NHT board crippled
The beleaguered National Housing Trust (NHT) was last night facing a new dilemma as a third director, Brenda Cuthbert of the Jamaica Employers’ Federation (JEF), indicated she would resign today, effectively crippling the board.
If Cuthbert tenders her resignation to Prime Minister Portia Simpson Miller as signalled, it would mean that the board of the State-run housing agency would have only eight sitting members, or one short of the nine necessary for a quorum, and so could not meet.
Cuthbert, the JEF representative on the NHT board, could not be reached for comment at Jamaica Observer press time, but impeccable sources confirmed her decision to quit on grounds that “she came under intense pressure from the JEF board which is in disagreement with the $180-million purchase of the Outameni Experience”.
The main private sector groups had previously expressed their disagreement with the NHT decision.
Earlier in the week, two other NHT board members — Kavan Gayle and Helene Davis-Whyte — also turned in their resignations as the controversy over the Outameni purchase gained steam.
At nightfall yesterday, the Administration was said to be considering its options to stave off the crisis. One possible action could be an emergency Cabinet meeting to name new directors, but the Observer could not find anyone willing to comment.
The three latest resignations bring to seven the number of directors to have parted company with the board this year. In March, a quartet of directors — Deborah Martin, Minna Israel, Davidson Daway, and Rev Oliver Daley — resigned in support of former Managing Director Cecile Watson who was fired for spending $10 million to, among other things, refurbish the board room and her office, without the approval of the board.
But her lawyers had argued that she had the authority to spend up to $10 million without board approval.
The directors were said to be supporting her claim for a settlement as her contract had some time to go. Watson was eventually paid $5 million, in addition to the $8 million in severance payment due to her, after arbitration involving veteran attorney K D Knight, QC.
And as the NHT-Outameni saga continued to take flight, the Observer last night obtained a copy of the minutes of the NHT board meeting of December 3, 2012, showing that there was no dissenting voice among the 12 directors present when the decision to purchase the financially ailing Outameni Experience was taken. The Observer had erroneously reported yesterday that a four-four vote deadlock was broken by the chairman to approve the purchase.
In attendance were: Easton Douglas, chairman; A Cecile Watson, managing director; Lambert Brown; Robert Buddan; Brenda Cuthbert; Rev Oliver Daley; Dr Davidson Daway; Norman Horne; Minna israel; Sonia Hyman; Percival LaTouche and Vincent Morrison. Absent were: Helene Davis-Whyte; Kavan Gayle; Deborah Martin; O’Neil Grant and Judith Larmond Henry, company secretary.
The minutes showed that Watson made the submission to the board for its approval of the Outameni acquisition for $180 million after the Technical Committee of the board had given its nod.
“The board approved the Technical Committee’s recommendation that the Trust settles the outstanding balances due to Capital and Credit Merchant Bank on behalf of Orange Valley Holdings (owners of Outameni) which were estimated at $180 million, in exchange for which, the assets owned by Orange Valley Holdings Limited, as detailed in the Appraisal Report prepared by David deLisser and Associates, dated October 4, 2011 and valued at $311,163,800, would be transferred to the Trust,” an excerpt from the minutes said.