Happy Monday!

This week we cover exorbitant salaries in the state-owned electricity company contrasted with the economic woes of the poorest in the country.

Suriname was rocked by a scandal this week, as it was revealed that the director of Suriname’s state-owned electricity company (EBS - Energie Bedrijven Suriname), around 20% of the country, lives in poverty.

The company's director, Marcel Eijndhoven, has been revealed to earn around the equivalent of US$6,500 a month during his tenure.

• Marcel Eijndhoven's employment as Technical Director of NV Energie Bedrijven Suriname (EBS) has been extended by 9 months, from January 1 to the end of September, with a monthly salary of SRD 240,000.

• This salary, effective from January 2023, is based on an exchange rate of SRD 37 to the US dollar, equivalent to USD 6,486.

• Eijndhoven has been with EBS since 1986 and became Technical Director on May 9, 2012. After retirement, his employment continued through temporary contracts, with the last ending on December 31, 2023. The arrangement was indefinitely extended and later confirmed for 9 months during a shareholders' meeting on June 25, 2024.

• He is entitled to 38 vacation days annually, a vacation allowance, reimbursement for vacation costs, first-class medical treatment, and potential treatment abroad.

• He will receive an annual gratuity in December, and a monthly company pension upon ending his employment on October 1, 2024, based on his September 2024 salary.

• Eijndhoven also receives a representation allowance, the use of a company vehicle for personal purposes, a mobile phone, and a monthly expense allowance for internet and landline use.

• For business travel abroad, he travels business class and receives daily allowances for expenses.

This has caused outrage in the country as EBS is a state-owned company, while simultaneously, around 20% of the Surinamese population lives in poverty.

• A recent study shows that 17.5% of Suriname's population lives in poverty earning around $6.85 a day, with 1.1% in extreme poverty earning less than $2.15 a day.

• The 2022 Suriname Poverty and Equity Assessment, conducted by the Inter-American Development Bank and the World Bank, highlights key issues such as poor educational performance, inadequate social assistance, and higher poverty rates among families with children.

• The study emphasizes the need for equitable distribution of economic recovery benefits, improved social assistance, and better education and labor market outcomes, especially for women. While also highlighting that Suriname has recovered following its economic crises.

• Recommendations include maintaining economic stability, effectively managing oil revenues, and focusing on education, skills development, and disadvantaged groups.

• Minister Stanley Raghoebarsing emphasized using the study's insights to make decisions that enhance citizens' well-being and create a fairer society.

• This poverty highlighted the injustice and anger by the exorbitant salary of EBS technical director Marcel Eijndhoven.

As Suriname continues to develop its oil industry, Qatar has taken a stake in the country’s oil development.

• QatarEnergy has joined the production sharing agreement for Suriname's shallow offshore Block 5, acquiring a 20% stake from Chevron after Shell's departure.

• Chevron and Paradise Oil Company, a subsidiary of Staatsolie, each retain a 40% stake. Located 75 km offshore in 30 to 45 meters of water, Block 5's shallow depth lowers development costs, enhancing its commercial appeal.

• Plans to drill an exploration well in 2025 will proceed, aiming to confirm hydrocarbon reserves. Staatsolie anticipates continued collaboration with Chevron and QatarEnergy to develop Suriname's offshore oil and gas resources.

The rainy season in Suriname has caused a lot of damage, but according to the Minister of Agriculture, there has not been so much damage to farmland.

• Minister Parmanand Sewdien of Agriculture, Livestock, and Fisheries reports that farmers in Suriname experienced less damage during this rainy season due to improved drainage.

• However, he is concerned about the potential impact of the ongoing hurricane season.

• Limited resources have allowed only three main drainage channels to be cleared, improving water flow.

• In the Caribbean, the agricultural sector in St. Vincent & the Grenadines has been devastated by Hurricane Beryl, prompting a request for additional support from Suriname.

• Sewdien emphasizes the need for prioritizing resource allocation and suggests divesting loss-making state companies to focus on essential areas.