The Caribbean Court of Justice (CCJ), has ruled that former New Building Society (NBS) Chief Executive Officer, Maurice Arjoon is entitled to his full pension from the institution, bringing an end a decade-long Court battle.

In August 2007, Arjoon was terminated from the company on the grounds of serious misconduct.

In dismissing Arjoon, NBS at the time claimed that fraud was committed in 2006, with nearly $70M withdrawn from a client’s account. The revelation led to the dismissal of Arjune and a number of other top officers at NBS.

The criminal cases against Arjoon and his co-accused were all dismissed.

Arjoon had sued the NBS for some $550 million in damages on the grounds that he had been wrongfully dismissed from his post, and that his former employer had withheld pension and other benefits due him.

The High Court had awarded $79m in owed benefits to Arjoon. On appeal, the Court of Appeal agreed with the trial judge’s finding that the Appellant had been wrongfully dismissed. The Court however reversed the trial judge’s award of full pension benefits to the Arjoon. The Court of Appeal was of the view that having regard to the fact that the Arjoon’s employment had ceased, ‘no further pension contribution or pension rights are in place’.

Yesterday the CCJ explained its decision to award the former CEO his full pension payment.

 The Judges agreed that the Arjoon was wrongfully dismissed, and that he is entitled to full pension benefits as ordered by the High Court. However, on the question of Arjoon’s entitlement to severance payment, the Court in a 3-2 found that he is not entitled to severance, but will get his full pension.

While Arjoon was dismissed on the grounds of serious misconduct, the CCJ stated that it was never alleged by NBS in the proceedings that Arjoon was complicit in the withdrawal of funds from the client’s account and both lower courts were clear that the he  was not to be faulted, simply because he bore ultimate management responsibility, for the deficiencies in the system, of which the directors were aware, that allowed the fraud to be perpetrated, if indeed there was fraud. 

“That notwithstanding, the submissions to this Court for the Respondents still attempted to throw some shade on the Appellant. The High Court found, and was upheld on appeal, that there was not just and probable cause for summary dismissal of the Appellant,” the CCJ stated. 

Related posts:

Payment date for NIS pension to coincide with old age pension payment date from July Pensioners to get MMG option for montly old age pension payments CCJ overturns Guyana Court of Appeal’s decision to hear Election Petition case Hamilton Green shoots down criticism of him receiving a pension as “fermenting of strife”