Former PBS CEO John Bundy was given the go-ahead by the company's board to seek the lease of a new car fleet, former board director Frank Portelli told an Industrial Tribunal on Tuesday.
Mr Bundy is suing PBS after he was dismissed following accusations that he entered into a €500,000 car lease deal with Burmarrad Commercials without the board’s approval.
The lease deal for 14 vehicles includes Mr Bundy’s own car.
Taking to the witness stand, Dr Portelli said the former CEO had flagged the fact that the company’s car fleet was ageing. The board gave Mr Bundy the go-ahead to seek a new lease deal in 2016, soon after his appointment that August.
The former PBS board director told the tribunal he had actually abstained in the board vote confirming Mr Bundy’s appointment, as he was not happy with the way his predecessor Anton Attard had been replaced overnight.
Mr Attard’s sudden removal meant PBS was contractually obliged to compensate him.
READ - ‘I don’t give a damn about the board’- John Bundy
The former PBS director said Mr Bundy would update the board from time-to-time about which companies he was seeking quotes from to replace the car fleet.
Asked under cross-examination if these instances were minuted, Dr Portelli said the board secretary was very meticulous in his minute taking.
Prior to Dr Portelli’s testimony, a representative from Burmarrad Commercials said negotiations with Mr Bundy always took place in the presence of other management officials from PBS.
Correspondence about the lease was also exchanged with multiple PBS management officials.
Asked under cross-examination if he was aware Mr Bundy has no authority to sign the deal, the Burmarrad Commercials representative said this was never communicated to him by PBS.
The representative said Burmarrad Commercials was aware PBS was shopping around for quotes, and his company’s was the most competitive.
Mr Bundy has denied any wrongdoing in the deal.
He was booted out as PBS’ CEO after a no-confidence vote by the board of directors in November 2017.