Presented at the territorial council meeting on November 30th, the annual report of the SEMSAMAR allowedto present the progress of the projects to elected officials carried out for the Community, but also the financial situation of the mixed economy companyA presentation now mandatory since the 3DS law (Law of 21 February 2022 relating to differentiation, decentralization, deconcentration), intended to strengthen the information provided to the shareholder community and the control over its representatives.
Created in 1985SEMSAMAR remains majority-owned by the Collectivity of Saint-Martin (51%). Present in Guadeloupe, French Guiana and Martinique, it is involved in development, construction and rental management, its core business. In 2024, it injected 94 million euros into local economies, across all territories.
But the financial results are deteriorating sharply.Since 2022, the company has been severely impacted by the sharp rise in interest rates, indexed to the Livret ABetween 2022 and 2024, the Financial expenses have increased by 15 million euros. The net result thus shows a deficit of 13,4 million euros in 2024.Rents do not compensate for the increase in charges, particularly affecting rental management activity in territories where the housing stock is large, such as Guadeloupe or French Guiana.
Despite this context, SEMSAMAR continues the major projects entrusted to it by the Community Reconstruction of the 900 and 600 school buildings, the future administrative complex, the rehabilitation of the media library, the renovation of the RN7 highway, and the reconstruction of the Sandy Ground community center are all underway. Several independent projects are also progressing, such as the Papillon residence and the Spring 2 development project in Concordia.
The political debate has become heated over the financial situation. While Chairman Louis Mussington maintains that the company “remains solid” and capable of continuing its investments, Daniel Gibbs denounced a lack of precise information and pointed to “political decisions” that have exacerbated the debt. Other elected officials emphasized that financial charges do not explain everything and that operating income alone cannot absorb such an increase.
Management acknowledges the unprecedented situation, linked to soaring interest rates, while reiterating that the local authority has never been asked to guarantee the loans. “The goal is to continue growing SEMSAMAR,” concluded Steven Cocks, assuring that the key projects will be completed.
A controversial amendment to reallocate over €20 million in investments.
Also on November 30th, the Territorial Council of Saint-Martin adopted, following a particularly lively debate, a amending decision (DM) aiming to adjust the 2025 budget. Presented by Jean-Sébastien Gotin, Deputy Director General Resources, this 10th deliberation The agenda item of the year, added at the last minute, aimed to realign the appropriations in order to close the financial year by financing ongoing operations as accurately as possible.
The main adjustments concern several major projects: +€2,3M for the 900 school, +€3,5M for the 600 school, +€2,6M for the media library et +€2,7m for the developments of the Savane district and RN7These adjustments are essential to enable the Community to settle the services, accelerate the production of implementation reports and, above all, secure the European co-financing associated with these operations.
During the session, the 4th VP Michel PetitThe rapporteur for the Finance and Taxation Committee reminded everyone that all these transactions are in response to the obligation to pay expenses related to co-financed projects, in order to recover subsidies and begin work before the initial budget is voted on. The elected officials present at this committee meeting had also expressed a favorable opinion during the committee meeting on November 28th.
However, the presentation did not Not all questions have been answered.Several opposition members criticized the lack of transparency regarding the overall budget structure, regretting that they had to vote without, in their view, having all the necessary information. The president Louis mussington replied that all procedures and budgetary movements had been examined by the legality check, reminding everyone that “everything voted on here is in accordance with the law”.
After tense exchanges, the deliberation was finally Approved by 10 votes to 4, with 2 abstentions.A new DM, more focused on operations, should be presented sometime in December.
Source: Faxinfo https://faxinfo.fr/en/semsamar-une-situation-financiere-fragilisee-par-la-hausse-des-taux/
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