Mr ir. Julius A. Lambert Sends In His Resignation Letter To GEBE

1. To. : GEBE Shareholding Foundation
Walter Nesbith road # 35
Philipsburg, St. Maarten
Attn.: Mr. Ralph Richardson, Chairman
St. Maarten, March is, 2012
Dear Sirs,
In 19811 started employment with GEBE as a technical employee, where I worked at the power plant in
Cay Bay. After several years of committed service to GEBE in serving our community, I was appointed as
Interim Director of GEBE in February 1993 and one year later in February 1994 I was appointed as
Managing 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 in
mid-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 to
the request of the Supervisory Board and continued to work as Managing Director of GEBE until
December 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 improved
the quality of service and efficiency of the company, thereby achieving significant reduction in the utility
services 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 through
a period, whereby the overall management and control environment of GEBE have deteriorated, the
efficiency has decreased and the waste has increased, resulting in the consumers eventually having to
compensate for these losses.
At several occasions during the last 10 months I have made it clear to several instances that the present
base rate implemented on August 1St, 2011 last year is much too high, as it is based on a return on
invested capital of 12%. That this base rate is too high was also admitted to me by the consultant, who
prepared these new tariffs/rates. The consultant admitted this when he became aware of my 30 years'
of extensive and in-depth knowledge of the utility business. Such rates are creating unnecessary
hardship, particularly for the elderly and those households who besides their electricity and water bills
also have to pay house rent, etc. I look forward to the Shareholder's Foundation taking a more active
stance on this matter, as it only creates hardship, in particular for the less fortunate in our society, who
needs a voice to speak and work on their behalf.
i 1

2. In 2008 while on retirement, I was approached again in mid-200B by the then Supervisory Board of GEBE
with the specific request to make my knowledge and experience available to GEBE as a member of the
Supervisory Board of Directors of GEBE. Despite my personal issue, I reluctantly and with the specific
condition that I would only be willing to function as a supervisory director, as long as I am allowed to
make a meaningful contribution to GEBE in serving our community. The Executive Council of St.
h
Maarten accepted this condition and by means of its letter of June 1t , 2008 made my nomination to
the Shareholder Foundation for appointment as supervisory director of GEBE and I was appointed as per
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July 9 , 2008 as member of the Supervisory Board. During the first board meeting my colleague board
members unanimously appointed me as their Chairman of the Supervisory Board.
Late last year I mentioned to the chairman of the Shareholder's Foundation that I intended to resign as
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supervisory director of GEBE as per December last year, six months before July 8 , 2012 the date that
my 4 years' term officially ends as supervisory director of GEBE. However, with the departure of the
former 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 it
would be an irresponsible act on my part to abandon the company in December last year, therefore I
deliberately chose to stay on as supervisory director to assist the interim Director with advice during his
interim 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 wrong
over the past five years' period.
In accordance with the articles of association of GEBE, the term of appointment of a supervisory director
is for a period of four years, which means that my term as supervisory director ends on July 8th, 2012
this 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 by
means of this letter that I hereby with pride submit my resignation as supervisory director of GEBE with
effective date July 8th, 2012, the date of expiration of my four years' term, as provided for in the articles
of association of GEBE.
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