NBS ordered to pay fired CEO $59M

first_img– as Bank secures stay of execution in remaining $20M paymentThe Appeal Court of Guyana has upheld the High Court’s awarding of over $59 million in pension benefits to former Chief Executive Officer (CEO) of the New Building Society (NBS), Maurice Arjoon, more than 10 years after he was dismissed from his post. However, the remaining $20 million for which the High Court had also determined that Arjoon should receive was not awarded and will form part of substantive appeal as the Bank secured a stay of execution againstDismissed former NBS CEO, Maurice Arjoonthe former CEO’s judgment.These determinations were made by Appeal Court Justice, Rishi Persaud, who on Wednesday ruled that there was no basis for a stay of execution in relation to the former CEO’s more than $59 million lump sum which was described as the pension amount. Arjoon’s Attorney, Sanjeev Datadin explained that this means that NBS has to pay the former CEO’s pension. The $20,249,000 for which NBS obtained the stay, relates to $4.1 million for pay in lieu of notice, in accordance with Clause 10 of Arjoon’s contract and $16.1 million for severance benefits.Guyana Times understands that now the stay of proceedings is complete, the record will have to be assembled and when the record is assembled, then the substantive appeal will continue. Wednesday’s matter was heard in chambers and lawyer for NBS, Ashton Chase indicated to this publication that a date for the continuation of proceedings will be determined in the future. In the meantime, Datadin is optimistic that his client will receive his pension.“Presumably New Building Society is going to pay my client,” the Attorney noted.The back and forth for this case has been ongoing for years. The former CEO took NBS to court for his outstanding pension and other benefits in 2011. Arjoon had originally sued the lending agency for some $550 million in damages on the following grounds: that he had been wrongfully dismissed from his post, and that his former employer had withheld pension and other benefits due to him. The former top official was fired from his position 10 years ago in connection with a Magistrate’s court matter wherein he, NBS Operations Manager Kent Vincent and NBS Assistant Mortgage Manager Kissoon Baldeo were all accused of conspiracy to defraud the NBS of $69 million. The court matter was eventually dismissed, and Arjoon and the co-defendants took the financial institution to court.High Court Judge, Justice Brassington Reynolds on July 17 ruled in the dismissed CEO’s favour, awarding him more than $79 million in outstanding payments and benefits. The court also ruled that he should be paid a monthly pension of $372,498 from July 1 onwards. The Judge further ordered that the former CEO should receive financial compensation for the damages he had suffered; and moreover, that he was entitled to his pension and severance benefits, in accordance with provisions stipulated in the laws of Guyana.The NBS had contended that an unauthorised withdrawal of nearly $70 million had been made from an account that its client Bibi Shamina Khan held. The NBS’s issue with the withdrawal was that it was made through a Power of Attorney, and the company had implicated Arjoon for misconduct. The court in its determination contended that the NBS had failed to provide evidence that supported its claim of misconduct, whether serious or otherwise.Arjoon, who told media operatives that he was sick, had claimed that he was set-up on the fraud allegations because he allegedly refusal to approve a loan of some $2 billion applied for in 2006. He had also noted that the investigation into the fraud allegations was conducted later that same year, implicating him as CEO, as well as the co-defendants.last_img

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