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PNP defends Latibeaudiere's multi-million-$ contract
BY ERICA VIRTUE Observer writer virtuee@jamaicaobserver.com
Friday, November 06, 2009
THE Opposition People's National Party (PNP) yesterday defended the multi-million-dollar contract it signed with former Bank of Jamaica Governor Derick Latibeaudiere and branded as a sideshow the Government's claim that it found certain provisions of the agreement unacceptable and repugnant.
"The governor's contract was not developed by Dr Omar Davies, and indeed that form of contract has been used for decades in employing successive governors from as far back as Dr Headley Brown in the 1980s," Opposition senator Mark Golding told journalists at a news conference at PNP headquarters in Kingston.
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| People's National Party (PNP) senator Mark Golding (Centre) speaks at a press conference called by the party yesterday to discuss the sacking of former BOJ Governor Derick Latibeaudiere. Golding is flanked by PNP General Secretary Peter Bunting (right) and Chairman Robert Pickersgill. (Photo: Karl McLarty) |
He said that at the time that the PNP demitted office in 2007, Latibeaudiere's overall annual package was in the region of $15 million. "This amount, though at the high end of public sector contracts, was not considered unreasonable, given the critical importance of the governor of the Central Bank in protecting the financial system and in the overall management of the macro-economy of Jamaica," said Golding, who is also the PNP's spokesman on industry and commerce.
The PNP called the news conference to respond to Prime Minister Bruce Golding's revelation in Parliament Tuesday that the Government had fired Latibeaudiere because it found "unacceptable, embarrassing and repugnant the interpretation and application of certain provisions" of his contract.
At the time he was cashiered Latibeaudiere's salary package, inclusive of allowances, totalled $38 million annually.
Prime Minister Golding had said that the contract was approved and signed by Davies, the minister of finance in the PNP Government, on May 28, 2007 with retroactive effect from August 1, 2006 to run to July 31, 2011.
But yesterday, Senator Golding described the prime minister's approach to the issue as "an imprudent sideshow".
"The prime minister pointed out the fact that the governor agreed to a reduction in his rental allowance from the amount that was derived from the application of the formula, to a lower amount. That's in his speech," said Senator Golding. "I don't feel that there was any kind of repugnance or anything. The man had a contract. The contract had certain provisions in it. They were applied. In the rental allowance it required two independent valuations of what the annual rental should be, and there was nothing to say that there was an interference with that process and that those valuations were improper in any way."
Senator Golding said that both the timing of the disclosures by the prime minister and his apparent surprise at the details of the contract were questionable, as it would be a significant management failure if the current finance minister did not acquaint himself with the contract details since coming to office.
Senator Golding also charged that the Government wanted to get rid of Latibeaudiere for a long time.
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