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Million-dollar man! - Megabucks paid to Finsac secretary
Megabucks paid to Finsac secretary while commission inactive
BY ERICA VIRTUE Observer writer virtuee@jamaicaobserver.com
Thursday, November 18, 2010
PARLIAMENT'S Public Administration and Appropriations Committee was told yesterday that the secretary to the Finsac Commission of Enquiry was being paid close to $1 million per month, despite its inaction for most of the year.
The controversy-plagued commission of enquiry restarted yesterday to the news that $51 million of the $80-million budget had been expended so far, and that secretary to the commission, Fernando dePeralto, had so far received salaries of more than $22 million.
Importantly, the payments include $4.6 million between April and November when there was no meeting of the commission.
"What I find very, very surprising is that the expenditure to the chairman of the commission, Justice Boyd Carey is $9 million [while] the secretary, Mr Fernando Antonio dePeralto, has received $22 million [since the commission started in 2009]...," said committee chairman, Dr Wykeham McNeil.
Granville Green, acting principal finance officer in the Ministry of Finance, said the sum was for the period 2009/2010 and 2010/2011. Green told the committee also that the commission started in early 2009 and operated until the middle of the year.
DePeralto, a financial consultant and former deputy governor of the Bank of Jamaica, was being paid at a reduced rate as a result of the inaction of the commission due to court action, the committee was told.
Dr Wykeham McNeil later described the expenditure on the enquiry as "egregious and astounding". "There is something that is very disturbing in this. Is this a norm? How does one apply for a position like this?" the committee chairman asked.
Green, in response, said that when the commission was preparing itself for the sittings it was normal. "During the legal action, the operations of the commission was suspended to three days, half-days and one full-day. The expenditure in respect of Mr dePeralto was reduced," Green added.
"Reduced to what?" McNeil asked.
"Less than a million per month, and normally it's a million per month," said Green.
"He is, for three half-days and one day, getting $1 million per month and the commission is not sitting?" McNeil asked.
"He is paid US$150 per hour whether the commission sits or not," Green explained.
"This is astounding! How do you apply for a job like that...?" McNeil again asked.
Green said claims would be submitted for three half-days and one full-day as he would be active.
"Doing what?" asked both McNeil and MP Fitz Jackson simultaneously.
"Work, and he would always be consulting with, how should I put it, persons who had concerns with Finsac," he said.
McNeil wanted to know who authorised payments, to whom were the claims submitted and to whom does the secretary report.
Green responded that the chairman of the commission authorised all the invoices and during the removal of the chairman, authorisation was given by acting chairman Charles Ross. He added that concerns and referrals were made to the financial secretary, "but most times we end up paying it". Rates were fixed for all the commissioners, Green said.
For much of 2010, sittings have been in abeyance as a result of court action, which has since led to the disqualification of Justice Carey.
The Supreme Court upheld submissions from four claimants who charged that there was perceived bias on the part of Carey whom the court found was a Finsac debtor.
DePeralto served on the boards of the National EX-IM Bank and Petrojam as well as with the International Monetary Fund (IMF).
The Commission was appointed by the Government to review the 1990s financial sector collapse, which led to the creation of the Financial Sector Adjustment Company (Finsac).
Finsac was established by the Government of Jamaica in January 1997, with a mandate to restore stability to Jamaica's financial institutions after the financial meltdown.
http://www.jamaicaobserver.com/news/...ar-man_8163762
Megabucks paid to Finsac secretary while commission inactive
BY ERICA VIRTUE Observer writer virtuee@jamaicaobserver.com
Thursday, November 18, 2010
PARLIAMENT'S Public Administration and Appropriations Committee was told yesterday that the secretary to the Finsac Commission of Enquiry was being paid close to $1 million per month, despite its inaction for most of the year.
The controversy-plagued commission of enquiry restarted yesterday to the news that $51 million of the $80-million budget had been expended so far, and that secretary to the commission, Fernando dePeralto, had so far received salaries of more than $22 million.
Importantly, the payments include $4.6 million between April and November when there was no meeting of the commission.
"What I find very, very surprising is that the expenditure to the chairman of the commission, Justice Boyd Carey is $9 million [while] the secretary, Mr Fernando Antonio dePeralto, has received $22 million [since the commission started in 2009]...," said committee chairman, Dr Wykeham McNeil.
Granville Green, acting principal finance officer in the Ministry of Finance, said the sum was for the period 2009/2010 and 2010/2011. Green told the committee also that the commission started in early 2009 and operated until the middle of the year.
DePeralto, a financial consultant and former deputy governor of the Bank of Jamaica, was being paid at a reduced rate as a result of the inaction of the commission due to court action, the committee was told.
Dr Wykeham McNeil later described the expenditure on the enquiry as "egregious and astounding". "There is something that is very disturbing in this. Is this a norm? How does one apply for a position like this?" the committee chairman asked.
Green, in response, said that when the commission was preparing itself for the sittings it was normal. "During the legal action, the operations of the commission was suspended to three days, half-days and one full-day. The expenditure in respect of Mr dePeralto was reduced," Green added.
"Reduced to what?" McNeil asked.
"Less than a million per month, and normally it's a million per month," said Green.
"He is, for three half-days and one day, getting $1 million per month and the commission is not sitting?" McNeil asked.
"He is paid US$150 per hour whether the commission sits or not," Green explained.
"This is astounding! How do you apply for a job like that...?" McNeil again asked.
Green said claims would be submitted for three half-days and one full-day as he would be active.
"Doing what?" asked both McNeil and MP Fitz Jackson simultaneously.
"Work, and he would always be consulting with, how should I put it, persons who had concerns with Finsac," he said.
McNeil wanted to know who authorised payments, to whom were the claims submitted and to whom does the secretary report.
Green responded that the chairman of the commission authorised all the invoices and during the removal of the chairman, authorisation was given by acting chairman Charles Ross. He added that concerns and referrals were made to the financial secretary, "but most times we end up paying it". Rates were fixed for all the commissioners, Green said.
For much of 2010, sittings have been in abeyance as a result of court action, which has since led to the disqualification of Justice Carey.
The Supreme Court upheld submissions from four claimants who charged that there was perceived bias on the part of Carey whom the court found was a Finsac debtor.
DePeralto served on the boards of the National EX-IM Bank and Petrojam as well as with the International Monetary Fund (IMF).
The Commission was appointed by the Government to review the 1990s financial sector collapse, which led to the creation of the Financial Sector Adjustment Company (Finsac).
Finsac was established by the Government of Jamaica in January 1997, with a mandate to restore stability to Jamaica's financial institutions after the financial meltdown.
http://www.jamaicaobserver.com/news/...ar-man_8163762