Ruel Reid seeks over $10m in bonuses, increments from JC despite $23m payout

Former Education Minister Ruel Reid is seeking at least $10 million in incentive payments and salary top-ups for his time as principal of Jamaica College (JC), the all-boys high school he is suing for alleged breach of contract.

Reid, who resigned as chief steward of the country's education sector amid corruption allegations in 2019, has brought a lawsuit against the Jamaica College Trust, the school's legal owners, and Jamaica College Foundation, its charity arm, “for failure to pay … an annual incentive and a monthly salary top-up for the period 2017 to 2021”.

He was appointed principal in September 2007 and granted special leave in 2016 to take up the ministerial role. Wayne Robinson has been acting in the post since then.

But despite Reid's resignation from the Cabinet post, he formally remained principal until he stepped down in November 2021 after reportedly working out a $23-million settlement with the Ministry of Education and the trust. The ministry pays the school's staff salaries.

New details are now emerging about the lawsuit that was filed in July.

Reid claimed that when he was permanently employed as principal in 2007, the trust agreed to make an annual incentive payment of $500,000 “once he retained the post of principal”, according to court documents seen by The Sunday Gleaner which outline details of the lawsuit that was filed in the Supreme Court on July 31 this year.

“Therefore, the claimant will contend that the only condition which would trigger the payment of the incentive was that he retains the post of principal of JC,” noted the particulars of claim.

DETAILS OF THE LAWSUIT

Just after starting as principal, Reid said he made a request for an improvement in the incentive amount, specifically for it to be increased to $2 million annually. He said this was accepted and implemented in 2008.

Three years later, Reid had another request. This time, it was for the incentive figure, which was still $2 million, to be adjusted annually to reflect the inflation rate of Jamaica at the time the amount was due for payment.

The request was reportedly approved and took effect about July 2012.

Also in 2011, Reid said he sought a monthly salary top-up of $30,000, which was granted and disbursement began in September of that year.

In 2016, Reid went on special leave to take up the ministerial appointment.

However, he said the annual incentive payment due in July 2017 “was not paid, notwithstanding the fact that the claimant retained the post of principal of JC”.

“The defendants, in breach of contract, have failed or refused to pay the annual incentive due to the claimant for the period 2017 to 2021 despite requests and demands to make these payments and, as a consequence, the claimant has sustained loss, incurred expenses and suffered damage,” one of the documents said.

A series of correspondence between Reid and JC, dating back from 2006, were submitted to support the claim.

Reid, who was adviser to Andrew Holness when the latter held the education portfolio during the Bruce Golding administration, has asked the court to order an accounting to be done to determine the total incentive payment due to him, taking inflation into consideration.

Reid has given the total outstanding salary top-up payments at approximately $1.5 million.

Reid's attorney, Matthew McAnuff-Jones of the law firm Samuda & Johnson, has said the firm does not comment on clients' ongoing cases.

King's Counsel Michael Hylton, a consultant at the firm Hylton Powell, is representing the Jamaica College Trust and the Jamaica College Foundation. He has declined to comment on the details of the case.

Sunday Gleaner questions sent to Education Minister Fayval Williams more than a week ago remain unanswered.

NO DATE SET FOR HEARING

Up to October 24, the Court Administration Division said no date was set for a hearing of the claim because the matter “is still at the initiating stage”.

It said the defendants have filed their acknowledgement of service of the claim form and the next step is “dependent on the further actions [or inaction] by the parties to proceed with this matter”.

Up to September 2021, Reid was being paid an annual salary and benefits totalling about $5.5 million from the Government for his role as principal.

JC was forced into a settlement to head off the concerns around Reid retaking his chair as principal after the education ministry rejected a board recommendation for a five-year extension of his special leave that was due to expire in November 2021.

Shortly after the deal, the trust disclosed that it provided $7.2 million and the education ministry gave $16.1 million.

Reid, his wife Sharen, their daughter Sharelle, former Caribbean Maritime University (CMU) President Professor Fritz Pinnock, and Jamaica Labour Party Councillor Kim Brown Lawrence are to stand trial for a range of offences, including breaches of the Corruption Prevention Act, conspiracy to defraud, misconduct in a public office at common law, and breaches of the Proceeds of Crime Act.

The case stems from allegations that nearly $50 million was allegedly diverted from the CMU.

jovan.johnson@gleanerjm.com