Crogga ordered to pay ex-CEO £130,000 in unpaid wages dispute

Energy company behind proposals to extract gas from island’s seabed

The energy company behind the Isle of Man seabed gas extraction project, Crogga, has been ordered to pay more than £130,000 after a court ruled in favor of a former director in a dispute over unpaid wages.

Diccen Sargent, who served as chief executive before leaving in March 2022, claimed he suffered illegal deductions from his salary.

HOW DID THE DISPUTE AROSE?

In fall 2020, Crogga executives agreed to defer salaries during a financially difficult time.

This led to an appeal to shareholders, raising £800,000 in crisis funding.

Mr Sargent deferred his salary on the condition that it would be repaid with a 15 per cent increase in the “next funding cycle”.

Crogga, however, disputed the timetable, saying the refund was only due after funds had been raised for a 3D seismic survey as part of the £12.75m project.

The court ultimately sided with Mr. Sargent, finding that the deferred salary was due earlier.

WHAT WAS AWARDED?

Mr. Sargent received:

• £119,800.00 deferred salary
• £10,000 for unused paid leave
• £1,846.15, which equates to an extra week’s pay

The court ruled that the 15 percent increase could not be considered salary and was therefore not included in the award.

WHAT HAPPENS NEXT?

Mr. Sargent has until January 16 to seek recovery of legal costs.

Crogga’s attempt to amend its license to not conduct a 3D seismic survey to begin drilling an appraisal well remains under review by the Ministry of Infrastructure.