PAJ – Fourteen (14) senior officers were overpaid gratuities totalling $15.05 million between April 2011 and March 2015

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Auditor General's Findings

Fourteen (14) senior officers were overpaid gratuities totalling $15.05 million between April 2011 and March 2015. The senior officers’ contracts provided for gratuity of 25 per cent of gross taxable emoluments. However, MoFPS Circular stipulates that gratuity should be paid on basic pay only. In April 2015,  PAJ wrote to the Ministry of Finance and the Public Service requesting a waiver for existing senior officers whose contracts were in breach of the Circular.

The Ministry responded indicating that PAJ’s request to continue the practice could not be supported. The Ministry noted and accepted that the provisions in the current contracts are legally binding on the Authority, but indicated that the Ministry cannot grant approval for provisions which are contrary to those detailed in the Circular.

Permanent Secretary (current): Audrey Sewell

Permanent Secretary (at breach):

Breach Category: Project Management

Breach Type: Overpayments (Invoices, Salaries and Allowances)

  • Breach Details
  • Articles & Reports
  • Accountable Officers
  • Calls To Action

Status: Non-Compliance

Year Reported: 2016

Last Assessed: July 4, 2018

Year Resolved:

JAMP UPDATE

April 12, 2019
PAJ advised via letter dated April 11, 2019 – “Based on our recent judgment from the Courts of Appeal which references the graduated payment, the Port Authority has a legal obligation to pay the gratuity as was contractually agreed.

“The judgment supports the decision of the Ministry of Finance that the Port Authority has our contractual obligations to pay, which is legally binding. There was therefore no overpayment to staff.”

Permanent Secretary Audrey Sewell CD, JP Office of the Prime Minister,
1 Devon Road,
Kingston 10,
Jamaica
876-926-1590
The Most Hon. Andrew Holness ON, MP Office of the Prime Minister,
1 Devon Road,
Kingston 10,
Jamaica
(876) 927-9941 View profile in MP Tracker
President & CEO Port Authority of Jamaica (PAJ) Professor, The Hon. Gordon Shirley OJ

No Calls To Action are currently associated with this breach.

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