In the public interest, an advance of $5 million dollars is proposed to be made from the Consolidated Fund to pay over 1,200 redundant workers of Freeport’s Royal Oasis Hotel.
Making the announcement in the House of Assembly on Wednesday, Leader of Government Business Vincent Peet said that the Attorney General’s office advised that the amount could be advanced under the Financial Administration and Audit Act once collateral has been provided. The affected workers would then be required to assign the benefits due to them to the government.
“Following this, the Ministry of Finance, in collaboration with the Public Treasury, the Attorney General’s office and the Department of Labour, will determine the appropriate bank account numbers and arrange for part payments to be made, which in the aggregate, will not exceed the statutory limit,” Mr Peet said.
The arrangements were expected to be made in one, but no more than two weeks, he said.
Under Article 128 of the Constitution, all Government revenues are paid into the Consolidated Fund. Article 131 prohibits the withdrawal of any funds except on the authority of a warrant signed by the Minister of Finance or by some person authorised by him in writing. Article 132 allows money to be witdrawn by the Minister “for any justifiable reason.”
Over $8 million promised
On Feb. 19, Works Minister Bradley Roberts, Chairman of the Royal Oasis Ministerial Task Force, announced that some $8.4 million in redundancy payments would be made to the displaced workers subject to certain conditions being agreed by the workers and hotel officials. However, the workers never received any of three scheduled payments. The Guardian was told that this was because union negotiations were ongoing.
The Royal Oasis resort was forced to close its doors last summer, following the devastation wrought by Hurricanes Frances and Jeanne. It was later disclosed that the owners of the property, Driftwood Properties Ltd., owed millions in redundancy payments and national insurance payments to the Resort’s employees.
Legal team
The Government appointed a legal team led by former Attorney General, Paul Adderley and Harvey Tynes, QC, to review the Government’s legal position in the dispute with the Driftwood Group. Hogan & Hartson, the Government’s U.S. attorneys, were also instructed to take whatever legal action became necessary.
During an emergency meeting this February in New York, Government representatives and creditors of Driftwood Freeport Ltd., Lehman Brothers, agreed to “consider” whether or not severance pay would be made to former employees of the hotel. With no agreement forthcoming, the government announced that it would pay the $8.4 million in redundancy payments.
Government representatives also made an effort to obtain an update on the financial position of Driftwood Freeport Ltd’s severance payments, the status of hurricane insurance, renovations, reopening and sale of the resort. It was also announced that several other investors had expressed interest in purchasing the resort.
By TAMARA McKENZIE, Nassau Guardian Staff Reporter
