We’ve all heard about Dr. Victor Lizarraga – the principal of Universal Health Services. He’s been pilloried in the press for being the man behind the insolvent private hospital built with publicly guaranteed funds. But while that is Lizarraga the medical professional, not very much has been said about Lizarraga, the homebuilder. That’s right, back in the days of growth economics and the so called “housing industry boom” when DFC money was in abundant supply, Lizarraga was right in it, building homes in Corozal, Santa Rita Heights, for his company New Millenium Enterprises Limited.
According to the forensic audit by Mark Hulse, in March, 2000, Lizarraga’s company was paid $1 million for 20 houses. And then in May of that same year was then loaned $3 million to buy back the houses and build some more. One payment on the loan was made in September of 2000 and that was it, the loan remained delinquent after that.
But because he borrowed the money from DFC and secured the loan with the very same lots those homes were built on, the agreement was that the lots would not released until DFC had been paid for the houses. Of course – true to the practice that prevailed with preferred borrowers in that era, the property as security was only valued at $1.2 million while the delinquent loan still stood at $3 million in 2004.
Bad business, but in fact it was business as usual at the fast and loose DFC. And it went from bad to worse, even when the Prime Minister agreed to discount the principal figure, along with Universal’s indebtedness to the DFC, the principal still wasn’t recovered with the loss going invariably to taxpayers. So, out a few million, the DFC had to try and recover what it could by auctioning the lots. And what happened to the houses on those lots? Well that’s a sad story that came to our attention last week. With the assistance of our colleagues at Northern Cable Network – we have the story of one woman who woke up to find that the lot her house sits on was sold – even though the house had been paid for.
Esmeralda Milagro Jimenez,
“Just imagine this is your house where you have lived and so you come and notice that your house is sold already so where are we going? Where am I going to move my stuff that’s hard for me.”
Four years ago forty three year old Esmeralda Milagro Jimenez believed that
her dream of owning a home came through after she struck a deal with the property’s owner Seferina Rubios who asked her to move into the concrete bungalow property because she had to go away for health reasons. Rubios had purchased the property for thirty one thousand dollars.
The house situated at Santa Rita Heights in Corozal is just one of the thirty houses constructed through the company New Millennium Enterprises Limited. According to Jimenez the agreement was signed before a justice of the peace and she moved into the residence. Jimenez says she does not have the title to the property because New Millennium principal Dr. Victor Lizarraga told her that once she paid the balance owed, a total of four thousand dollars, then she would receive the document.
Esmeralda Milagro Jimenez,
“Since I call Lizarraga he is always busy, he is going out of the country but he told me as soon as possible he is going to come and speak with me and see what we are going to do about the arrangement. I am waiting for this title since I have to bring four thousand dollars but I am willing and I have a letter where I am explaining to Lizarraga that I sent one to him that when he brings the title I am going to give the four thousand dollars.”
With that Jimenez, who is the single mother of two children settled into her new home. She also did major renovations by expanding on the building. But last week Friday it came tumbling down and all of Jimenez’s hopes of ever owning the property were dashed when she says a Canadian woman showed up at her residence and dropped a bombshell.
Esmeralda Milagro Jimenez,
“That she told me that my house she bought and she told me she bought it from the DFC. So I tell she that something is wrong because I have the paper where I have paid thirty one thousand dollars. My balance was four thousand dollars. Since Lizarraga have to come and give me the title and I am going to give him back the four thousand dollars, the balance of it “
Jimenez says she wasted no time in contacting Dr. Victor Lizarraga but that
he was of no help only telling her that maybe it was only politics and not to worry. But it didn’t sound like politics, Jimenez says the woman told her that she had purchased five of the properties and that her house is on the list.
Esmeralda Milagro Jimenez,
“And I say, but this, I cannot believe it. I cannot sleep thinking about that my house is on the list. He says, don’t worry because if I chop the yard, if I take care the place so how come the land is going to be sold. If anything I am going to call you back but don’t worry. I said, yes but that is something to worry because that is my house, it is where I live and I have lived four years in this house.”
Jimenez says she then decided to contact the Development Finance Corporation to find out what had happened and was told that Dr. Victor Lizarraga had nothing to do with it anymore. A DFC audit showed that Lizarraga defaulted on his $3 million loan – and we do know that security for the loan included lots and houses.
Esmeralda Milagro Jimenez,
“So I went to DFC and I told them about this. They took my papers, they read everything, the receipts, everything and then the lady in charge there, she told me that I have to go to Orange Walk because they have it right there in Corozal before, so I went to Orange Walk explain to them over and over again the same story and they told me hmm, I have to see Lizarraga again and I told them okay why don’t you tell me how much you are selling the house so I could buy my same house again.”
Jimenez says she cannot afford to lose her property. She’s now seeking legal assistance to see how she can remain in the home because she says her attorney has since confirmed that indeed her house has been sold.
Esmeralda Milagro Jimenez,
“I called my lawyer yesterday and he told me that he has spoken to Lizarraga and he says again the same words don’t worry he is going to do something but I do not know what he is going to do. Just imagine, just imagine, it is very hard for us because I ask who is going to pay me for what I have done and it is not what you paid, it is what you are getting. It is hard to build this and you love your house okay so that is hard if they come and tell you okay I am going to give you back your $31,000 but imagine for 4 years. I need something to be done here, somebody who will listen to this and try to help me because we need help.”
Today Jimenez informed 7NEWS that Dr. Victor Lizarraga on Monday evening told her that he was sorry for what had happened and that he could offer her house number twenty one that has three bedrooms but that it would come at an additional cost.
Esmeralda Milagro Jimenez,
“So I want somebody to tell us what are we to do because I do not want to lose my house. Well that is the problem. I do not really know that is why I want somebody to help because I do not know who I should claim about this.”
Today Jimenez appealed to Dr. Victor Lizarraga to help not only her family but all the other residents she says now stand to lose their home.
Esmeralda Milagro Jimenez,
“Just to take care what he has done and to please have a heart not to break these people and have them living on the street please try and do something about this because he has a house, shade and money around but we have people who do not have it and nowhere to go. So we need our house. So we ask him to do something for us and do not throw us away like this.”
Jacqueline Godwin for 7NEWS.
When we contacted Dr. Victor Lizarraga he said he has no knowledge of what we were talking about. When we further inquired about the offer Jimenez told us he presented to her only yesterday evening, he hung up the phone. We tried again, but again, he repeated that he does not know what we are talking about. But residents of Santa Rita do know and we are reliably informed that some whose lots were sold, have been dismantling their homes from the roof down to cart them away as best they can.
Of the Santa Rita Heights Project, in his forensic audit, CPA Mark Hulse concludes thusly: “$3 million was loaned on inadequate security, and the loan was extended despite its delinquency and despite evidence to suggest that cash sums generated from property sales which should have been paid to DFC were being diverted elsewhere.”
