Corporate Governance Issues at the Jamaica Tourist Board

A week ago it was reported that all the members of the Jamaica Tourist Board, save its Chairman John Lynch, handed in their resignations en-bloc to the Minister of Tourism, the Hon. Ed Bartlett. Mr. Lynch’s resignation from his previous place of employment, Unique Vacations, around the same time did not go unnoticed. While no public statement was made by any of the former Board members, Minister Bartlett told the nation that the Board Members offered their respective resignations to “give the Minister a free hand in choosing a Board to chart the new way forward for the JTB in light of the global conditions”. The word on the ground, however, was that the Board members were not comfortable with the imminent appointment of Mr. Lynch to the post of Director of Tourism as this would ostensibly make him the Executive Chairman. At the time, the Minister told us that a Committee was deliberating on applications for the post to replace outgoing Director Basil Smith. Minister Bartlett denied that a decision had already been made. It was announced in the newspapers today that Mr. Lynch has been appointed Tourism Director. Opposition Spokesman on Tourism, Dr. McNeil while approving the appointment has correctly warned that Mr. Lynch must not be reappointed Chairman.

What is happening here?

1. Mr. Lynch’s resignation from Unique Vacations at the time strongly suggested he was promised the job. The idea of having a committee supposedly meeting to rubber stamp the wishes of the Minister does not augur well for good Governance

2. Board Members apparently knew that the Minister wanted Mr. Lynch to be Executive Chairman and apparently voiced strong objections. Minister Bartlett apparently cannot tolerate such behavior and asked them to resign. If a Minister appoints a Board, he must allow them to govern. Already there is political involvement in naming a Board; even so a Minister should not willy-nilly change his Board over what appears to be their failure to support a breach of good Corporate Governance.

3. It cannot be that when external conditions change that a Board should be changed. Boards are appointed specifically to provide strategic guidance and good governance in changing times.

4. Good Corporate Governance practices strongly discourage the Executive Chairman position. This is especially so in the Public Sector, where accountability is not very popular.

5. Finally, I am disappointed with the Media in allowing the Minister to get away with all that has happened; despite the protestations by Dr. McNeil in what I believe have been well balanced arguments.