JUTC owes almost $1 billion in legal costs
The Jamaica Urban Transit Company (JUTC) is struggling to settle legal claims and other legal costs amounting to nearly $1 billion.
Managing director of the JUTC, Colin Campbell, yesterday admitted that the company was in significant arrears in the payment of claims as a result of awards made by the court against the state-owned bus entity.
Campbell told members of Parliament’s Public Administration and Appropriations Committee that the company has a self insurance fund which is normally used to cover the cost of claims.
However, he said the fund has not been in operation since 2009, as the money was used to secure overdraft facilities at the National Commercial Bank.
He said the company was only able to secure the overdraft with other assets and release the funds this month.
Committee member Mike Henry indicated that the claimants had a right to seize buses if they were not paid sums awarded by the courts.
In response, Campbell said the company has tried to negotiate plans to avoid the embarrassment of seizures.