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)
Year Reported: 2016
Last Assessed: July 4, 2018
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.”
No Calls To Action are currently associated with this breach.