Mon | Sep 24, 2018

JUTC bars employees from renegotiating and refinancing loans

Published:Wednesday | September 24, 2014 | 2:57 PM

Daraine Luton, Senior Staff Reporter

KINGSTON, Jamaica:

The Jamaican Urban Transit Company (JUTC) is to bar its employees from renegotiating or refinancing loans with their respective financial institutions.

The move is part of a plan to deal with outstanding salary deductions which were to be paid to third parties.

In written responses to questions asked at the Public Administration and Appropriations Committee (PAAC) of Parliament, the JUTC said due to its inability to honour its financial obligations, a decision was taken in March to write to all third parties regarding the cessation of all new salary deductions.

It said that as a consequence, employees have been prohibited from renegotiating or refinancing loans with their financial institutions.

The value of salary deductions which have not been honoured by the JUTC has been calculated at $106 million.

Colin Campbell, the managing director of the JUTC, said also that the bus company has been tapping into monies that have been deducted from workers' salaries to honour loans, savings and insurance payments to third parties.

"That is one of the problems of the cash-flow situation why we need to have an increase in the fares.

When the revenue is insufficient to pay bills, these are the kinds of things that happen," Campbell said.


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