REOs to cost the Treasury over $114M annually

Veerasammy Ramayya

Salarygate scandal widens:

– as Govt increases emoluments for the “boys” by over 100%

$114M of hard earned taxpayers’ dollars will now be spent annually to pay “quasi” political officials – as Minister of the Presidency described one of them – who have been appointed to the post of Regional Executive Officers (REOs) throughout the country following a decision by the new A Partnership for National Unity/Alliance for Change (APNU/AFC) Government to increase the emoluments of these officials by over 100%.

The Government took the decision to increase the pay of its REOs despite public outcry over its ongoing extravagance and wastage of taxpayers’ monies from the public purse on hefty salary increases for its Ministers and other politically connected individuals of the ruling coalition.

Pauline Lucas

With the hike in pay, over $81M will be spent on the salaries of REOs annually who will now receive an enhanced wage package of $380,00 in salary and $300,000 in additional benefits, bringing their total monthly remuneration to $680,000.

The benefits received by REOs will cost the public purse over $3M annually. Additionally, the duty free concession on vehicles enjoyed by the REOs will cost the public purse another $30M annually in unpaid duties.

Breakdown

The newly appointed REOs were handpicked by the new Administration after they took office in May, replacing seven of those appointed by the People’s Progressive Party/Civic (PPP/C). REOs are supposed to be bureaucrats and several of the dismissed REOs protested to no avail. As detailed below, it is ironic that the new Government did not follow its own statements on the issue.

Under the new remuneration package, the REOs will receive a non-taxable salary of $300,000; a non-taxable duty allowance of $70,000, and $10,000 as cellular phone allowance. They will also receive an additional $300,000 for payments of electricity bills, security service, and landline telephone service. In addition, the REOs will receive an annual vacation allowance of the equivalent to one month’s non-taxable earnings, which in this case is $300,000. Their contracts will be for a three-year period with 42 days in annual vacation.

As if not enough to burden the public coffers, the REOs will also benefit from a driver, an assigned Government vehicle, and yet a duty-free vehicle. The gas to fuel these vehicles alone will amount to over $1M annually.

Under the previous Administration, REOs received a salary of $292,196 with a station allowance of $1,500 and $500 entertainment allowance. They were under contract for a one-year period with annual performance review prior to renewal of contracts.

The addition of the non-taxable duty allowance was never a benefit enjoyed by REOs under the previous Administration.

The new boost of salaries for the REOs was announced on Wednesday by Prime Minister Nagamootoo at a post-cabinet media briefing. He said Cabinet approved the pay hike on Tuesday.

Family, friends and political sponsors

The newly appointed REOs are Leslie Wilburg, Region 1; Rupert Hopkinson, Region 2; Dennis Jaikaran (Sr), Region 3; Pauline Lucas, Region 4; Roderick Edinboro, Region 5; Veerasammy Ramayya, Region 6; and Gavin Clarke, Region 10.

The seven newly appointed REOs join Peter Ramotar, Region 7, Raphael Downes, Region 8 and Carl Parker, Region 9.

Hopkinson is the son the first Regional Chairman of Region Two, Kenneth “Baggie” Hopkinson who was appointed by the then People’s National Congress (PNC).

Jaikaran (Sr) is a member of the People’s National Congress Reform (PNCR) now APNU and was in fact a pallbearer at the funeral of former president Hugh Desmond Hoyte.

Edinboro was a former City Treasurer, who was dismissed by the Georgetown City Council following recommendations of a Commission of Inquiry into the affairs of the Georgetown Municipality.

Ramayya is an Executive member of the AFC. Late August Ramayya had threatened resignation from the AFC after he was not given any substantial Government job after the APNU/AFC took to office.

The increase in salaries for REOs comes against the backdrop of huge increases for Ministers and Vice Presidents.

In the Official Gazette of September 25, it was revealed that a Cabinet Minister would be given a hefty sum of $10,439,124 annually. It is further detailed that annually the Prime Minister would be benefiting from in excess of $20 million, while the other Vice Presidents would each receive $11,135,064.

The three Vice Presidents – Sydney Allicock, Carl Greenidge, and Khemraj Ramjattan will earn monthly some $1.13 million, double the $579,000 which they would have earned as Ministers. In addition, the vacation and other benefits are also $500,000.

A Cabinet Minister is now earning the hefty sum of $10,439,124 annually and a Junior Minister is paid $8,346,492 per annum.

Meanwhile, the Leader of the Opposition is offered $10,439, 124 on an annual basis, but Jagdeo has already indicated he will not be accepting this salary.

Amid massive public outcry, President David Granger sought to defend and justify the decision for the hefty salary increases. According to the Head of State, the salary increases will eventually translate to good governance.

State Minister Joseph Harmon had stated that the salary increase decision was made to ensure Ministers and Government officials are paid an attractive salary so as to discourage them from being corrupt.