NBS wrongful dismissal case: Former CEO awarded $79M

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Almost six years after taking the New Building Society (NBS) to court, former Chief Executive Officer (CEO) of the financial institution was earlier today awarded over 79 million dollars in outstanding payments.

Maurice Arjoon

Justice Brassington Reynolds on Monday ruled in favour of Arjoon who sued his former employer for some $550 million in damages on grounds that he was wrongfully dismissed from his post and for withholding his pension and other benefits.

In Monday’s ruling, Justice Reynolds, in effect, indicated that Arjoon suffered as a result of his wrongful dismissal from the NBS. It was stated that the former CEO should receive financial compensation.

Justice Reynolds also explained that Arjoon was entitled to his pension and severance benefits in accordance with provisions as stipulated in the laws of Guyana.

While the Court, on Monday’s hearing, did not say what this figure should be, the plaintiff’s Attorney expressed that the Court should make the calculations rather than leave it up to the opposing side. The respondent’s counsel concurred.

Even though the Court on Thursday did not award payments for damages for breach of contract under the law, Arjoon was awarded $4.1M for payment in lieu of notice, $16.1M for his severance benefits and some $59M for pension totaling $79,282,801.

According to court documents, effective July 1, Arjoon will also receive a monthly reduced pension of $372,498 for the duration of life.

The former CEO was fired over a decade ago following a Magistrate’s Court matter where he along with Operations Manager Kent Vincent and Assistant Mortgage Manager at NBS Kissoon Baldeo were all accused of conspiracy to defraud the company of $69M.

The matter was subsequently dismissed and Arjoon took NBS and 3 co-defendants to court in 2011.

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