Troy’s memory weak; Glenn and lawyer sow confusion
Those often delayed D.F.C. hearings resumed today at the Belize Institute of Management. News Five’s Janelle Chanona was on hand for all the protests, denials, and lapses of memory.
Janelle Chanona, Reporting
After weeks of anticipation, today the former Chief Executive Officer of the Development Finance Corporation Troy Gabb and former chairman of the board, Glenn Godfrey appeared before the Commission of Inquiry investigating the corporation. There were no earth shattering revelations. Both men showed up with their attorneys, there were lengthy pauses and in Godfrey’s case, plenty of legal drama and no small amount of confusion.
The highlight of the day came after lunch when Godfrey’s new attorney Elson Kaseke showed up with a letter that threw a spanner into the workings of the Commission.
Merlene Bailey Martinez, Co-Chair, D.F.C. Commission of Inquiry
“We give you notice that although our client will appear with us at the anticipated hearing to comply with the summons – I’m not sure which summons, if he hadn’t been served – and give such evidence as at law can be directed by your Commission, we will add in issue take several objections against your Commissions hearings. We will more particularly flesh out our objections in our oral presentation before your commission. Lastly, be informed that our appearance and the appearance of our client along with us, based on our advice, should not be viewed by your Commission as an acquiescence by our client as to the jurisdiction, legality or impartiality of your Commission, which we challenge, nor as a waiver of any of our client’s rights which he has or may have now or in the future against your Commission or against any other person or institution or in respect of any other matter respecting or touching upon your Commission.”
But when Godfrey himself did the talking, those points became clear.
Glenn Godfrey, Former Chair, D.F.C. Board
“Mr. Commissioner I am prepared to waive any service of that. As far as my legal advice is concerned that forensic report you there is not worth the paper it is written on. The best advice would be to try to recover whatever money, the seven hundred and fifteen thousand dollars….”
Merlene Bailey Martinez
“Listen Mr. Godfrey. Mr. Godfrey…”
Glenn Godfrey
“May I finish please? May I finish, I’m making a…”
Merlene Bailey Martinez
“No. I need to interrupt you at this point. I’m taking the chair at this point. I’m taking the chair at this point. I would appreciate it if you would not cast any aspirations or make any derogatory remarks about, one, a document you have never seen, right, according to the letter from Mr. Kaseke, right. And I don’t know who you understand it from but this Commission will not be use for you to make that kind of comment based on some information you receive from somebody else on a document that the commission has tabled. So, I would prefer that you would stick to whatever points you had about your presence here and in the matter of waiving your rights, the Commission is of the opinion that that is not the road we want to go down.”
Glenn Godfrey
“We are here today, we want to give abreviance; I’ve come a long way to be here. I have businesses abroad; I have come here at great expense. I would really like to get on with this hearing, we are prepared to speed it up by – we are not saying we are being ambushed or anything. If you give us the notice of the things you want to question us about, we will take fifteen minutes and then we can proceed. I don’t want to waste time. Please.”
Merlene Bailey Martinez
“Mr. Godfrey you are saying that but the letter is saying otherwise, that you have some concerns over the service and you have some concerns over disclosure. Are you now saying that that is not so?”
Elson Kaseke, Attorney for Glenn Godfrey
“Well I am instructed my client to say that is what he is saying.”
Glenn Godfrey
“Chairman, I’m prepared to go on until twelve o’clock tonight to get this thing over, please.”
Merlene Bailey Martinez
“No, we don’t have that option sir. We do not have that option.”
Elson Kaseke
“Are we allowed to ask the Commission why?”
Merlene Bailey Martinez
“Because the Commission has a timeframe within which it operates Mr. Kaseke. You said normal business hours here; the Commission has a timeframe within which it operates. And the Commission would much rather be on proper footing in terms of disclosure and in terms of the summons being served. We do not want to have a situation where any testimony that Mr. Godfrey gives, at this point in time, is subject to some adverse judicial review because he was not properly served and the information was not properly disclosed to him.”
Godfrey is now scheduled to reappear before the Commission at nine-thirty on Tuesday morning. Troy Gabb was first to testify but before doing so he read from a prepared statement that also dismissed the report of the forensic auditor and challenged the legitimacy of the Commission itself.
Troy Gabb, Former Chief Executive Officer, D.F.C.
“I have been advised that this report was prepared in a manner which breaches my legally protected rights under the principles of natural justice in that at no time did the forensic auditor check any matter with me concerning my stewardship of the D.F.C. in which adverse comments or opinion are expressed against me in this report. I am made to further understand that the very method of the appointment of the forensic auditor is shrouded in illegality, in that the legal instrument establishing this Commission of Inquiry, in none of its terms of reference authorizes the Commission to appoint a forensic auditor. And that under the law neither the government or any of its employees in the Ministry of Finance, under the Commission of Inquiry Act or Statutory Instrument #24 of 2005 and Statutory Instrument 123 of 2006 setting up the Commission of Inquiry, has the authority to appoint a forensic auditor for the Commission. Having stated these matters, I am prepared to assist your Commission in legitimate questions and issues you may wish to raise with me, bearing in mind that as C.E.O. for the period seventeenth September 2001 to the thirtieth June 2004 the list of areas you sent me on the eight of February 2007 covered a number of policy decisions and issues which were the responsibility of the board of directors.”
Merlene Bailey Martinez
“When you were recruited what special skills do you think you were required to bring to the Development Finance Corporation?”
Troy Gabb
“Good management skills.”
Merlene Bailey Martinez
“Management in what? What…?”
Troy Gabb
“Management in business, management in credit control; all of the above. Human resource management, which I believe at that point in time I was extremely rounded. I had a lot of experience in dealing with all various areas of business, along with the training I was receiving at the time would have made me very, very qualified for a job of that sort.”
Merlene Bailey Martinez
“Ok, and you believe that you brought those skills to bear in the Development Finance Corporation – in the management of the Development Finance Corporation?”
Troy Gabb
“Absolutely.”
Merlene Bailey Martinez
“I guess I would have to ask you that later, why we are here today?”
“Without the promised assistance by the Government; this promised assistance by the Government has reduced a net loss from the current year from sixty-one million dollars to a net loss, Mr. Gabb, of four hundred of thirteen million dollars.”
Troy Gabb
“That is not the D.F.C.’s fault. I’m saying to you, that if you look at the financials, the Government has put tremendous pressure on the D.F.C. to grow this economy and the D.F.C has done so – put thousands of people in houses, thousands of students through school, have done thousands of loans to small businesses – and that’s the obligation that the Government is taking on for those projects that is ensued. I am saying to you, categorically, that if you look at the financials the D.F.C. is showing a profit and that is the function of any person who is running it. We were acting as agents in some cases for the Government in terms of taking on these housing projects but the fact bears out that it is a profitable institution showing a net surplus.”
Merlene Bailey Martinez
“You are saying that under your stewardship, the D.F.C. turned a profit. I am saying that it’s under funds being transferred into the D.F.C. by the Government of Belize, according to the auditor, that is what allowed the D.F.C. to turn a profit and it’s also under your stewardship, Mr. Gabb, it’s also under your stewardship that the D.F.C. had been put under observation by this Commission of Inquiry. It’s also under your stewardship”
Troy Gabb
“I can’t comment to that. That’s policy.”
Merlene Bailey Martinez
“No, I’m talking about facts. It’s under your stewardship.”
Gabb denied following any directives from the Minister responsible for the D.F.C. Ralph Fonseca, maintained that any related party transaction was handled according to proper procedure and regarding the mysterious March 17th meeting regarding the fifty million dollar bond obligation to the Belize Bank, Gabb says he wasn’t at the meeting either and was simply following the instructions of Executive Chairman Omar Espejo when he instructed his staff to proceed with the facility. But things got interesting when the Commission focused on Gabb’s own dealings with the DFC.
Merlene Bailey Martinez
“On the seventh of May 2000 you bought a property from one Anna Vellos for twenty-four thousand dollars, that is on the land transfer document. You subsequently on the thirty-first of October 2002, you entered into an agreement for the sale of this property to a Mr. Roy Young for one hundred thousand dollars’ that’s a difference of seventy-six thousand dollars between May and October. This purchase from you by Mr. Roy Young was facilitated with a loan from the Development Finance Corporation at which this property would have been used as collateral and there were a couple of things with that. One, who appraised this property that you sold for a hundred thousand dollars? Where was the appraiser? Was there an appraiser submitted to the D.F.C.?”
Troy Gabb
“That should be in the file.”
Merlene Bailey Martinez
“There is no appraisal in the file Mr. Gabb, so I’m asking you”
Troy Gabb
“That is a straightforward transaction fully approved by the Credit Committee of the D.F.C.”
Merlene Bailey Martinez
“Actually, Mr. Gabb, it was not approved by the Credit Committee. It was submitted to the Board Management Credit Committee but it was approved unilaterally by Mr. Godfrey. He approved it. Mr. Godfrey was not a member of that committee> In what capacity then did he approve the loan that you are stating was submitted to the Board Management Credit Committee.”
Troy Gabb
“Well as far as I’m concerned, this bears his approval and so that question can be raised with Mr. Godfrey as to what capacity he had to sign to approve anything.”
Merlene Bailey Martinez
“I’m just telling you that it is not a run of the mill transaction; it was an unusual transaction that benefited you.”
Reporting for News Five, I am Janelle Chanona.
On Friday former Minister of Finance Ralph Fonseca is expected to testify. Also, late word from the Commission is that the Tuesday date for Glenn Godfrey may have to be changed to Wednesday due to scheduling conflicts.
