Government Caught between a rock and a hard place
With the Airport Reconstruction Project and the firing of Mingo.
An analysis of this communiqué from government resembles that of damage control, after some members of parliament have already decided that the airport CEO must go. That decision is a political decision and it disregards the warning of the World Bank which sees such a move at this time as negatively impacting the Airport reconstruction project. See related story: https://www.cmoorejournal.com/2021/02/14/world-bank-statement-about-pjiae-terminal-project/ The World Bank issued this statement cautioning that changes or issues that might impact the successful implementation of the project must be avoided. The parliament went ahead and forced the dismissal of the Airport CEO obligating the Government to come clear about where they stand with the agreed contractual arrangement with Financiers and Donors of the Airport Terminal Reconstruction Project. This is a tough position for the Silveria Jacob’s led government to be in when it comes to completing the Airport reconstruction project. The released statement is hereafter published:
Government press statement:
Government of Sint Maarten remains committed to the continuity of the Airport Terminal Reconstruction Project. The internal changes within the Princess Juliana International Airport Operating Company’s management staff (PJIAE NV) have no bearing on this commitment. This means that the project will continue according to the current financing agreement in place. Adherence to corporate governance guidelines at Princess Juliana International Airport is a primary concern for the Government when conducting policy toward its companies.
As sole shareholder representative of the Princess Juliana International Airport Holding Company (PJIAH NV), the Council of Ministers will look into whether the proper procedures were followed with the dismissal of PJIAE NV’s Chief Executive Officer (CEO), Brian Mingo, in accordance with the Corporate Governance Code. As per the European Investment Bank Financing Agreement and the World Bank Agreement, PJIAE must inform the EIB & WB of the termination of the CEO’s contract and his replacement on the management board, and reconfirming its commitment to the continuity of the Airport Terminal Reconstruction Project.
On April 8th, the supervisory board and management of PJIAH met with members of the Ministry of the Interior and Kingdom Relations (MinBZK), to negotiate the Cooperation Agreement between PJIAH, PJIAE, MinBZK, and Royal Schiphol Group, which expires on August 1st, 2021.
The Airport Terminal Reconstruction Project will continue as per all signed agreements. The restoration of the Princess Juliana International Airport to its full potential remains a high priority for the government and people of Sint Maarten. Its timely completion is also critical to fully restore the country’s damaged economy as a result of the devastating 2017 hurricanes and the unexpected COVID-19 pandemic. The government will ensure the agreements with the World Bank and the European Investment Bank are upheld. The statement concluded.
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