Cargill to walk away with $50K
Guardian Staff Reporter
Published: May 18, 2013
Fired National Insurance Board (NIB) Director Algernon Cargill will walk away from NIB with just over $50,000, according to his dismissal letter, a copy of which was obtained by The Nassau Guardian.
The letter, which was signed by NIB Chairman Father James Moultrie, shows that the payout includes Cargill’s salary up to May 16, which adds up to $7,659.12.
He is also entitled to $56,161.99 for the vacation days that he did not take; $82.58 for meal allowance, and $516.13 for duty allowance. That adds up to $64,419.82.
However, $13,783.35 was deducted from that total to pay National Insurance contributions, medical insurance fees and his salary advance balance, according to the letter.
In total, Cargill will receive $50,636.47.
The letter, which breaks down Cargill’s earnings, indicates that he was making $684.90 per day at NIB, which gave him an annual salary of $178,074.60.
In addition to his salary, he also received $12,000 in duty allowance annually and $1,920 in meal allowance annually.
Cargill’s dismissal check, which will be available for retrieval on Tuesday, does not include compensation pay as he was dismissed for gross misconduct, according to the letter.
The board is “satisfied that your conduct in relation to the Sandyport issue constitutes a fundamental breach of your contract of employment and gross misconduct as envisaged by sections 31 and 32 of the Employment Act,” the letter states.
That section of the act says “an employer may summarily dismiss an employee without pay or notice when the employee has committed a fundamental breach of his contract of employment or has acted in a manner repugnant to the fundamental interests of the employer, provided that such employee shall be entitled to receive previously earned pay”.
The act further states that subject to the provisions of the relevant contract, misconduct may include theft, fraudulent offences, dishonesty, gross insubordination or insolence, or gross indecency, among other things.
The letters states that Labour and National Insurance Minister Shane Gibson approved the board’s decision to summarily dismiss Cargill.
It also sets out why the board voted to dismiss Cargill.
"Furthermore, on 28th November 2012, you swore and filed an affidavit in the Supreme Court of The Bahamas, in legal proceedings commenced by you against NIB and exhibited thereto a significant amount of confidential documents and materials to which you were privy solely by virtue of your capacity as a director and CEO of NIB,” the letter states.
“You thereby wrongfully placed confidential information of NIB within the public domain.
“The board is satisfied that your conduct of placing the aforementioned confidential information within the public domain would also constitute an act of gross misconduct justifying summary dismissal.”
The letter further notes that the board agreed in October to dismiss Cargill for gross misconduct in relation to the rental of apartment 124A at Sandyport by NIB from Jes-El Car Company Limited.
However, the letter noted that the decision could not be implemented until the board received Cabinet approval.
The claims regarding the apartment were first revealed in a 22-page letter written by fired NIB Chairman Gregory Moss.
The government contracted auditing firm Grant Thornton (Bahamas) to investigate the claims contained in the letter.
Auditors found that Cargill is listed as an officer of the company owned by his brother that rented the apartment to NIB.
The forensic audit also found that bonuses may have been improperly paid to Cargill and other executives, and also highlighted reported irregularities in the awarding of certain NIB contracts for various projects.
Earlier this week, Cargill defended the bonuses and salaries that were awarded to him and other executives between 2010 and 2012, and charged that the accountants who carried out the review left out crucial evidence in their report to the government.
Cargill said the bonuses and salaries had the approval of NIB’s human resources committee and then Chairman Patrick Ward.
According to the dismissal letter, the board weighed Cargill’s responses in its decision to dismiss him.
Despite his dismissal, the board determined that Cargill can keep the NIB cell phone. However, he was asked to turn in his car at 10 a.m. yesterday.
Cargill’s dismissal came six months after the allegations were made public.
He filed a suit against NIB and Moss for wrongful and unfair dismissal, defamation and breach of the Data Protection Act.
The matter remains outstanding.