Social Security funds have been paying Glenn Godfrey's bills: it went from a multi million dollar secret known by only a few players at the highest levels of government finance to a revelation that has raised serious questions about the misuse of public funds.
As we first reported last week, Glenn Godfrey through his affiliated companies defaulted on loan payments in November and since then Social Security money has been used to cover the debt. At 13% interest in the eight months Godfrey's debt to the Social Security Board stood at $6.2 million at the end of June. Social Security's Chairman Yasin Shoman told us he expects Godfrey to repay but today we asked the Prime Minister about this arrangement and the broader question about the misuse of public funds.
Jules Vasquez,
For these seven months these public funds, Social Security funds, have been used for the coverage of a private debt. What can you say about this?
Hon. Said Musa, Prime Minister
“I think you’ve said it. What can I say? The fact is that Social Security does investments to various companies, various industries, various ventures. In this case some investments were made, some loans were made to several companies owned by Mr. Godfrey at the time and those loans were securitized and of course when they become due if they are not paid by the principal then Social Security as the securitizing agency has to make the payment. But we’re...from all the information that’s available to me I’m satisfied that we have sufficient coverage, sufficient collateral, and the government or social security will not lose any money. But the matter will have to be resolved shortly.“
It's not clear what collateral government has to cover Godfrey's debt because when we tracked down one of the loans that Social Security is covering, it was $7.7 million to Intelco for, "the development of upscale properties in the Cahal Pech area" where now stands an Intelco tower which will be sold when that company is sold. Another loan is for $9.8 million to Western Caribbean properties to, "provide high quality rental units to residents of San Pedro in proximity to Saint Matthews' University." Again, when we checked we found only an empty space where that property is supposed to be.