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Kay Forbes-Smith Sues the Government

The Davis administration has been hit with a $400,000 lawsuit by former head of the Disaster Reconstruction Authority.



NASSAU, BAHAMAS – The Davis administration has been hit with a $400,000 lawsuit by former managing director of the Disaster Reconstruction Authority (DRA), Katherine Smith.

She accused the DRA of breach of contract and is seeking damages for the salary and allowances she would have received over the next two years, had her contract not been terminated.

Berthony McDermott reports.

Former DRA Managing Director, Kay Forbes-Smith filed a lawsuit against the Davis administration, claiming she’s owed more than $400,000 for breach of contract after being terminated last year.

The Writ of Summons dated December 21, 2021 says Smith’s employment contract which took effect December 3rd, 2019, was set to expire November 30th, 2020.

The contract states that the DRA agreed to pay Smith an annual salary of $110,000 in monthly installments of $9,166.66, and an annual housing allowance of $30,000, in monthly installments of $2,500.

Additionally, she was also granted an annual duty allowance of $15,000 in monthly installments of $1,250, and a monthly fuel allowance of $250.

Under the contract, she was also entitled to a 15% gratuity of the sum received under the contract.

While the former senate president is required to give a six-month termination notice, there were no provisions for the DRA to terminate the contract before its expiration.

The recently served writ notes the government terminated Smith’s contract on, or around September 29th, 2021, which is in breach of the contract by way of a letter from the Office of the Prime Minister (OPM).

The writ says: “By way of damages for the aforementioned breach, Ms. Smith is entitled to a contractual sum for termination of her employment in breach of contract in an amount equal to her salary and benefits for the unexpired term of the contract.”

That sum equals $408,333.16.

Smith claims she’s owed 26 months worth of salary totalling $238,333.16, a housing allowance of $65,000, duty allowance of $32,5000, fuel allowance of $6,500, and gratuity equalling $66,000.

Smith is also seeking interest accrued from the date she received the letter from OPM, any additional relief the court may deem justified, and legal costs.

Smith is a known member of the Free National Movement (FNM) and headed the communications team in the runup to the last election.

She was among other government officials that were either terminated or stepped down following the September 16th general election.

She is represented by Callenders and Co.

When contacted for comment, Attorney General Ryan Pinder said he had no comment on the matter as it is now before the courts.