Transcript of " Mr ir. Julius A. Lambert Sends In His Resignation Letter To GEBE"
To. : GEBE Shareholding Foundation Walter Nesbith road # 35 Philipsburg, St. MaartenAttn.: Mr. Ralph Richardson, Chairman St. Maarten, March is, 2012Dear Sirs,In 19811 started employment with GEBE as a technical employee, where I worked at the power plant inCay Bay. After several years of committed service to GEBE in serving our community, I was appointed asInterim Director of GEBE in February 1993 and one year later in February 1994 I was appointed asManaging Director, where I served our community as Managing Director of GEBE until December sr.2006.However, because of reasons of a personal nature, I informed the then Supervisory Board of GEBE inmid-200s that I intended to retire a year earlier at the end of 2005, one year before my pension age.The Supervisory Board asked that I hold on for the extra year. Despite my personal issues, I conceded tothe request of the Supervisory Board and continued to work as Managing Director of GEBE untilDecember 31St, 2006.My years as Managing Director of GEBE were very rewarding years for me and the personnel of GEBE,because we jointly made major improvement in the overall management of the company, we improvedthe quality of service and efficiency of the company, thereby achieving significant reduction in the utilityservices to our consumers: 1. During this period the GEBE electricity and water rates were the lowest of all the islands of the former Netherlands Antilles. 2. A benchmark study performed in 2004 among the regional utility companies ranked GEBE as one of the utility companies with the lowest utility rates in the region. 3. An operational audit on GEBEwas performed by SOAB in 2004/2005, which concluded in the following statement by the Management of SOAB "that of all the government owned companies that they audited throughout the years in the former Netherlands Antilles that GEBE was the best managed government owned company".These and many other achievements had a very positive effect on the morale of the personnel of GEBE.However, today we must conclude the contrary, because during the last 5 years GEBE has gone througha period, whereby the overall management and control environment of GEBE have deteriorated, theefficiency has decreased and the waste has increased, resulting in the consumers eventually having tocompensate for these losses.At several occasions during the last 10 months I have made it clear to several instances that the presentbase rate implemented on August 1St, 2011 last year is much too high, as it is based on a return oninvested capital of 12%. That this base rate is too high was also admitted to me by the consultant, whoprepared these new tariffs/rates. The consultant admitted this when he became aware of my 30 yearsof extensive and in-depth knowledge of the utility business. Such rates are creating unnecessaryhardship, particularly for the elderly and those households who besides their electricity and water billsalso have to pay house rent, etc. I look forward to the Shareholders Foundation taking a more activestance on this matter, as it only creates hardship, in particular for the less fortunate in our society, whoneeds a voice to speak and work on their behalf.i 1
In 2008 while on retirement, I was approached again in mid-200B by the then Supervisory Board of GEBEwith the specific request to make my knowledge and experience available to GEBE as a member of theSupervisory Board of Directors of GEBE. Despite my personal issue, I reluctantly and with the specificcondition that I would only be willing to function as a supervisory director, as long as I am allowed tomake a meaningful contribution to GEBE in serving our community. The Executive Council of St. hMaarten accepted this condition and by means of its letter of June 1t , 2008 made my nomination tothe Shareholder Foundation for appointment as supervisory director of GEBE and I was appointed as per thJuly 9 , 2008 as member of the Supervisory Board. During the first board meeting my colleague boardmembers unanimously appointed me as their Chairman of the Supervisory Board.Late last year I mentioned to the chairman of the Shareholders Foundation that I intended to resign as thsupervisory director of GEBE as per December last year, six months before July 8 , 2012 the date thatmy 4 years term officially ends as supervisory director of GEBE. However, with the departure of theformer Managing Director, the Supervisory Board had to appoint an Interim Director to run the day-to-day affairs of the company.After due consideration and seeing the deplorable state of affairs of the company, I realized that itwould be an irresponsible act on my part to abandon the company in December last year, therefore Ideliberately chose to stay on as supervisory director to assist the interim Director with advice during hisinterim period. The present Interim Management is working hard to turn this negative trend around.Improvements have already been made, but it will take more time to correct all what has gone wrongover the past five years period.In accordance with the articles of association of GEBE, the term of appointment of a supervisory directoris for a period of four years, which means that my term as supervisory director ends on July 8th, 2012this year.After serving GEBE and the communities of Saba, St. Eustatius and St. Maarten with much commitment,personal sacrifice and in a dignified manner jointly together with the personnel of GEBE, I inform you bymeans of this letter that I hereby with pride submit my resignation as supervisory director of GEBE witheffective date July 8th, 2012, the date of expiration of my four years term, as provided for in the articlesof association of GEBE. 2