Former Disaster Reconstruction Authority (DRA) Managing Director Katherine Smith is suing the government for more than $400,000 for breach of contract after she was terminated from the role last year.

A writ of summons, which was dated December 21, 2021, but only recently served, states that Smith’s employment contract went into effect on December 3, 2019, and was due to expire on November 30, 2023.

Under the terms of that contract, 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.

It also agreed to an annual duty allowance of $15,000 in monthly installments of $1,250 and a monthly fuel allowance of $250.

At the end of that contract, Smith was entitled to receive a gratuity of 15 percent of the sum received under the contract.

While she was required to give six months’ notice of her intent to terminate the contract, prior to the expiration, the contract made no provision for the DRA to terminate the contract before the expiration.

The document claims that “at all material times, Ms. Smith properly and competently performed her duties and obligations” as required under the contract.

“On or around September 29, 2021, the DRA, in breach of the contract, purported to terminate the contract ‘effective immediately,” it states.

“This was communicated to Ms. Smith by letter from the Office of the Prime Minister dated September 29, 2021.

“The DRA has wrongfully terminated the contract 26 months before the expiration date. In so doing, it has acted in breach of the contract.

“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.”

Smith claims $408,333.16 in contractual damages against the DRA.

A breakdown of that figure indicates 26 months of monthly salary ($238,333.16), housing allowance ($65,000), duty allowance ($32,500), fuel allowance ($6,500) and the gratuity that Smith would have been entitled to at the end of the contract ($66,000).

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

Smith is represented by Callenders and Co. 

She served as Senate president from May 2017 until December 2019.

Smith resigned from the role to head the newly formed DRA, which was tasked with managing recovery and reconstruction on Abaco and Grand Bahama in the aftermath of Hurricane Dorian.

Smith, a known member of the Free National Movement, which governed from May 2017 until September 2021, was among the high-profile government officials to either step down or be terminated following September’s general election.

Denalee Penn Mackey succeeded her as DRA managing director.

Click here to read more at The Nassau Guardian