PHILIPSBURG--The TelEm Group has asked government to provide it with a NAf. 5 million guarantee letter, Prime Minister Dr. Luc Mercelina said on Wednesday.
He told reporters during the live Council of Ministers press briefing that government will be assisting the company, which is in dire financial straits.
"We would like to see our government-owned company survive the challenges that they are going through," Mercelina said.
Upon taking office in 2024, Mercelina was briefed on the company’s financial issues. He said the company has been losing money since 2017. “It’s good for the people to know that it’s not something of 2024,” he said.
"As I always say, don’t look backward, look forward. It’s a reality that we have now, and of course personally, and my government would like to save our government-owned companies. I think it’s great if we will have a successful national telecommunications company."
The impact of the financial challenges on employment is also a concern, and the government recognises the potential consequences for the workforce. “I am also thinking on the employment impact that it can have on a company like that for our country, and I really think that we have to step up to the plate and do what is necessary for TelEm,” said Mercelina.
TelEm has requested a guarantee letter for a loan of NAf. 5 million from government and Mercelina said government is aware of the urgency of the situation, and the minister of finance is currently considering a position on this request.
“Even though there is a request of a guarantee letter for NAf. 5 million, there is a correspondence going on about that, and our Minister of Finance [Marinka Gumbs – Ed.] is also very aware of the urgency of the financial status of TelEm, and she is now considering a position on the NAf. 5 million,” he said.
“And you have to realise though, that we have our financial challenges with our budget too. We try to neutralise and balance our budget. These are, of course, expected developments that we have to see how we are going to fit it in, to still keep a budget that will actually serve the country in a responsible way,” he explained. “I have recently discussed it with the minister of finance, and we are really contemplating this request of NAf. 5 million to see if we can assist TelEm with a financial backup.”
https://www.thedailyherald.sx/islands/telem-asks-govt-for-naf-5-million-guarantee-letter-govt-will-assist
