By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
THE executive committee of the Bahamas Union of Teachers has raised concerns about a “serious” procedure breach in which more than $1.1 million from the union’s pension and savings accounts were allegedly spent in contravention of union policies.
The executive committee has met with auditors who will perform an independent audit to determine if any offence has been committed, according to BUT Secretary General John Musgrove.
The news comes as BUT President Belinda Wilson and Treasurer Lorraine Knowles wait to see if an appeals committee will uphold the executive committee’s decision to suspend the pair for six and three months respectively in connection with alleged union “infractions”.
The three-member appeals committee, according to Mr Musgrove, was expected to be appointed yesterday evening and will have until Sunday to reach a decision.
A memorandum about the alleged procedure breach, signed by Mr Musgrove, was leaked to The Tribune yesterday. The memo, dated December 29, 2014, revealed that “serious constitutional breaches” have allegedly occurred within the union.
It said: “…(Monies were spent) from the pension account and savings account for matters unrelated to the purposes for which they were established, without the approval of the (Annual General Meeting) and without the knowledge and consent of the executive committee.
“The (AGM) established two accounts for particular purposes. The savings account was established in 2007; 15 per cent (was) due to be deposited to this account as a savings; this was amended by a subsequent AGM to 10 per cent. In 2009, another account was established for the purpose of a pension. Eight dollars per member per month was set aside to provide a benefit for members upon their retirement. No benefit was to be paid until 2010. Since these accounts were established by the AGM for stated purposes, any spending from these accounts for matters unrelated to their purposes needs approval from the AGM.”
Mr Musgrove said yesterday that money has been taken from the accounts and spent without the AGM’s approval. The reason given for this, he said, was to cover operational expenses.
However, Mr Musgrove told The Tribune: “We don’t care what it was used for. Those two accounts were not to be touched by anybody for no reason according to the AGM. Furthermore, wouldn’t operational needs already be budgeted for?”
He was contacted for comment after The Tribune received the memorandum.
In that he wrote: “The BUT has an operations account which receives 75 per cent of the dues members pay. The executive committee cannot accept that after receiving three quarters of the income to operate, that any officer … should resort to spending from both accounts.”
According to the memorandum, the money in the pension account will be transferred to a company for management starting this month.
Members who have been in the plan since 2009 are entitled to more than $420 to start an individual pension plan with the management company, it said. The memo added that when considerations are made for the members who have already retired and the money approved by the AGM for the construction of a building in Grand Bahama, each member who has been in the plan from 2009 should receive at least $350.
However, the memorandum said that based on the balance left in the pension account, “a member who has been in the plan from its inception cannot get more than $125.”
“Those who joined the plan after 2009 will receive even less,” it said.
Mr Musgrove said because “huge amounts” were spent from the savings account, that account is not able to replenish the pension account.
“This spending was hidden from the AGM and from the executive committee,” he claimed.
Comments
USAhelp 9 years, 3 months ago
Yea union they so good for the people.
Cornel 9 years, 3 months ago
Maybe they spent it on a new headquarters
duppyVAT 9 years, 3 months ago
Sad, Sad, Sad ............... this is just sad. The teachers are one of the most heavily taxed union members and they get very little for the tons of money paid to the BUT every month ....... over $180, 000 per month!!!!!!! or over $2 million per year!!!!!!!
And when you think that a starting teacher's salary is only $25,000 ............ compared to other non-degreed workers in this country?!!!!!!!! like Police, BTC, BEC, hotel etc.
This calls for a criminal investigation!!!!!!!!!!!!
Hogfish 9 years, 3 months ago
Tief Tief Tief... you know you gats to tief. ! Tiefen politicians teaching the teachers to tief, teachin the chirren to tief. If it ok for one it ok for ALL.
Stapedius 9 years, 3 months ago
They deserve to get screwed. The leader is problematic from day one. Union leaders in thus country are just rowdy people. They have no negotiating skills and no well thought out strategies. All they know is gimme, gimme, gimme or we will strike. They would rather the entire ship sink to save themselves. Same goes for the pilots and BEC folks. Its only about them.
concernedcitizen 9 years, 3 months ago
WTF 75% of their contributions go for operational expense ..Geez what a friggin rip off ,that means only 25% goes for pensions and what not .Are the members crazy ..All of them should quit paying the union and instead pay 5 buck a week to hire one tough ass legal eagle to represent them at contract time ,,
Greentea 9 years, 3 months ago
LMAO!!!!
TheMadHatter 9 years, 3 months ago
So the same people who could sign on the operating account were the same people who could sign on the two savings accounts? But they were supposed to be separate? There were no reputable members of the Executive Committee who could have been trusted to be co-signers on a two (or three) signature required savings account? It just had to be the same people?
This mentality comes down from Govt and is entrenched in our entire society. Almost any small business you go into that has a receptionist or secretary - ask them a simple question and their response is "The boss isn't here right now, would you like to try back?"
So now, that mentality has caused the Union and its members over a million dollars.
Good for them. Maybe next time they will elect trustworthy members of the executive committee that can be trusted to hold onto a savings account - and have the Pres and her people work with the operating account.
But I'm sure they will do the same thing again - just like the Bahamian people do every five years - they elect the same people over and over and over again. 42 years (almost) now of Independence and we have only found 3 people in our whole country fit to be Prime MInister. That's the mentality I'm talking about - and it is costing the country as a whole a lot more than a million dollars every week.
TheMadHatter
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