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    Thursday, July 17
    Labor

    PJIAE employees speak out

    The PublisherBy Updated:No Comments18 Mins Read

    Editor’s Note: It would seem that since the SXM Airport CEO Brian Mingo has been fired, the employees at the airport have come to realize that nothing much has changed in regards to their circumstances. As a matter of fact, things seemed to have gotten worst. Schiphol is threatening to terminate its working agreement with the airport and if that was to happen, the airport financing for the reconstruction would be in jeopardy.

    In an email to the editor, StMaartenNews.com has received the following copy of a communique sent by seemingly disgruntled airport employees to the PJIAH holding company board. The open letter reads as follows:

    St. Maarten, May 9, 2021
    Dear Messrs. Doncher and Daniel and Ms. Hodge,
    We refer to your letter dated December 4th, 2020 referenced: PJIAH/MD/VDD-2020-033, addressed to Mr. Mingo in which you request Mr. Mingo to resign effective January 4th, 2021 and your eventual firing of Mr. Mingo on April 7th, 2021.
    As concerned employees of PJIAE we are seeking elucidation and or are making observations/giving clarifications on the following points.
    Lack of ability to move the reconstruction project of the airport forward evident as we are over three years since the terminal building has been severely damaged.
    Request for clarification: Does this lack of ability to move the reconstruction project of the airport forward have consequences for the forerunners of the present CEO namely: Mr. Michel Hyman caretaker, respectively COO and acting CEO of PJIAE (2017 – 2019) and Mr. Ravi Daryanani, CFO and acting CEO of PJIAE (2017-2018) or does their lack of ability to move the reconstruction project of the airport forward not matter?
    No consistency in your projected completion date for the reconstruction of the terminal building.
    This is quite alarming seeing the fact that it has been more than a year since the funds have been made available for the reconstruction.
    The alarming fact is that the funds have been made available less than a year ago at the time of your letter (On December 11th, 2019 to be exact) and not more than a year ago. The reasons for this must be well-known to all involved. PJIAE had to comply with certain requirements from the WB first. Requirements that had to be in place long before Mr. Mingo started at PJIAE.
    We trust Mr. Doncher that you were diligently working to see that those requirements were met in the past as well. However, circumstances must have worked against them being complied with.
    As the project timelines continue to shift under your leadership, all stakeholders (both locally as internationally) continue to express their concern in your ability to align your vision with those
    of the Shareholder and other stakeholders involved in terms of getting the airport up and running before possibly being faced with yet another catastrophe.
    It is a pity that you were not informed, Mr. Doncher, of all that needed to take place and rearranged for the money to be made available and how that impacted the project timelines.
    We were all hoping and praying that PJIAE would have been spared yet another catastrophe, yet Covid-19 made its grand entrance. We are sure you must understand the Covid-19 pandemic issues and the effect this had on PJIAE, in its recovery phase from the Irma devastation, and by extension on the whole island, so we will not bore you with the details. 
    The current general sentiment expressed by all is that PJIAE is failing under your leadership tenure thus far and by extension the economy on the whole of this island, which solely depends on tourism. The general sentiment which is also shared by the undersigned can be summed as follows, which list is not exhaustive:
    1. Lack of real progress of airport terminal reconstruction;
    2. Your vision for PJIA not aligned with vision of Shareholder and Government;
    Request for clarification:
    As there were no consequences for the following:
    –          Capital improvement plan 2013.
    –          Resurfacing of the runway.
    –          Construction of taxiways.
    –          Expansion of the aprons to provide additional aircraft parking.
    –          Relocation of various facilities to improve efficiency and provide future growth.
    –          FBO.
    –          PJIAE fire station.
    –          Substation government fire station.
    –          Renovation cargo building.
    –          Relocation fuel farm.
    –          Relocation Goddard catering.
    –          Going on a trip to Dubai to receive a reward for which we had to pay a fee.
    –          Renting of tents immediately after the hurricane > $50K monthly, are we to understand that these are aligned with the vision of the shareholder and government?
    3. Non-cohesive relationship with fellow Managing Board members;
    Fact: Please note that the trend of non-cohesive relationship with fellow Managing Board members started with the previous Managing Board consisting of Mr. Daryanani CFO/acting CEO and Mr. Hyman COO. Mr. Daryanani indicated in a meeting with his direct reports not to care about the strained relationship and was not willing to do anything about it.
    The same non-cohesive relationship that existed then, exists now in the current Managing Board consisting of Mr. Mingo, CEO, Mr. van der Meiden, CFO and Mr. Hyman, COO. Please note however that the common denominator in both situations is not Mr. Mingo, but Mr. Hyman.
    It must be very hard for him to be caught up twice in these non-cohesive relationships between Managing Board members. 
    4. Strained relationship with Employees resulting in the employees’ issuance of a letter of non-confidence in you;
    Again, history repeats itself. The strained relationship with employees resulting in the employees’ issuance of a letter of non-confidence was also a fact under the leadership of Mr. Hyman.
    A copy of the letter is attached for ease of reference.
    5. Your latest presentation to the Shareholder and COM (November 12, 2020) outlining the increase in reconstruction budget cost from USD $107 to $119 Million or an increase of USD $12 million allegedly due to indexation rates and additional project costs, that will continue to be an issue seeing the delay in the reconstruction;
    We trust in your ability to understand the reasons for the delay that are based on the pandemic or so-called acts of God and have nothing to do with the leadership qualities of the Managing Board headed by Mr. Mingo.  
    Furthermore, you have shown a lack of interest in pursuing the necessary steps in realizing the much-needed US Pre-clearance for the airport,
    Anybody with a bit of business acumen and common sense would know and realize that time, effort, and resources dedicated to the much-needed US Pre-clearance would be a waste of valuable time effort and scarce resources and would prioritize to get PJIAE back on its feet.
    The relocation of the Fuel Farm has not been effectuated, the establishment of a New Fuel Farm has not been done,
    Points of clarification: Discussions about relocation of the Fuel Farm started even before or during 2010. As a reminder, the funds for the relocation of the Fuel Farm were secured in the 2012 bond loan and were thus to be effectuated in the years immediately following the securing of that 2012 bond loan. Mr. Doncher, you were present at the signing in 2013.
    Clarification request: Did you demand the resignation of Ms. Labega because this relocation did not happen in 2013, neither in 2014, 2015 nor in 2016? Was Mr. Hyman asked to resign or reprimanded as this relocation was not effectuated under his leadership either (2017)? What about Mr. Daryanani (2018)? Was he even reprimanded for not effectuating the relocation of the fuel farm?
    By the way, what happened to the funds so secured? Does PJIAE still have those funds to effectuate the relocation of the fuel farm were they wanting/willing to start now?
    The much-needed Fixed Based Operations (FBO) building for which a contract was already signed has not been done and the list goes on.
    Points of clarification: Funds for the FBO were also secured via the 2012 bond loan as mentioned at the previous point.
    During the years 2013, 2014, 2015, 2016, 2017 and 2018, this much-needed FBO building was not effectuated, even though the funds were secured with the 2012 Bond loan and the happy signing took place in January of 2013.  According to previous press releases, bids were to be submitted by January 2015.
    Furthermore, in 2017, on November 10th, 2017 to be exact, while PJIAE and by extension the whole island was still in the throes of the devastation caused by Hurricane Irma, a groundbreaking ceremony of the FBO building was held. The project was set to be completed within 18 months. A deposit was made. A temporary second floor on the existing building was also to be constructed.
    Clarification request:
    Were there any consequences for those in charge during the years 2013 up till 2019, when Mr. Mingo took over, who didn’t effectuate the FBO?
    What happened to the project for which bids were to be submitted in January 2015? What happened to the project in the thirteen months after the groundbreaking ceremony in 2017 and before Mr. Mingo started? What happened to the deposit made? Were those charged with effectuating the FBO then requested to resign or are there no consequences for them? Or are they the poor victims of the strained relationship in the management board?
    Regretfully, we must inform you that this situation can no longer be sustained. Based on the preceding points and a growing lack of confidence in your ability to move the company forward, lack of progress on the reconstruction of the terminal building, your failure to foster a good working atmosphere with your colleagues, employees, and the stakeholders amongst others, we strongly request that you tender your resignation by the end of today’s date December 4, 2020 effective January 4, 2021.
    Request for clarification:
    What is the role of the Supervisory Board of Directors (SBOD) in this?
    Isn’t it true that the SBOD has the supervisory, advisory and probatory role towards the Managing Board?
    Does the above-mentioned situation which can no longer be sustained have consequences for the SBOD as well?
    Does this mean that they also failed to guide the Managing Board? Will the SBOD also be requested to resign?
    Shouldn’t the appellation on Mr. Mingo to resign and subsequent firing have come from the SBOD?
    Shouldn’t the SBOD PJIAH listen to the recommendations of the PJIAE SBOD before taking these types of decisions?
    Are the roles of the SBOD of PJIAH and PJIAE respectively separate or intertwined?
    How is your relationship with the other members of the Managing Board?
    Should there uberhaupt be a relationship between the Managing Board and shareholder besides those mentioned in the corporate governance code?
    Respectfully,
    Names withheld for fear of retaliation.
    ###
    Photo caption: File photo of airport workers protesting on July 1, 2020. Photo by Jacqueline Hooftman.
    Editor’s Note: There is more to this article. Paying subscribers can log in to read the attached previous letter to the editor that also accompanied the above open letter to the PJIAH holding board.

    Dear Editor,

    We, the employees of the Princess Juliana International Airport, have decided to speak out about the injustices, and the mismanagement that has been going on at the airport since the COO and acting CEO, Michel Hyman took over management of the airport.

    We still do not understand how the government can appoint such a person, with only a high school diploma to run such an organization that is the main income driver to the economy of St. Maarten. His lack of education, knowledge, and experience is now evident and it shows that he can’t manage the airport and its employees. Look at the state of the airport. Just come down to the airport and look at it, and look at how it is being managed. Enough said!

    At the moment there is a great divide between management and employees, where all of us are extremely dissatisfied working under these conditions. Mr. Hyman went on the radio and announced that no employees are being dismissed or fired, and that the airport has capital to pay the employees. Then he turns around and starts firing people for no reason. Also firing many Security employees for an incident of miscommunication that took place, without properly investigating the incident. He is telling the employees that the airport has to scale down, but yet he is traveling to Abu Dhabi for no good reason under these circumstances. If the airport has to scale down its finances and fire people, then why did he have to travel on a $25,000.00 trip to Abu Dhabi to pick up an award??? Is that what is important now? An award that was earned by the former managing director, Ms. Regina LaBega, not the current director. Our question is, why was this necessary, seeing the circumstances, seeing the state of the airport? Seeing that employees are being sent home for no reason, how is this a priority?

    Security employees are being sent home at the airport, but yet Mr. Hyman is paying his friends, for example, Ottley Construction $220,000.00 for 10 days work? And there’s more! What is even more alarming is that these things are happening without the proper Supervisory Board approvals, but the Board seems to be allowing it, and has not said one thing about it, so far.

    In the end, we can’t only blame him. We have to question the persons responsible for putting such an unqualified person to run the airport. Brian Mingo was selected to be CEO and he has not been appointed yet. We knew who Mr. Hyman was from before he was appointed, and he is doing exactly as expected. He is managing the airport based on vindictiveness, emotions, and self interests only. Sound decisions and proper communications are certainly not the order of the day. This is why the airport cannot get up and running yet, because sound decisions are not being made based on the right values, and because all the employees are disgruntled. Mr. Baker who had worked at the airport for many years, has 2 Masters degrees and years of experience was overlooked for this position. This is why he left the company because he did not want to work for someone he knew that could not manage. This is also why Ms. Migdala Clarinda left the company, because she knew that he was a mad man, that wants to play dictator with the employees at the airport.

    As a result international and local travelers have to travel in and out of Sint Maarten in a situation that look like we are some type of third world country. We were waiting on the Parliament meeting called, but has now been postponed. When is the parliament of Sint Maarten going to handle our business?

    Dissatisfied Employees at PJIAE

    ###

    Editor’s Note: And there is more….. Via social media we at StMaartenNews.com received a copy of the following letter apparently from the PJIAE airport operating company board chair to the Council of Ministers regarding the functioning of the managing director of the managing board of the PJIAH holding company.

    See below for a copy of this letter…

    Your Excellencies,

    We are compelled to draw your attention to the several requests made by the Supervisory Board of PJIAE N.V. (the “SBOD”) to the Minister of TEATT, Prime Minister and/or COM to intervene at the PJIAH N.V. (“PJIAH”) level based on PJIAH’s actions in recent months which evidence an increased disregard for proper corporate governance.

    The SBOD is deeply concerned that the non-intervention of government up to now is allowing these practices to continue which has grave consequences. Most notably, the very real risk that RSG will terminate its cooperation, which can subsequently result in the existing favorable WB/EIB financing arrangement being withdrawn, which in turn will critically delay or jeopardize completion of the Reconstruction Project. The SBOD refers to RSG’s recent communication in that respect (6 May 2021 and 9 April 2021). We also attach and refer to the letter from the CFO dated 6 May 2021 (on which the COM was copied), warning of some of the (financial) risks if RSG terminates the cooperation.

    There is much misinformation out there about the WB/EIB financing and (benefits of) alleged alternative financing. The SBOD urges the COM to focus on facts only and in this email the SBOD highlights some of the relevant facts with respect to the WB/EIB and non-existent benefits of alleged alternative financing.

    Should the WB/EIB financing be withdrawn, any new loan arrangement (if available) will have less favorable terms. Based on a relatively favorable pre-Irma commercial loan proposal (which only considered refinancing of the Indenture pre Irma and pre COVID-19 and did not consider the company’s current financial position, i.e. now the cost would be even higher), a new loan can cost the Airport in the order of an additional US$ 130 Million over the next 15 years compared to the existing WB/EIB financing. Your Excellencies should consider the following:

    ·        A new loan will require, for the first three (3) years, $ 17 million more cash outflow since a new loan will require immediate full debt service at a time that the Airport is projecting serious cash flow constraints until (at least) 2024. The current arrangement with the EIB loan has interest only until 2027 at a subsidized rate of 50% effectively until repayment of the principle starts. The unsubsidized interest is very favorable and is expected to be 2.5% (principal repayment starts after 2028 when the indenture is repaid). Note that this is at least 3% less than a favorable commercial loan (if even realistically available).

    ·        BZK is paying EUR 2 million for RSG support, including but not limited to back office and project management support.

    ·        Replacement of the WB/EIB funding requires approval of the bond holders, Alternative financing requires collateral, and it is unlikely that the bond holders will agree. It is more likely that they will require complete refinancing of both the indenture and the WB/EIB package. That means that PJIAE would have to raise at least US$ 220 million (this is an indicative estimate) on the market but likely more. That would replace the outstanding principal on the indenture of US$ 76 million and the US$ 122 million financing package from the WB/EIB loan. Moreover, there will be refinancing costs and additional funding needed for the debt service accounts under a new agreement.

    ·        Alternative financing will delay the Reconstruction Project since a new financing process will have to take place, which might take up to six months (or more) to complete, including due diligence and inevitable negotiations that will need to take place.

    ·        With no funding in place during the time required to secure and finalize refinancing, the current tender cannot be awarded, and the bids will expire. That means the tender process will have to start all over again, pushing back the start date for Reconstruction even further.

    ·        In the event the WB and EIB withdraw financing for the Reconstruction Project, technical and financial support from RSG will also stop immediately, without a Reconstruction Project finance controller in place. One would therefore have to be recruited without delay.

    ·        Termination of the Schiphol (RSG) agreement also means termination of the present service agreement with the CFO with immediate effect, leaving the Management Board with only the COO in place to take care of the CFO and CEO tasks until a new CFO and/or CEO is recruited. Looking at (the consequences of) post Irma management (which was the current COO for approximately half a year and then for a year the current COO and former CFO Mr. Daryanani) as set out in the EY Baseline report (which, based on the statements in Parliament, the SBOD assumes the COM has), that would be highly irresponsible.

    In short, we re-emphasize that by allowing the corporate governance violations from the PJIAH to continue, the COM is risking, amongst other disadvantages, that the existing favorable WB/EIB financing arrangement will be withdrawn which will seriously delay the airport reconstruction with at least 6 months and cause the Airport to pay at least US$ 130 million more in cash outflow over a period of 15 years.

    The SBOD looks forward to a meeting with the COM tomorrow 10 May 2021, where the SBOD can fully express its concerns in a face-to-face setting. We are confident that a thorough review of the multiple emails the SBOD has sent to the Minister of TEATT, the Prime Minister and the COM regarding the governance violations by PJIAH will lead you to conclude that re-establishment of proper governance in a structural manner is required and that past governance violations have to be dealt with and corrected.

    Unless the COM heeds our warnings and takes appropriate action at the PJIAH level there will be grave consequences for the Airport and the people of St. Maarten. We again strongly urge Government to take a decisive stand in the interest of the people of Sint Maarten since there is absolutely no justification to continue to tolerate PJIAH’s many flagrant violations of corporate governance and to allow PJIAH to eventually bankrupt the company.
    We thank your Excellencies for taking time out of your busy schedules on short notice to meet with us in the interest of the Airport and the country.
    Sincerely

    The SBOD,
    Kamla Besançon, Chair
    Clarence Derby, Vice-Chair
    Helma Etnel
    Alain Maca

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