Claude “Chacho” Peterson.
PHILIPSBURG–St. Maarten Christian Party (SMCP) Member of Parliament (MP) Claude “Chacho” Peterson on Monday sent two letters to Chairperson of Parliament William Marlin regarding “the alarming financial developments” surrounding Princess Juliana International Airport (PJIA).
One letter concerned the re-convening of the urgent public meeting on PJIA, which was cancelled at the last minute on October 21, “for reasons yet unknown” and the other is a list of questions to Finance Minister Perry Geerlings for the second round of the meeting in question.
“As the SMCP faction in Parliament we are very concerned about the financial position of PJIA and their ability to maintain the financial obligations, specifically the payroll to their approximately 270 employees and the 1,000 plus employees of their service providers (such as Menzies, Winair, Signature, Halley Aviation, Goddard Catering, etc.) We consider this matter a National Crisis in the making, given the number of people depending on PJIA directly and indirectly to make a living,” Peterson said in the letter.
The MP urged Marlin to re-convene the meeting this week, even though it is a non-meeting week, given the precarious financial situation at PJIA and the current impasse with bondholders as described by Geerlings during the Council of Ministers Press Briefing of Wednesday, October 23.
In the second letter, Peterson sent questions in writing to Geerlings via the Chairperson of Parliament, which he wants answered in the second round.
His questions include what is the present financial situation of the Airport specifically as it relates to liquidity to pay personnel (payroll), service providers, contractors, loans and taxes and social premiums for the coming months? What is the current status of payments to bondholders? Is PJIA in default? If yes, to what degree and what are the consequences? What is the current status of the insurance pay-out based on the court case? How much has PJIA received to date? How much is pending? What are the next steps to finalise this matter?
He alluded to an article, which appeared in The Daily Herald on October 24, which stated that the Bondholders were concerned about instability. Geerlings said bondholders are concerned about the motion of no confidence against five ministers which was passed by Parliament on September 26 and whether the incoming interim government will honour the agreements with the World Bank and the European Investment Bank (EIB) or seek to reverse them. The motion of no confidence also instructed the caretaker Council of Ministers not to enter into any contracts with third parties, whether collectively or individually. The World Bank and the EIB are considered third parties. Peterson asked what steps has the caretaker government and the National Recovery Programme Bureau (NRPB) and PJIA taken to remedy this situation.
“This recent hesitation by the bondholders is clearly due to the fall of the Leona Romeo-Marlin cabinet as they are not willing to take the risks that come with this sort of instability in government created by the constant ship jumping in Parliament. A phenomenon which has plagued our island over and over since 10-10-10, resulting in eight governments and four elections in nine years,” Peterson said. “While we all talk about the Airport as being the gateway to our economy, we see the continuous sabotage of the financing option by the Trust Fund and EIB loans to the tune of US $122 million. Every delay impacts the final reconstruction date of the Airport and sends a very bad signal to many investors who still have not rebuilt since Irma or who may have been considering investing in St. Maarten. It is time we put politics aside on this issue and seek to avoid the financial crisis which will negatively impact so many of our people.”
He said SMCP will be looking towards the new majority of nine in Parliament for support in finalising the Airport financing “and prevent undue stress on the workers and service providers of PJIA.”
In the meantime, Peterson said he looks forward to receiving answers as soon as possible from the Chairperson of Parliament in reference to the letters on this matter.
The two letters were copied to caretaker Prime Ministers Wycliffe Smith, Geerlings and Tourism, Economic Affairs, Transport and Telecommunications (TEATT) Minister Stuart Johnson as well as NRPB Director Claret Connor and Governor Eugene Holiday.
Source: The Daily Herald https://www.thedailyherald.sx/islands/92054-peterson-wants-pjia-meeting-re-convened-this-week-fires-off-questions-to-geerlings
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