The vision and the mission of the Bonaire Holding Company (BHM) immediately make clear where the holding company stands. The parent company is “to achieve anenhanced and affordable standard of living for the inhabitants of Bonaire” by facilitating and guaranteeing “best practices in the area of good corporate governance through professional managers and supervisors”.
BHM as major shareholder
The major shareholder of the five public companies, founded in 1996, are TELBO telecommunications company,Tourist Corporation Bonaire (TCB), Bonaire Government Buildings (BOG), waste disposal service Selibon and medical laboratory BONLAB, and actually forms a buffer between the local political authorities and its subsidiaries.
So appoint parent company BHM executive and board members, the holding company ensures good governance, set the next annual statutory policy of its subsidiaries adopt and make the company’s dividend policy.
The shareholder tasks of BHM include fostering synergy, which is implemented in close cooperation with the subsidiaries. An example is the joint purchasing of products and services. Whether it concerns the selection and deployment of an accountant, or trainings for directors and auditors, or to conclude an off insurance route or hire occupational health services, BHM occurs herein invariably as the advocate and closes framework agreements on which his five daughters use can make.Simulating the synergie also includes promoting cooperation between the subsidiaries and government companies such as Bonaire International Airport (BIA) and Water and Energy Bonaire (WEB) not covered by the holding company. Telbo’s Fiber to the Home Project was co-financed by an amount of $ 9 million as a loan from Maduro and Curiel’s Bank, a good example. To provide Bonaire fiber with optic cables Telbo regarded to the civil proceedings and entered into a partnership with WEB. However, the most important task of the holding company and immediately a thorny issue is perhaps the implementation of the Code of Corporate Governance. A code whose importance is often underestimated. On a global level there are issues like integrity and transparency, the code base of corporate governance. The World Economic Forum (WEF) also secures that the economic world maintains the highest standards of good governance. An annual total to around 2,500 participants join in this forum, including some world leaders, the CEOs of the largest companies, intellectuals and journalists.
“Good governance is not only implementing the Corporate Governance Code of rules, procedures and manuals, but is directly connected to people’s behavior.”
According to the director of BHM, John Soliano, the Code mainly is based on people’s behavior. The Corporate Governance Code is designed to help companies operate with integrity and transparency, sustainable development and to organize their organization so that abuse can be prevented. Its importance is therefore fairly simple to demonstrate. Unethical and untransparent acts and not operate according to the code will, as soon as it comes to light, crash the largest multinationals with ease. The code promotes sustainable economic development, not least because it would strengthen the reputation of Bonaire and thus is more attractive to both entrepreneurs and investors. Implementation is therefore a necessity.
Operation Results
BHM, as well as subsidiaries and TCB members Telbo made a loss in 2014. BHM ended the year with $ 91 190 in negative, TCB booked with 77 446 in 2014, a $ 14,000 higher negative than the previous year and Telbo had a negative balance of $ 718 597. The great loss of Telbo falls, according BHM Director John Soliano, can be easily explained and are one-time events. Telbo struck a provision for its debtors together of approximately $ 500,000 in 2014 and amortization of the value of the building before the renovation was good for about $ 300,000. The consolidated negative result of BHM was therefore largely determined by this loss of Telbo. However, the regular business performance of the telecommunications company are positive and the company has so far had financial ratios included in the multi-annual programs. Telbo’s loss is thus incidental and therefore are not a cause for concern. Although it should of course continue to be controlled, Soliano says. The other three subsidiaries, Selibon, BONLAB and SNB were profitable. Together they made a profit of as much as $ 830 096 in 2014.
In the opinion of John Soliano the performance of the five daughter-companies are getting better but it should be primarily about good service at the lowest possible price and profit should ranks second at BHM. To ensure the quality and continuity of service, after all, we need a lot of investment and companies must be financially sound to carry these investments. “Profit is a welcome bonus, but not the most important thing in a public company. It must be the result of a well thought-dividend policy based on balance sheet standards. Our aim is indeed to achieve an increased and sustainable standard of living for the people of Bonaire, “says director Soliano.
Future Ambitions
For the future, there are several plans in the pipeline. John Soliano wants to develop a ten-year dividend plan. This plan should provide guidance to affiliates on how they should develop in the coming years. Another focus will be the potential spin-off of one or more subsidiaries. BHM wants to namely look critically at whether and how a number of public companies are ripe for privatization. At present Selibon relies partly on their own but the waste disposal company needs funding to achieve its ambitions. For BONLAB and TCB it is more or less the same. Telbo other hand, is actually a commercial company that has potential for far-reaching cooperation and can even (partially) be privatized. High on the wish list of the Director of BHM is also making concrete agreements with the government and its subsidiaries. These agreements or Service Level Agreements (SLAs) should define and clarify targets within the vision of the government. On this basis BHM can provide five subsidiaries with a clearer framework on the basis of which they can then give them a policy. Finally BHM will now and in the future continue to implement the Corporate Governance Code, whether or not in modified form, to realize an increased and sustainable standard of living for the people of Bonaire.
JOHN SOLIANO
John Soliano, since 2012 director of BHM, is a born Rinconero (someone born in Rincon). After HAVO he left, like many before and after him, to the Netherlands to continue studying there. However, the HR manager was determined to return to Bonaire after his studies. Initially more attracted to science and technical processes, he became interested in Personnel and Labor. During his study a dean recommended him to attend a social program for one year. John Soliano then chose the HRM Training, Personnel and Labor in Breda. What began as a year, ended with the whole study, additionally supplemented with master’s Personnel and Labor of the University of the West of England in Bristol (England).
His graduation project he did with WEB Bonaire. Since he was going to study to come back to Bonaire, Soliano knew that his job prospects would improve, if he would have to show himself.
And with success, because after graduating Soliano could, as a token of appreciation and because the HR manager left, go straight to work as HR manager at the utility. Because the brand new HR manager felt he ” needed to know business” and because his love for technical processes still was not completely gone, he immersed himself in the processes of the company. He became involved in a number of projects in the field of water management, the reorganization of maintenance, energy and sewage and waste water treatment. In 2000 Soliano adopted at the Bonaire Management Group (BMG) to centralize the knowledge and expertise of public enterprises. Here Soliano soon became HR director. Six years later Soliano flowed in the same capacity to BHM until he became the director of the holding company in 2012. His positive view of mankind and his belief in human malleability were the greatest motivators and important keys to success for him.