PHILIPSBURG--The St. Maarten Communication Union says the presentation of Huawei as a preferred solution for TelEm raises serious national security and strategic concerns, warning that the company is already in a vulnerable financial position and facing what it describes as a state of crisis.
In a statement issued by SMCU President Nataly Frans in response to Chief Financial Officer, of TelEm Randell Hato, the union said 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 unauthorised access to sensitive information, potential cyber-espionage and long-term dependence on foreign technology providers for core systems.
The union stressed that telecommunications networks carry government communications, emergency services data, financial transactions and private citizen information. If such systems are exposed, compromised or controlled from outside the country, the consequences can be severe. Despite global warnings and actions taken by major nations, SMCU said Huawei was presented as the preferred solution for TelEm.
According to the union, the risks are not only technical but strategic. Heavy reliance on external technology providers could make TelEm vulnerable to geopolitical tensions, service disruptions and data security threats. In the event of global conflicts or trade restrictions, access to systems, updates, parts or technical support could be affected, potentially disrupting operations and continuity of service. This, SMCU stated, could expose critical communications infrastructure to external pressures beyond national control, with negative impact on data safety, network reliability, local jobs and technical independence.
Frans said the union’s press releases are not intended to create conflict or provoke a back-and-forth with TelEm’s management, but to highlight what it called a serious and dangerous situation. The union reminded all parties that Telem is a public company belonging to the people of St. Maarten and must be managed with full accountability, transparency and in the national interest.
SMCU acknowledged serious concerns regarding TelEm’s financial situation, but stated that it has intentionally refrained from publicly disclosing sensitive financial details in order to protect the company’s competitive position in a highly competitive market. It emphasised that without the necessary financial resources, TelEm will be unable to address critical areas requiring immediate attention, jeopardising its long-term strategic goals and operational effectiveness.
The union also raised concerns about the sharing and outsourcing of services and customer data with Curaçao, while noting that the CFO continues to act in the role of CEO. It referenced past experience when both positions were concentrated in one individual, after which Telem was left carrying millions in debt.
Currently, SMCU said, the company has experienced bank overdrafts, refinancing has added further financial pressure, and major projects such as the fiber-to-the-home initiative remain incomplete despite significant investment. 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 must be paid.
“These are not isolated issues but signs of a company in a very vulnerable financial position,” the union stated, adding that the situation appears to be operating without clear direction or accountability while the burden of debt continues to evolve.
SMCU maintained that the only responsible and credible way forward is the commissioning of a full and independent forensic audit to establish Telem’s true financial condition. 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 union warned, Telem risks continuing in a cycle of uncertainty and financial decline, further weakening the company and placing its future at greater risk.
Frans said it is imperative to recognise that a company burdened with over 50 million in debt for several years is in a state of crisis. The full extent of the 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,” the statement said, urging government to commission a full and independent forensic audit and take decisive action before the damage becomes irreversible.
The board of SMCU said it is willing and prepared to meet with Hato and TelEm’s management to discuss the company’s situation. It reiterated that 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, the union stated, there should be no reason to oppose such an audit, adding that transparency and accountability are essential to protect the company, its employees and the public interest.
