By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE executive committee of the Bahamas Union of Teachers has raised concerns about a “serious” procedure breach in which more than $1.1 million from the union’s pension and savings accounts were allegedly spent in contravention of union policies.

The executive committee has met with auditors who will perform an independent audit to determine if any offence has been committed, according to BUT Secretary General John Musgrove.

The news comes as BUT President Belinda Wilson and Treasurer Lorraine Knowles wait to see if an appeals committee will uphold the executive committee’s decision to suspend the pair for six and three months respectively in connection with alleged union “infractions”.

The three-member appeals committee, according to Mr Musgrove, was expected to be appointed yesterday evening and will have until Sunday to reach a decision.

A memorandum about the alleged procedure breach, signed by Mr Musgrove, was leaked to The Tribune yesterday. The memo, dated December 29, 2014, revealed that “serious constitutional breaches” have allegedly occurred within the union.

It said: “…(Monies were spent) from the pension account and savings account for matters unrelated to the purposes for which they were established, without the approval of the (Annual General Meeting) and without the knowledge and consent of the executive committee.

“The (AGM) established two accounts for particular purposes. The savings account was established in 2007; 15 per cent (was) due to be deposited to this account as a savings; this was amended by a subsequent AGM to 10 per cent. In 2009, another account was established for the purpose of a pension. Eight dollars per member per month was set aside to provide a benefit for members upon their retirement. No benefit was to be paid until 2010. Since these accounts were established by the AGM for stated purposes, any spending from these accounts for matters unrelated to their purposes needs approval from the AGM.”

Mr Musgrove said yesterday that money has been taken from the accounts and spent without the AGM’s approval. The reason given for this, he said, was to cover operational expenses.

However, Mr Musgrove told The Tribune: “We don’t care what it was used for. Those two accounts were not to be touched by anybody for no reason according to the AGM. Furthermore, wouldn’t operational needs already be budgeted for?”

He was contacted for comment after The Tribune received the memorandum.

In that he wrote: “The BUT has an operations account which receives 75 per cent of the dues members pay. The executive committee cannot accept that after receiving three quarters of the income to operate, that any officer … should resort to spending from both accounts.”

According to the memorandum, the money in the pension account will be transferred to a company for management starting this month.

Members who have been in the plan since 2009 are entitled to more than $420 to start an individual pension plan with the management company, it said. The memo added that when considerations are made for the members who have already retired and the money approved by the AGM for the construction of a building in Grand Bahama, each member who has been in the plan from 2009 should receive at least $350.

However, the memorandum said that based on the balance left in the pension account, “a member who has been in the plan from its inception cannot get more than $125.”

“Those who joined the plan after 2009 will receive even less,” it said.

Mr Musgrove said because “huge amounts” were spent from the savings account, that account is not able to replenish the pension account.

“This spending was hidden from the AGM and from the executive committee,” he claimed.