REID GETS JC PAYOFF

Disgraced former Minister of Education Ruel Reid has been paid $3.3 million in a settlement the Old Hope Road-based Jamaica College (JC) said would likely be cheaper than litigation.

Reid, a former principal of all-boy institution, is before the court fighting corruption charges.

He was seconded from his job as an educator to take up the appointment of minister of education in the Andrew Holness administration in 2016.

He resigned in March 2019 amid an emerging Caribbean Maritime University (CMU) scandal.

In a statement late yesterday, JC said the school’s trust agreed in an out-of-court settlement with Reid to pay the sum.

“The difficult commercial decision was taken after seeking legal advice and weighing the risk of proceeding with a costly litigation process,” Derek Jones, chairman of the Jamaica College Trust, said.

He disclosed that the settlement comes at a cost of 10 per cent of the amount at risk.

“This puts the saga behind us and allows us to consider how best the money which was at risk in the lawsuit can be best used to further the interests of the 1,650 boys who attend Jamaica College,” Jones said.

In July last year, Reid filed a lawsuit in the Supreme Court against the trust and the Jamaica College Foundation claiming an amount of $28 million including interest.

Verbal agreements

Reid’s claim was that certain incentives which had been agreed when he was the principal of JC should be paid to him even during the period he was absent from the school on secondment, and then on special leave, to act as minister of education.

He alleged that the arrangements included certain verbal agreements made with the late Danny Williams, who occupied several positions connected to JC, including chairman of the school board.

Jones said the trust and the foundation consulted with Williams and took legal advice which was to the effect that they had a good chance of success and so proceeded to file defences in the lawsuit.

“Unfortunately, Danny Williams passed in September of 2023, which meant that he would have been unavailable to give evidence to refute the claims of verbal agreements made by Mr Reid,” said Jones.

He said consequently, the trust decided to pursue the option of a settlement with Reid.

He said the trust was advised that a trial of the matter would likely take place after several years and at a probable cost in legal fees of approximately $5 million.

The total amount at risk was approximately $33 million, Jones said.

He expressed relief with the latest development and said he is now directing his complete focus and efforts towards the further advancement of the school, the staff and students.

Reid, former CMU President Fritz Pinnock along with Reid’s wife Sharen, their daughter Sharelle, and Jamaica Labour Party Councillor for the Brown’s Town division Kim Brown Lawrence have been charged with 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 accused were charged by the Financial Investigations Division (FID) following an investigation into nearly $50 million which was allegedly diverted from the CMU.

kimone.francis@gleanerjm.com