Gov’t Employees Being Terminated Because Of Government’s ‘Financial Crisis,’ B.O.C. Termination Letter Says

While Governor Kenneth Mapp has said on multiple occasions that the territory’s financial condition has been improving and that government employees would not be furloughed or terminated, some workers employed at the Bureau of Corrections have been terminated because of the “continued financial crisis” affecting the government, a contradiction that Government House refused to address on Wednesday, with the Mapp administration’s acting communications director, Samuel Topp, choosing to instead chide a Consortium reporter for asking Government House about the matter.

Mr. Topp, after arguing that Government House should not be the first point of contact concerning whether or not the administration was terminating employees because of financial constraints, contending that the government department experiencing the trouble should be reached first, later said he had no idea what was going on and would not comment on the situation.

“The response is, from my perspective, I have absolutely no idea what that person may be talking about,” Mr. Topp said. He later added, “I have no information to confirm anything that is being alleged in that letter or any correspondence with you regarding layoffs because of inability to pay. As far as I know, payroll is going to be met tomorrow, and there is no indication that it is not going to be met at anytime in the future.”

But the letter informing former B.O.C. employee Fred Esannason that effective May 19 he would no longer be employed at the Bureau of Corrections because of continuing “financial crisis” at the central government, was signed by B.O.C. Director Rick Mulgrav. It reads:

“Due to the government’s continued financial crisis, the Bureau of Corrections has been forced to consolidate/eliminate positions and/or services. Therefore, it is with considerable regret that I inform you of your dismissal from your position at B.O.C. as project coordinator, effective May 19, 2017. You will be compensated through June 16, 2017.”

The letter continued: “This action has been made necessary due to the government’s lack of funds. I wish to assure you that this separation of employment is not related to your job performance. I regret that circumstances have made such action necessary and unavoidable.”

Mr. Mulgrav, contradicting his own letter, told The Consortium late Wednesday that the terminations at B.O.C. were not necessarily associated with financial constraints at the central government. Instead, he said, the employees had been terminated because their positions at B.O.C.  were duplicates and needed to be eliminated. Asked whether the project coordinator position that Mr. Esannason served in was a duplicate, Mr. Mulgrav said it was. He said Mr. Esannason was chosen for termination because B.O.C. followed its seniority protocol, suggesting that the person who remained employed at the bureau had served for a longer period of time.

“If you had duplicate positions doing more or less the same type of work, it didn’t make sense,” Mr. Mulgrav said. “So we’re looking at cutting back all the way around at the Bureau of Corrections in order to reach our goals.”

But in a phone interview with Mr. Esannason following the phone interview with Mr. Mulgrav, Mr. Esannason flatly denied the director’s statement. ”

“That’s a lie,” Mr. Esannason charged, describing his position as an employment coordinator whose duties included working with inmates to help them secure jobs, as well as to organize video visits, among other duties. “There is no duplication of that job. Lies.”

Mr. Mulgrav said three B.O.C. employees so far have been terminated: a maintenance position and a warehouse position were the two others. He said the warehouse position was a duplicate, while the maintenance position “wasn’t being utilized at all for its original purpose.” Mr. Mulgrav added that further terminations were “possible in the near future.”

The reasons for the employees’ dismissal, as stated in the letter, brings to the fore a continuing tumultuous financial condition at the central government, even as the governor continues to paint a picture of stability. During a recent press conference, he said tax increases levied through his Revenue Enhancement and Economic Recovery Act of 2017 — which raised taxes on sugary drinks, alcohol and tobacco products, as well as hikes to property and timeshare unit taxes — had improved the government’s financial standing, and that there would be no need for furloughs, layoffs, shorter work weeks and shortened school days. He made those claims while reassuring residents earlier this month that the territory would not fall into darkness because the Virgin Islands Water and Power Authority had reverted back to oil.

In praising Senate Democrats who supported the bill, Mr. Mapp said, “Because of their vote, we can solve this problem and assist the Water and Power Authority. Because they voted yes, no government worker is struggling in terms of working 80 hours per pay period. Because they voted yes, no school in this territory is being closed. Because they voted yes, we’re not only able to keep the lights on, keep the payroll intact, but are now releasing income tax refunds.”

Yet, Mr. Mapp’s comments came against a backdrop showing a government that has become overburdened with obligations, many of which its failing to meet because of its financial position — a situation that became apparent after the bond market refused the government’s bonds twice in recent months, leaving the territory with a structural deficit of $100 million that local leaders have been working to offset.

The repercussions have been visible: The territory’s hospitals are in dire need of financial support to make critical repairs, with the Juan F. Luis Hospital suffering from major sewage and drainage issues; the Charles W. Turnbull Library is closed because of a malfunctioning chiller; construction at the Paul E. Joseph Stadium remains in doubt, and financial problems at W.A.P.A. — the territory’s sole power supplier — have gotten worse, forcing the water and power company to revert back to oil — which it worked for years, spending over $200 million to get away from.

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