| Unbudgeted public servants to lose jobs | | Print | |
| Written by Richard Green/richard@fptci.com | |||
| Thursday, 05 May 2011 12:44 | |||
![]() An unannounced number of public servants will lose their jobs May 31 because their wages were not included in any approved budget during past years, the interim government has decided. “Sadly, this is yet another issue arising from the legacy of maladministration inherited from the previous government and which we are now obliged to address,” an April 28 government statement said. “These are challenging times and it is unfortunate that this action is necessary. However, it is clear that had official procedures been followed under the previous government, these difficult but essential corrections would not be necessary now.” A review of all public employees revealed that a number of waged employees were not included in approved budgets but still have jobs. Some were hired part-time for specific jobs, then were kept on the government payroll, some for many years. “After careful consideration it was decided that positions falling outside the budget allocation should be removed and the services of persons holding such positions ended with effect from 31 May 2011. Exceptions would be made only where the relevant permanent secretary is able to present a strong business case to retain any of these positions.” The government is only required to grant a two-week notice for termination of waged employees, but it has decided to extend that period until May 31. “Any terminal benefits due to those concerned will be paid in accordance with their terms and conditions of service,” the government said. Unaffected are another 1,658 appointed and pensionable public servants and 139 working under contract. His Excellency the Gov. Gordon Wetherell has said public service spending — which accounts for more than half of all government spending — would have to be reduced by 25 percent in coming years to help erase deficit spending by the fiscal year ending March 2013. Between 2000 and 2007, elected governments tripled public spending, most of that in public service salaries. The number of employees jumped from fewer than 1,500 in 2002 to nearly 3,000 in 2008. The discovery of the unbudgeted waged employees is yet another in a string of instances where prior elected governments did not follow proper procedures, costing taxpayers millions of dollars. The review also revealed that some public servants wrongly received overpayments of pensions, gratuities and salaries to the tune of $10 million. An oversight in gratuity payments for civil servants resulted in overpayments totalling more than $6 million, and payouts for accumulated leave beyond the 30-day per year cap cost another $3.6 million. Another drain on the government was the lax control of Crown land lease purchases, where approximately 80 percent of purchasers made only their first year’s rent and never made another payment. The government had announced that it would publish the names of those in arrears, but that decision has been postponed. The Civil Recovery Team of lawyers hired by the government has recovered more than $3 million in money or Crown land in arrears but is still working on collections. Several court actions have been filed to take back huge amounts of Crown land sold to developers to keep the government afloat. Government spending abuses also were discovered in the student scholarship program, where more than a third of students were paid more than they were entitled. Some got as much as $250,000 when the maximum amounts set out in their agreements were no more than $50,000 to $90,000. The government has vowed to revamp the program to ensure that only qualified students get scholarships and that requirements are strictly followed.
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