Two weeks ago, we told you about a 622 thousand dollar loan that the Holy Redeemer Credit Union approved for its president Wendy Castillo in mid 2024.
Our story focussed on a report from the HRCU's own internal auditor who raised some flags about incomplete documentation and other deviations from policy and procedure in the processing of the loan.
We asked President Castillo for comment but at the time she only offered a blanket denial that there was anything amiss with the loan.
But, yesterday, under pressure we are told, the president did issue a 6 minute statement in defence of the loan and her reputation. HRCU did not send it to us but we saw it on another station and felt it important to use as her response to the credible allegations of irregularities. Jules Vasquez put together a story on what she said and what the auditor said:
Wendy Castillo, HRCU President.
Recently there have been misleading statements promoted by one media outlet suggesting that I received a business loan from HRCU that did not follow our established policy. I want to openly and truthfully address this matter. Let me be absolutely clear, those statements are wholly misleading, purposely omitting critical facts.
But we got our information strictly from this internal auditor's report - which was dated September 2024, three months after the full loan was disbursed on June 16, 2024. It clearly says that - at that date - payout was made without the conditions being met.
Wendy Castillo, HRCU President.
Approval was given by the credit committee. The loan was then submitted to Internal Audit for a full review and compliance checks. The internal auditor in the preliminary review highlighted the need for additional documentation to further secure the loan, which was provided.
But in fact the internal auditor said that it was not additional documentation - but the basic documents which had not been provided. The auditor says, for example, "Notably, Financials were an explicit CC condition to this loan but was not met."
But, the president says - without offering any certified proof - all is now in order:
Wendy Castillo, HRCU President.
All documentation is on file; my loan payments I meet monthly. I want to make it clear that the loan was approved in accordance with all the required procedures that HRCU has always adhered to strictly. I assure you that every transaction follows the same strict process for all members regardless of the position held at HRCU
But, the auditor doesn't only suggest - she states otherwise - for example, that documents required to be in place prior to disbursement were not, and that, in another example, legal fees were not paid before full disbursement and were then simply added on to the total disbursed, effectively rewriting the loan.
But, President Castillo says she got no special privilege:
Wendy Castillo, HRCU President.
For the record, no special privilege was ever granted to me. Absolutely nothing wrong has happened. There have been no irregularities and all required procedures have been met. Let me assure you that your credit union is strong, stable and well managed.
The Central Bank of Belize which regulates the Credit Union has not issued any statement, though we have asked for one.
