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Housing Latibeaudiere
Wednesday, November 04, 2009
The arrangements for housing in the employment contract of former Central Bank Governor Derick Latibeaudiere which, according to the Government, led to his ousting on Friday began as far back as 1998.
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| Latibeaudiere... demands that contract be observed |
According to that contract, the governor must be provided with a fully furnished and fully maintained official residence inclusive of household and gardening staff and unlimited expenses for telephone, electricity and water. It further states that in the event an official residence is not provided the governor shall be paid rent for the premises he occupies based on the average rental value as determined by two independent valuations. Furthermore, new valuations must be done every two years and an adjustment made. In addition, the bank is required to pay full maintenance cost for the residence with no limits for rent or maintenance.
. In 1998 the Bank of Jamaica (BOJ) purchased a $22 million property at 15 Bracknell Avenue in upper St Andrew for the official residence of the governor from a budget of $35 million to acquire, refurbish and furnish the residence.
. In December 1998, Latibeaudiere suggested that the house be sold and advised the board that moving into the residence generated no real benefit to him despite their insistence. No refurbishing works were started.
. In December 1999 the governor reiterated that he did not want to occupy the house for various reasons, including the cost of refurbishment.
. March 2000 the BOJ board accepted a recommendation that the house be sold, leased or rented.
. December 2000, refurbishing commenced and was completed in April 2002 at a cost of $11.33 million. With furnishings amounting to $7.04 million, total expenditure came to $40.37 million.
. In 2003 it was agreed that the property be sold to the governor who had expressed interest. It was offered at $42 million but he declined. The property was subsequently sold in November 2003 for $40.48 million.
. The bank reverted to paying the governor rent and maintenance for the house he occupied.
. As at September 2008, the governor owned and occupied a residence in St Andrew which had an assessed rental value of $2.551 million and maintenance cost of $5.9 million amounting to over $8.451 million per annum.
. Between 2006 and 2008 the governor secured loans totalling $55.4 million at a five per cent interest rate to build a house in another section of St Andrew. The loans were subsequently questioned by the auditor general who observed that there was no evidence of board approval for the loans nor any specific requirement for board or ministerial approval and that there was no evidence of a loan agreement between the bank and the governor or that the loans were properly collaterised.
. The governor began occupying his new residence in September 2008 but continued to be paid rent and maintenance of over $8.451 million at the time.
. As of September 2009 a combined total of over $23.818 million had been paid for rent and maintenance alone.
The compensation package for the governor as at the time of his resignation stood at over $38.363 million in addition to a fully maintained car, entertainment expenses, medical and life insurance, guaranteed pension and all other benefits to which non-contracted service employees of the bank are entitled.
The former governor, on Friday October 30 prior to his dismissal, insisted that the bank's contractual obligations to him should be observed.
Said Latibeaudiere: "If the contract is not to be observed, then I would think that the law should take its course."
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