything is done to the satisfaction of government. A move-in plan has to also be put in place and we are looking towards August or September to move our people. I would rather July but no pressure to SZV,” said the Prime Minister.
The Committee of Financial Supervision CFT instructed the government since 2015 to come to an agreement with the two organizations to settle the outstanding debt as soon as possible. This is the reason the William Marlin Cabinet had this project as a priority for its government.
