They had some "issues" with that particular ATM machine quite some time ago...it's been shut down since.
As for charges in the ATM/ABM machines...I know this to be the norm.
Unless there's a relationship between banks or you have an account that doesn't incur fees with your own bank/credit union, you're going to get "dinged" by that bank/machine when you're taking out cash.
I've only found one ATM/ABM in Negril that doesn't charge an extra fee for my particular foreign bank card.