Pay back every cent!
Former PAJ executives ordered to return millions
A DIRECTIVE in 2016 by the Auditor General’s Department that the Port Authority of Jamaica (PAJ) should take action to recover the retirement benefits paid to former executives of the Port Authority of Jamaica is to be carried out by the public body following a landmark ruling by the Supreme Court.
Two former executives of the Port Authority had filed a suit in the Supreme Court against the organisation, demanding that the public body pay them in full, discretionary benefits provided in their contracts of employment.
In a July 2016 special audit report, Auditor General Pamela Monroe Ellis raised concern about discretionary retirement benefits paid to executives who had already received gratuity payments.
One former senior executive walked away with pension and gratuity amounting to approximately $146 million.
Monroe Ellis, in her special report, had pointed out that the requisite approval was not sought from the Ministry of Finance for discretionary retirement benefit to be paid to the executives. This constituted a breach of the ministry’s guidelines.
The auditor general had made it clear that persons who received contract gratuities would not also be entitled to retirement benefits.
In a statement to Parliament yesterday, Prime Minister Andrew Holness said the Port Authority had requested the approval of the finance ministry to pay a reduced retirement benefit based on an agreement which was negotiated with the former executives.