Last night in his address on the report of the Senate Special select Committee the Prime Minister said, "Government will now actively seek legal advice on proceeding with civil action to recover all loan payments outstanding, particularly as it relates to the Glenn Godfrey group of companies." Sure enough, the senate report details copious millions, secretly guaranteed with public funds which were directed to Godfrey companies, which those companies have since defaulted on, leaving government and Social Security to clean up the mess with your tax dollars and fund contributions.
But so all encompassing was the comfort Godfrey's companies enjoyed with the musa administration, that it seems, it would be hard to get everything back. Tonight we'll take you to the report of special auditor Mark Hulse which has been obtained by 7NEWS to show you how even on a $17.5 million transaction guaranteed with public funds, a Godfrey affiliated company, St. James refused to pay even a bare minimum of taxes into government.
On page, 138 the auditor's report notes that even though his companies had gotten $17.5 million through questionable representations, Godfrey's IBC MH Financial didn't even want to pay stamp duty, much less the official exchange rate which is.007 of a cent on the dollar to have its money transferred, against regulations, in U.S. dollars to a U.S account. On page 116 auditor Hulse's report says: "Central Bank of Belize initially transferred the first three transfers...at bze$2.0063 per US$1 rate of exchange and $0.025 stamp duty, a total $2.0313 per dollar. These transactions were reversed on 29th May 2002 'to correct the rate of exchange and to reverse stamp duty charged to MH Financial Investment Ltd. The exchange rate was changed to a flat BZ$2 per US$1....the loss on exchange and stamp duty from these transactions was $263,516.78."
And then, the Senate report states: "St. James refused to pay any portion of the charges associated with this transaction and those charges were therefore absorbed by the DFC."
In Mark Hulse's auditor's report, it explains that Godfrey, then DFC Chairman simply switched hats from St. James to DFC and got DFC to cover those costs. Auditor Hulse goes on to note: "In order to settle the matter, DFC recalculated the distribution of proceeds and absorbed the transaction costs for the St. James loans securitized." Elsewhere in his report, Special Auditor Hulse laments: "We should also note that the principal of these companies, Mr. Glenn D. Godfrey was also serving as Chairman of the DFC at the time these transactions were going through. These are not considered arm's length transactions as accepted in the general course of business."
But that's how it went through a long list of transactions and in the days ahead, we'll continue to look deeper into both the Senate and Special Auditor's reports to show you how recklessly investments were made.
