Air Vanuatu ATR72-500 aircraft ... which the international and domestic service operator uses including on its flights between Port Vila and Suva’s Nausori Airport. (inset Air Vanuatu CEO ... Joseph Laloyer, Photo: VANUATU DAILY POST)
Source: VANUATU DAILY POST/RNZI
Port Vila – Deputy Chief Executive Officer of Air Vanuatu and Internal Auditor, Jean-Paul Virelala, has been sacked by the board of the government-owned airline for gross misconduct.
The Chief Executive Officer, Joseph Laloyer, earlier wrote to Mr Virelala advising him that the Board of Directors Air Vanuatu (Operations) Limited is considering terminating his employment.
Report breach
The letter to Mr Virelala states that the Board considered that his action in releasing the report he himself prepared titled “Air Vanuatu (Operations) Limited Recovery Plan February 2013” was a “clear and very serious breach of the terms of your employment agreement with Air Vanuatu”.
Expat allegations
Mr Virelala’s report directly blames expatriates and previous managements for losses, without any mention of losses incurred under his own management when he was CEO. Mr Virelala reportedly issued the report in his capacity as Internal Auditor without the prior knowledge of the Chief Executive Officer.
The report claims the airline has been technically insolvent since 2008 and is only operating as a result of a government guarantee.
This is contrary to earlier news stories released by Mr Laloyer that the airline was now returning to profitability.
The report lays blame on the airline’s reported financial plight over the past four years squarely on previous management of the airline when Terry Kerr was CEO.
There have been previous disputes over the management of Vanuatu’s national airline, which operates both international and domestic services. Mr Laloyer was himself previously at the centre of one amidst reports the board tried to fire him.
Mr Laloyer’s letter to Mr Virelala detailed the allegations or grounds for serious misconduct by his deputy.
Details of misconduct
1. That he breached clause 8 of his employment contract with Air Vanuatu by releasing confidential information that included details of loan agreements between Air Vanuatu and various financial institutions and profit and loss figures that had not been audited or approved by the Board of Directors;
2. that Mr Virelava acted in breach of clause 9 of his employment contract by causing to be published the report that concerns the duties and business of Air Vanuatu without the consent of Air Vanuatu as his employer;
3. that he acted in breach of the line of responsibility he has which is to the Chief Executive Officer and the Board of Directors;
4. preparing a controversial report which is beyond his scope of responsibility;
5. that Mr Virelala acted in breach of the Code of Conduct of Air Vanuatu by disclosing confidential Air Vanuatu information without the prior consent of the Chief Executive Officer and for failing to maintain the confidentiality of Air Vanuatu documents.
Financial position
The letter states that the fact that Mr Virelala divulged confidential information in that report to the public has jeopardized the financial position of Air Vanuatu. It put the Board of Directors in an awkward position and painted Air Vanuatu in a very negative light.