Gabb and Godfrey are no-shows at D.F.C. hearings
The city’s delivery boys were hard at work today, but not all of them carried flowers and chocolate, because as News Five’s Janelle Chanona reports, there was no love in two letters sent by messenger this morning to the D.F.C. Commission of Inquiry.
Janelle Chanona, Reporting
Today, former C.E.O. of the Development Finance Corporation, Troy Gabb and former board chairman Glenn Godfrey were scheduled to appear before the Commission of Inquiry but when co-chairs Merlene Bailey Martinez and Herbert Lord arrived at the Belize Institute of Management this morning, Godfrey’s driver hand-delivered letters from attorney Dickie Bradley informing them that both men would not be appearing.
Merlene Bailey Martinez, Co-chair, D.F.C. Commission of Inquiry
“It says ‘Dear Commissioners re: Troy Gabb, I regret to inform you that Mr. Gabb is unable to attend today’s hearings as he is ill. I enclose a copy of his sick leave certificate. Mr. Gabb, of course, looks forward to appearing before the Commission and assist in the important hearings. He awaits your new summons as to a new date.’”
“We have also received one on behalf of Mr. Godfrey from his lawyer Mr. Dickie Bradley and it is dated the thirteenth of February but it was delivered this morning, the fourteenth of February and it says, ‘Dear Commissioners I acknowledge receipt of your letter of eight February reference Mr. Glenn Godfrey. I have been unable to hand him the summons and documents as he is out of the country from last week. I understand he is expected to return this weekend and will be available for Tuesday, twentieth February.’”
Gabb’s sick paper was issued by Universal Health Services, where he works as General Manager. Tonight we understand that he is suffering from an ear problem. The last time Gabb appeared in the public spotlight was back in December 2004 when, during the Senate Select Committee’s investigation into the financial affairs of the Social Security Board, he was summoned to discuss the S.S.B.’s dealings with the D.F.C. In that encounter, Dickie Bradley was Gabb’s inquisitor, not his attorney.
Dickie Bradley, Senate Select Committee (December 15th 2004)
“It’s just a handful of persons who would have borrowed large sums of money, for which you hold mortgages, but those mortgages are not working, they are not able to work out, and they can’t be sought. Is that your understanding?”
Troy Gabb, C.E.O., D.F.C.
“The non-performing rate for the D.F.C. stands at approximately thirty-five percent. The make up of that thirty-five percent is across the wide cross section of the portfolio and yes there are some big ones in there as well as there are some small ones. So that’s the basic makeup of the non-performing component.”
Dickie Bradley
“Of the thirty-five percent non-performing, would you say that eighty percent of that is only a handful of large mortgage holders who are defaulted?”
Troy Gabb
“I wouldn’t be able to say offhand.”
In those same proceedings, Glenn Godfrey was also questioned by Bradley regarding conflict of interest.
Dickie Bradley (June 9th 2005)
”In your opinion, was there a conflict of interest by your being at the D.F.C. and there is some dealings with St. James financial matters?”
Glenn Godfrey, Former Chairman, D.F.C. Board
”There can only be a conflict of interest if you are hiding something. If you come to me and you know I represent the Chairman, Mr. Hulse, and you also want me to represent you knowing that I represent Mr. Hulse, I can easily clear that by just telling Mr. Hulse, ‘I will represent Mr. Bradley, do you have a problem with it?’ Then there is no conflict of interest. Conflict of interest arises when it is underhanded, when it is not disclosed. That was never the case. Everybody knew of my involvement with St. James, everybody knew of my involvement in D.F.C. I don’t recall that there was any time when they had a conflicting interest between D.F.C. and St. James.”
The D.F.C. Commission of Inquiry met today to decide its next course of action but has not issued a press release to the media to indicate if Tuesday’s hearing is still on. Because as Bailey Martinez maintained this morning…
Merlene Bailey Martinez
“This is a serious setback for us. We have concerns over this setback, serious concerns because these people are key to these hearings and to information that we need to gather in these hearings, so, of course, we have some serious concerns about their inability or the fact that they are not attending the hearings today. So we will keep you informed.”
With the day suddenly free, the Commission then took the opportunity to recall forensic auditor Mark Hulse to the stand to formally ask him to delve deeper into D.F.C. policies regarding things like loan write offs, the setting of interest rates and other board decisions.
Merlene Bailey Martinez
“Please comment on the propriety of the board to go outside of its own lending guidelines – the rights of the board to go outside it’s own lending guidelines – and whether…what are these case by case basis; which cases are these that the board felt it had the right to go outside its own lending guidelines, not to change the guidelines but to go outside the ones that it had set for itself.
Mark Hulse, Forensic Auditor
“Understood.”
Merlene Bailey Martinez
“Okay. Yes, maybe I feel a little bit passionate about that one.”
Mark Hulse
“Fifteen days ago or fourteen days ago, that was just a draft report, it has changed somewhat and quite a bit since then, and I am sure that a lot of what you are asking has been incorporated because of the finality of it. However, some of it, especially dealing with shares which weren’t exactly our scope at the time, looking at shares…our research on that might be a little bit more between today and tomorrow so that part of it might not come as part of the final report which is due tomorrow. But we can do an addendum or leave those things outstanding if the Commission so requires.”
Merlene Bailey Martinez
“These matters are significant enough that they need to be a part of the general report, not an addendum.”
“We have a little difference of opinion here. Am, because the Justice Lord is saying the he thinks that the addendum is part of the report, but I have some concerns over the culmination of your contractual relationship with the government if filing that report would imply the culmination of your contractual relationship with the Government. The Commission would then not be in the position to ensure that these things form an integral part of the report.”
Mark Hulse
“In that case we will do our best to incorporate it by tomorrow evening.”
Merlene Bailey Martinez
“But we would support an extension if you were to ask the Ministry of Finance to provide you with an extension to incorporate this to as a part of your report.”
Mark Hulse
“If it’s necessary then, between today and tomorrow we will make such a request.”
Merlene Bailey Martinez
“These are serious matters that we think would be critical to the report.”
Mark Hulse
“Then shall the Commission inform all those people I listed that…”
Merlene Bailey Martinez
“Certainly we could undertake to do that.”
Lord whispering.
Merlene whispering back
Merlene Bailey Martinez
“You could make your comment Mr. Lord.”
Mark Hulse
“Please I’d like to hear it.”
Herbert Lord, Co-Chair, D.F.C. Commission of Inquiry
“No, I’m saying that’s provided that we get the permission for the extension; there was a date set for which we should hand in these matters and that’s why I was saying the date can be reached and the addendum added on and there would be no problem as far as I’m concerned. The addendum forms part of the original report.”
Merlene Bailey Martinez
“But we would have a problem if the contractual relationship ends with the handing in that report tomorrow. The Commission would have lost control over the matters that needed to be clarified. So if you could go ahead and ask for that extension, we’ll cross that bridge when we reach it I imagine.”
Janelle Chanona
“While today’s session of the DFC Commission of Inquiry was abridged and anti-climatic it will also impact the other witnesses scheduled to be called. Co-Chairs Merlene Bailey Martinez and Herbert Lord had deliberately scheduled Gabb and Godfrey for today so as to compare and contrast their answers with those of former Minister of Finance, Ralph Fonseca who was scheduled to be called on Tuesday. Now it is uncertain who will be next to take the microphone. Reporting from the Belize Institute of Management, I am Janelle Chanona.”
