POND ISLAND--St. Maarten Telephone Group of Companies TelEm and regional telecom company Digicel are said to have signed an agreement to share financial information and pursue further talks. The agreement is said to be a precursor to possible merger talks between the two companies.
It is unclear at this point what will happen with the partnering talks TelEm already had underway with United Telecommunication Services (UTS).
St. Maarten is entitled to between 12 and 25 per cent of UTS' operation as a result of the dissolution of the Netherlands Antilles. Based on the country's shares in the company and the similar corporate culture, the UTS talks were somewhat welcomed in St. Maarten.
News of TelEm's signing with Digicel, though preliminary, has sent some shock waves through the local company and all the way to Parliament.
It is understood that several Members of Parliament are none too pleased with this signing.
According to people close to the issue, the signing could be considered disregard for the motion passed by Parliament on September 8 that instructed Prime Minister Sarah Wescot-Williams to inform all ministers not to make any decisions that could encumber the incoming government.
That instruction also called on the prime minister to tell ministers who are shareholder's representatives for government-owned companies to instruct the directors of those companies not to sign any agreement that could have an impact on the companies or have consequences for the incoming government.
Wescot-Williams is the shareholder's representative for TelEm.
