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 read more

PRINGLE CALLS ON MINISTER TO RETHINK STANCE ON ‘FRACTURING’ IN DONEGAL

first_imgIndependent TD Thomas Pringle has called on the Minister for Communications, Naturals Resources and Agriculture not to grant any licenses for ‘fracturing’ in Donegal until a full investigation is carried out by an independent group.The Donegal South-West Deputy met with Minister Pat Rabbitte where he questioned him on his Department’s plans for hydraulic fracturing or ‘fraking.’‘Fraking’ is the controversial method of drilling using pressurized fluid to find energy reserves such as coal and oil. Deputy Pringle, who is part of the Joint Committee on Communications, Natural Resources and Agriculture, said there are many concerns over the relatively new technique.“I raised the issue of Hydraulic Fracturing with him and highlighted the concerns of the community in relation to safety of this process.“I called on him not to grant any licenses for this until it can be independently verified,” said Deputy Pringle.Parts of South Donegal are located in the Lough Allen Basin in which licenses have already been granted for exploration. The Joint Committee has also agreed to investigate the licensing procedure for off shore oil and gas exploration and the favourable terms offered to companies.“I called on him not to grant licenses until a review of the process is completed and any recommendations implemented,” added Deputy Pringle.However Minister Rabbitte refused the request saying that companies are not cueing up for licenses.But Deputy Pringle said this was leaving the door open for licenses to be rushed through.“The bottom line is that the door is now being left open for companies to apply for licenses. Once we grant licenses, we will find it very difficult to take them back. “The Minister should have granted the Joint Committee the courtesy of having an independent investigation carried before leaving this door open,” he said.EndsPRINGLE CALLS ON MINISTER TO RETHINK STANCE ON ‘FRACTURING’ IN DONEGAL was last modified: September 14th, 2011 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)Tags:Deputy Thomas Pringlefracturinglast_img read more