The Water Authority-Cayman has defended its spending of $1 million on Christmas cash gifts for staff over a five-year period after the expenditure was highlighted in a new auditor general’s report.
The publicly owned utility spent approximately $1 million in total on Christmas cash gifts – around $1,200 per employee per year, according to the report, which was tabled in Parliament last week.
The auditor general noted the Water Authority’s total benefits bill of $1.8 million, which also covered Christmas meals, corporate wellness activities, gift cards, honorariums and employee awards, was equivalent to 74% of all staff welfare spending across the entire public sector over the same period.
Asked about the expenditure, the Water Authority said the payments were in lieu of a bonus structure and had been in place for more than two decades. All staff members are paid the same amount each Christmas.
“The Authority does not have a bonus structure; however, it does have robust employee support programmes, many of which have been in place for over 20 years,” a spokesperson said.
“One of the supports is an annual monetary Christmas gift to all employees, reflecting its ongoing commitment to acknowledging staff contributions and organisational excellence.”
The spending was highlighted in the auditor general’s report on public sector pay and benefits, which have now risen to more than $700 million annually, equivalent to more than half of the country’s total budget.
The report indicates costs from increased hiring and cost-of-living pay adjustments have led to a surge in spending that has outstripped government’s revenue growth putting a strain on the country’s finances.
The government awarded pay increases totalling around 10% to all public servants between 2020 and 2024 through two cost-of-living adjustments, on top of $27.8 million in one-off honorariums, with a further 5% increase, costing an estimated $25.2 million annually, taking effect in January 2025.
The disclosure coincides with a Water Authority proposal to raise customer rates that has drawn concern and opposition from politicians. The authority is seeking to raise water rates by 17.53% from July 2026, having been confirmed as eligible for the increase by the auditor general’s office under a prescribed calculation methodology.
The Water Authority board said it had resolved to proceed with a reduced increase of 3%, which it said would add approximately $3 per month to the average customer’s bill. The authority said the adjustment was needed to fund critical capital development projects over the next decade.
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