FLA - $8.4 Million Dollar Overpayment of Termination Benefits

Auditor General's Findings

The Auditor General’s Department’s 2019-2020 Annual Report found that, “The Firearm Licensing Authority (FLA) paid five former employees a total of approximately $8.4 million in termination benefits in excess of the amounts due under their employment contracts and in breach of the Ministry of Finance Circular No. 15 dated May 8, 2012 – Fixed Term Contract Officers Policy Guidelines.”

The Report also indicated that, “Management was reminded that those charged with the governance of the FLA are required to act in accordance with the guidelines issued by the Minister responsible for the public service in all matters relating to emoluments payable to staff in keeping with Section 20 of the Public Bodies Management and Accountability Act.”

Permanent Secretary (current): Courtney Williams

Breach Category: Resource Management

Permanent Secretary (at breach): Dianne McIntosh

Breach Type:

Status: Progressing

Last Assessed: December 9, 2022

Year Reported: 2020

Year Resolved:

JAMP Update

Jamaica Accountability Meter Portal (JAMP) requested documentation to substantiate:-
1. Whether the portion of the excess benefits that have now been recovered.
2. Who has been held to account for the breach of Section 20 of the PBMAA, and how have they been held to account.

On February 14, 2022 JAMP received the following response:

“We advise that there was no excess benefit paid to any employee whose services were terminated by the Firearm Licensing Authority. The persons whose services were terminated entered into a separate agreement (mutual benefit) with the FLA in keeping with Clause 9 of the Fixed Term Contract Policy (Please see Fixed Term Contract document attached). None of the persons received any amount in excess of what was due under their contract. In fact, the FLA paid out less than what was due (Please see attachment validating this information).

It is the manner in which the Auditor General characterized the payment that has caused misunderstanding. The phrase “termination benefits” is a terminology that is misleading because she disagreed with how management handled the separations.

Given the foregoing, there was no breach of Section 20 of the PBMAA as outlined above, and therefore no one can be held accountable.”

This response will be sent to the Auditor General’s Department for comment as the Auditor General’s Surcharge Review Committee has reported this matter to the Financial Secretary for Surcharge Action under SRC2021-04. As such, we will follow up on this matter with both entities until it is resolved.