Acting president of the Caribbean Maritime University (CMU), Professor Ibrahim Ajagunna has moved to clarify the disparity in his statements regarding the legal ramifications of terminating former Member of Parliament (MP) Othneil Lawrence’s contract with the university, and the actual termination provisions in the contract.

Ajagunna had explained at last week’s meeting of the Public Administration and Appropriations committee (PAAC) that legal advice from multiple sources, including the Attorney General’s office, were that it is best for CMU to allow Lawrence’s advisor contract with the university to run its three-year course, as termination could result in liabilities.

He said the nature of the contract was for services, but that there were other elements of the contract that were akin to full-time employment benefits. “The legal opinion is that we may have to allow the contract to ride out itself,” Ajagunna said.

A copy of Lawrence’s contract obtained by the Jamaica Observer on Thursday, however, outlined that the agreement can be terminated by either party at any time, with or without cause, with notice to the other party. It said that if CMU terminated the agreement, any obligation under the agreement would cease immediately, and CMU would only be obligated to compensate the advisor for work performed up to the time of termination.

On the weekend, Ajagunna told the Observer that the CMU has other arrangements that are not present in the contract, which explains the reason why CMU could face liabilities if it opts to end the contract.

“He also has a life [insurance] plan package and he also has the health plan, which the lawyer is saying we already have a commitment to provide life insurance for the duration of the contract. Even though it’s not written into the contract, we have undertaken to do that, which is also binding on the university… [which] makes the relationship between Mr Lawrence and the university to be that of more than a mere consultancy,” he outlined.

Professor Ajagunna said the university would either have to continue to pay on the policy for the remainder of the duration of Lawrence’s tenure, or pay a lump sum on the policy to cover the contract period.

“It would mean that we would have to provide the insurance, or we compensate him so that he can provide [it] for himself,” he said in relation to the health insurance policy.

According to the acting president, the university council had invited Lawrence to a meeting, where lengthy discussions were held and the decision taken to seek legal counsel about the arrangement.

He explained that there was no addendum to Lawrence’s contract to include this separate arrangement, but that it is documented on his file.

Professor Ajagunna emphasised that going forward, CMU would have to be “very careful” about the types of contracts it enters into.

“Whatever conditions that is to go along with the contract arrangement has to be documented, and the contract will have to be written in a way, capturing the additional arrangements or an addendum to the contract to that effect,” he stated.

The former Jamaica Labour Party MP’s engagement by the university last April as an advisor has sparked sharp scrutiny from the PAAC which is questioning, among other things, the fact that the post was not advertised, and that his interview was not sanctioned by the CMU council