Prime Minister Bruce Golding has laid his cards on the table regarding the recent and shocking movements in the country's leadership. Derick Latibeaudiere, former governor of the Bank of Jamaica, had an untenable contract, he says, while Hardley Lewin, the hard-nosed army man-turned-commissioner, was not exuding confidence. See more escerpts of what the Prime Minister had to say about the two.

Bruce on Latibeaudiere

Latibeaudiere

The Government found unacceptable, embarrassing and repugnant the interpretation and application of certain provisions of the governor's contract of employment.

It was a strange contract, the likes of which has not up to now been found anywhere else.

The compensation package for the governor would now amount to $38,363,360 plus a fully maintained car, entertainment expenses, medical and life insurance, guaranteed pension and all other benefits to which non-contracted service employees of the bank are entitled. Research shows that this exceeds the compensation package for the Chairman of the Federal Reserve Board of the United States.

The Government considers these arrangements to be unconscionable, especially at a time when the country is undergoing such severe financial stress, when public sector workers have had to be denied their planned seven per cent wage increase, when the Government has not been able to meet the demand of nurses for reclassification.

Apart from the modest concession on the payment for rent, the governor has remained adamant that the bank's contractual obligations to him must be met. In a letter to the minister dated Friday, October 30, prior to his dismissal, he stated in bold type "If the pacta sunt servanta principle which governs the sanctity of contracts is to have any meaning, the contract which I have signed with the minister in accordance with statute should be observed". The letter goes on to say "If the contract is not to be observed then I would think that the law should take its course".

As a matter of principle, the Government could not continue these arrangements. We have not abrogated the governor's contract of employment. We have terminated the contract in accordance with Clause 9(b) of the contract. The governor is entitled to a settlement in the terms provided by the contract which include payment of salary which would have been earned for the balance of the contract, any vacation leave due and, amazingly because it is a most unusual provision in a fixed term contract, redundancy payments calculated on the same basis as would apply to a non-contracted service employee of the bank, inclusive of his successive contract periods.

Despite the action that the minister of finance has found it necessary to take, I wish to record the Government's appreciation for the many years of service that the former governor has given to the bank and to Jamaica. There may have been policy differences between himself and governments past and present but his strong leadership and valuable service cannot be denied and should not go unrecognised.

The former governor is not to be blamed for the absurdly generous and open-ended contractual terms that he enjoyed. He was the beneficiary. That blame must be laid squarely at the feet of the former government and the former minister of finance, in particular, who authorised and signed the contract.

It is a matter of much significance that there is no record in the Cabinet Office to suggest that this or any preceding contract with the former governor was ever approved by, or even brought to the attention of, the Cabinet.

Yesterday's decision by Standard and Poor's to further downgrade Jamaica's sovereign bonds can be seen as a knee-jerk reaction to the dismissal of the governor.

Bruce on Lewin

Lewin

We have sought, within the limits of the resources available, to provide every possible support to him and the force, especially in their efforts to combat the high level of crime and violence that is plaguing the country.

On October 12, I met with the chairman of the Police Service Commission, Professor Shirley, and advised him that the Cabinet was deeply concerned about the escalating level of crime, did not feel that the strategies being pursued were effectively addressing the problem, and that it had lost confidence in the ability of the commissioner to deliver the results that the country required.

In discussions with the chairman, it was agreed that I would meet with the entire commission to express my concerns. This meeting was held on October 14 and I conveyed the same concerns and sentiments to the members who undertook to deliberate on the issues.

At the monthly meeting of the National Security Council on October 21, I requested that the police submit to Cabinet through the minister of national security a strategic action plan to address the current crime wave, and that the commissioner should make himself available to discuss the matter with the Cabinet.

At the meeting with the commissioner on Friday, October 23, I reiterated my concerns and expressed the view that the police needed to be more assertive and proactive in its operations in order to reduce of the level of crime and restore a sense of calm to the country. We discussed the challenges posed by the itinerant nature of many of the crimes, especially murder, that were being committed and he assured me that within the next few days I would see an intensification of crime-fighting activities.

He expressed the desire for himself and myself to have more frequent discussions, and said that he had to accept the blame for not seeking to meet with me outside of the formal National Security Council meetings more often. I assured him that whenever he so required I would be available.

The strategies developed to deal with the problem of crime represent the professional competence and experience of the commissioner and his senior personnel. I don't question the validity of these strategies. It is in the execution of these strategies that much more needs to be done and much greater effort must be made.

On Sunday last, I was advised by the chairman of the Police Service Commission that the commissioner had tendered his resignation, which the commission had accepted.

I have since received a copy of the commissioner's letter of resignation which is dated Tuesday, October 20, 2009, three days before he met with me in my office on October 23. The commissioner had tendered his resignation in June of last year but had subsequently withdrawn it.

No commissioner of police can be blamed for the crime that is plaguing us but it is the job of the commissioner to mobilise the police force and all the resources at his command to bring the level of crime within tolerable limits. He cannot do it alone. He needs the support of the Government and the entire society but, ultimately, the responsibility to lead and organise the police force is his, and he, like the minister, me and everyone who leads, must be held accountable.

Commissioner Lewin has taken significant steps to stamp out corruption within the force. He must be commended.

Much more is left to be done and whoever succeeds him must continue that process vigorously and relentlessly. The organisational changes that he initiated must also be continued.

Preliminary discussions have been held between the Government and the Opposition regarding more far-reaching measures to transform the police force. These discussions have not progressed as speedily as we had hoped and it is we, not the Opposition, that must take responsibility for this. It is important that these discussions be advanced quickly, especially in view of emerging views as to the direction in which the transformation of policing in Jamaica needs to go.