Tussle at Unit Trust

A rift is developing between the Government and the Unit Trust Corporation (UTC) board over the contract renewal of Clarry Benn, UTC’s Executive Director. One one side, sources say, is Prime Minister Patrick Manning; the other is the UTC board. At stake is the jewel in the financial sector and cash cow, the UTC. In an interview on Tuesday, Benn admitted that while his contract had ended on August 31, 2003, he is still serving the UTC as Executive Director. He could not say why his contract was not being renewed, or if it was going to be. “Yes, my contract did end on August 31, 2003 but I work with a Board and I am still here,” was all Benn would say.

But sources say that government is not willing to renew Benn’s contract and  instead wants to appoint Renrick Nickie, Executive Manager, Marketing Operations and Information Services to the post. Benn has been with the UTC since its inception 21 years ago. Sources say there may be “political overtones” in the refusal to reappoint Benn. Chairman, UTC, Hubert Alleyne is said to be supporting Benn’s re-appointment as executive director. He could not be reached for comment. Nickie said it will be very “inappropriate” to comment on such a matter at this point in time. He said he is not involved in the decision making process and has to “wait and see what happens.”

UTC’s assets grew by ten percent from the end of last year and 38 percent from the corresponding period in June last year. Gross income reached $346.4 million, marginally below the $382.7 million for the corresponding period last year.  With respect to the management operations, income increased by $3.2 million to $87.8 million. Net income increased by $4.9 million, which resulted in an addition to the retained earnings of $43.9 million. Retained earnings as a result, reached $261.2 million as at June 30, 2003. The Board of Directors, (UTC) also agreed last month to make a special bonus distribution of $56 million to unit holders on record as at August 31, 2003. This distribution will be paid out of retained earnings which as at the end of June 2003 amounted to $261.2 million. The UTC has in excess of 400,000 unit holders.