The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Attorneys for the City Markets employee pension plan yesterday moved to “strike out” a court Order against its trustees, asserting that the $800,000 at the centre of the dispute had already been paid to beneficiaries.

Kenyatta Gibson told Tribune Business that the trustees for the Bahamas Supermarkets Profit Sharing Retirement Trust would be “vindicated”, and said their opponents were “taking away the option” for beneficiaries who wanted the plan to remain in existence.

Responding to efforts by attorney James Thompson, who on behalf of several former City Markets workers, has obtained leave to apply for a Supreme Court order to jail the now-defunct supermarket chain’s principal, Mark Finlayson, and the two pension trustees, Mr Gibson said the rights of all parties were “being protected”.

Pointing out that Mr Finlayson was no longer a trustee, Mr Gibson accused Mr Thompson and his clients, including former City Markets’ chief inventory control officer, Whanslaw Turnquest, of trying to extract “as much as they can” from the pension fund.

The former MP and Gaming Board chairman added that Mr Thompson and Mr Turnquest did not speak for all pension plan beneficiaries, disclosing that an affidavit had been filed with the Supreme Court listing more than 100 former workers who wanted to “settle” with the trustees.

Tribune Business revealed on Tuesday how Mr Thompson and his clients were attempting to jail Mr Finlayson and the two remaining trustees, Constance Rolle and Christine Turnquest, on the grounds that they had allegedly failed to comply with a December 5, 2012, Order.

That Order required the City Markets employee pension fund to pay out the $800,000 proceeds generated by the sale of equipment at the former Cable Beach store to Super Value’s Quality Supermarkets, plus the sale of $300,000 worth of bonds.

But Mr Gibson told Tribune Business that the December 5 Order, which has formed the basis for Mr Thompson’s actions, was obtained at a Supreme Court hearing in Freeport when neither the trustees, nor their attorneys, were present.

That Order, Mr Gibson added, required the City Markets employee pension fund to “pay more funds to the beneficiaries”, but this happened only after attorneys deducted their legal fees.

This newspaper has seen documents where attorneys are charging 20 per cent of the sums paid out to City Markets pension plan beneficiaries as fees for their services.

Mr Gibson said these fees were “considerable”, and added that Mr Thompson and his clients had failed to properly serve Mr Finlayson and the trustees with papers relating to the December 2012 Order.

While “not conceding” anything, Mr Gibson said there was a suggestion that one trustee may now have been served, enabling him to respond with Supreme Court filings of his own.

“Today in court, we immediately filed an action, a summons, asking the Court to strike out the December 2012 Order on the basis that those funds have already been paid,” Mr Gibson told Tribune Business.

“We filed an affidavit where 100 beneficiaries say they don’t wish him [Mr Thompson] to represent them in the action he’s bringing, and want to come to terms with the trustees.....

“The trustees will be vindicated. Everyone is living up to their fiduciary responsibilities. They are trying to live up to their commitments,” Mr Gibson added,

“If these fellas [Mr Thompson and Mr Turnquest] are allowed to do what they want to do, they will take away the option for beneficiaries who want the trust to continue so they get yearly payments.

“They will take away the option for people who want to continue. It can’t be fair.

“Not only the rights of the trustees but the rights of the beneficiaries are being protected, and they’re just being targeted by a few people wanting to get as much as they can.”

Mr Gibson said the Supreme Court had told Mr Thompson that previous efforts to enforce committal proceedings against the trustees were procedurally incorrect.

He added that Mr Finlayson had “very prudently” stepped down as a pension fund trustee some time ago, having been advised that this may conflict with his position as City Markets’ principal.

Mr Finlayson had asked Tribune Business to contact Mr Gibson, pointing out that it was “inappropriate” for him to comment as he was no longer a trustee.

Adding that he never been served with any of the court Orders, Mr Finlayson said the Supreme Court was in possession of evidence showing “how the trustees disbursed those funds received from the sale of the Cable Beach assets and the bonds”.

And he disclosed in an e-mail: “$600,00-plus was disbursed to the qualified beneficiaries. This was done by individual cheques in the joint name of each beneficiary and Mr Thompson.

“$140,000-plus was disbursed to those beneficiaries that had already informed the trustees, in writing, that Mr Thompson did not represent them. Any amount left is being used to pay the legal and professional fees the trust has incurred as a result of this lawsuit.”