KINGSTON - Prime Minister Bruce Golding on Tuesday confirmed that Derick Latibeaudiere was fired from his post as Bank of Jamaica governor based on "exorbitant provisions" in his contract.

He said Latibeudiere was being paid JAM$38 million (BDS$861 190) a year - more than the chairman of the US Federal Reserve.

Golding told the House of Assembly that the Ministry of Finance did not initially say that Latibeudiere was fired, as not all the information regarding his contract was available at the time.

He described the contract as highly unusual and strange.

Latibeaudiere was earning a basic salary of JAM$14 million a year. However, he was also earning more than JAM$10 million in rental allowance, and just over JAM$13 million to maintain the house.

It was in relation to the provisions for housing that Golding said the contract was most absurd.

Provisions were made for a fully furnished and maintained official residence, and where one was not provided the bank was responsible to make unlimited rental and maintenance payments.

The prime minister also announced that the government would be reviewing the contracts of all employees earning more than JAM$10 million per year.

He said the decision followed the revelations in respect of Latibeaudiere's controversial contract and the government wanted to ensure that there were no similar arrangements in the public sector.

The prime minister also blamed the Ministry of Finance under the previous People's National Party administration for the governor's contract, which he said was never brought to the attention of the Cabinet.

Golding said the former governor's contract breached the guidelines of the Ministry of Finance.

He added that a new contract would be worked out for the governor who will replace Latibeudiere and the appropriate policy covering accommodation determined.

Brian Wynter, a former deputy central bank governor and a former head of the Financial Services Commission, is to assume the post of governor on December 1. Senior deputy governor Audrey Anderson is now acting as governor.

Golding also sought to assure the House that the departure of the BOJ governor should not affect negotiations with the International Monetary Fund. (Gleaner)