Independent Liberal Party (ILP) leader Jack Warner says Prime Minister Kamla Persad-Bissessar deliberately omitted to mention to Parliament all the perks and allowances paid to Caribbean Airlines’ Canadian CEO Michael DiLollo.
Warner, in a media release, said he has written to Finance Minister Larry Howai, CAL’s line minister, asking for further clarification on DiLollo’s salary and perks. “The ILP believes that the Prime Minister’s response to the House was deliberately incomplete since she did not state all of the CEO’s allowances,” the release stated.
On Wednesday, Persad-Bissessar, in response to a question by the ILP leader, who is the Chaguanas West MP, about DiLollo’s salary and allowances said he got a salary of US$28,000 and a housing allowance of US$5,000.
The party, in the release, questioned why she did not disclose the monthly overseas travel allowance for him and his family, his local travel allowance, his entertainment allowance and his telephone allowance, as well as “a sweetheart severance package at the end of his contract.”
The release said the ILP had “serious concerns” about the Prime Minister’s response.
Warner also asked whether CAL could afford that kind of salary and Persad-Bissessar said it was negotiated between the board and the incoming office-holder.
Salary reasonable—Vasant
Trade, Investments and Communications Minister Vasant Bharath says the US$33,000 (TT$211,000) monthly salary paid to the Canadian CEO of Caribbean Airlines Ltd (CAL), Michael DiLollo, is reasonable.
He was answering questions on the matter during yesterday’s post-Cabinet news conference at the Office of the Prime Minister, St Clair. Prime Minister Kamla Persad-Bissessar gave the salary figure in response to a question from Chaguanas West MP Jack Warner in Parliament on Wednesday.
Bharath said yesterday DiLollo’s salary was “much in keeping with that which was paid since 2006 to previous CEOs.” Seeking to justify DiLollo’s salary, Bharath said: “We are dealing with an industry that is under significant competitive pressure worldwide. “There has been significant streamlining of this sector and there have been significant mergers and acquisitions.”
Bharath said for the company to get itself out of the mire it had to acquire the services of the best people available. “And to get the best people available, you have got to pay what is expected to lure these people to come,” he added.
He said it was clear the expertise required was not available locally and consequently the CAL board “had to look outside to bring in someone who they thought would be the most appropriate fit for the airline at this time.”
Finance and the Economy Minister Larry Howai was asked to state the existing financial details of the company and said Government had allocated some funding in the 2015 budget to allow CAL to settle some of its outstanding debts.
He said CAL’s cashflows “have improved...they generated in excess of $120 million of surplus cash coming into this period which is the lean period.”
Howai said on the basis of the airline’s performance, “they should be able to maintain their cash position going forward into the new year.”
Howai said DiLollo was to present a new strategic business plan to turn around the airline, which would be presented next month after which there would be a clearer picture of how the airline would advance in the new year.
Howai said DiLollo had taken charge of the company and had done a lot to improve staff morale.
DiLollo, 47, was appointed in May, replacing Robert Corbie who resigned suddenly in September 2013.
What previous CAL CEOs were paid
Peter Davies US$34,000
Phillip Saunders US$33,500
Ian Brunton (T&T national) TT$103,000
Robert Corbie (T&T national) TT$120,000