The College of the North Atlantic offers programs in Qatar to about 2,300 students. (CBC)

The Newfoundland and Labrador government admitted Monday that mistakes – including overpayments made to employees at a college campus in Qatar – add up to about $5 million in salaries, fees and benefits that shouldn't have been paid out.

Education Minister Darin King said in a statement that 35 per cent of College of the North Atlantic employees with three-year contracts ending this year and 30 per cent of employees with similar contracts ending in 2011 are involved in the overpayment.

King also announced Monday that he has accepted CNA president Jean Madill's resignation.

In her resignation letter, a copy of which has been obtained by CBC News, Madill took a parting shot at the provincial government.

"It is with a very sad heart and deep regret that I am informing you that I tendered my resignation from my position of President and CEO, College of the North Atlantic on Sunday, effective April 26, 2010.

"I cannot be supportive of the manner in which the Government of Newfoundland and Labrador handle issues related to our College. I am in position of all of the responsibility and none of the authority," she wrote.

King's statement said that as "a result of these salary overpayments, the college overcharged its management and benefits fees, which are paid as a percentage by the State of Qatar" to CNA.

"A portion of these will now need to be re-paid to the state, which is estimated to be in the range of $5 million," the statement said.

Late Monday afternoon, a provincial official explained that the employees had been overpaid and as a result of that, the college miscalculated how much Qatar paid in fees and benefits. According to the official, employees had been paid $3.5 million too much in salaries and $1.5 million in fees and benefits. The official also confirmed that Madill is not one of the employees who had been overpaid.

King said employees will continue to receive their current salary for the remainder of their contracts.

He said the government is investigating how the salary errors were made, and is hiring an "external consultant to conduct a review of this situation and recommend changes to ensure protocols are in place to prevent a similar occurrence in the future."

CNA's Qatar campus employs about 400 faculty members and provides programs to about 2,300 students. It opened in 2002.

In a statement issued less than two hours after revealing the overpayments, King said Madill had tendered her resignation and the government had accepted it.

King said Darrin Pike, the deputy minister of education, will serve as acting president and that a search will start immediately for an interim president.