Earlier this week we showed that last year government paid US$2.4 million last year for Intelco phone services when there are no services being provided. It's a burden taxpayers bear for Glenn Godfrey and government's costly telecom experiment. But that's not the end of the bill that taxpayers must pay to cover Godfrey's bad debts.
7NEWS has obtained a copy of an internal central banks document, the statement of account for 25th November 2005. It shows government paying $800,000 to Social Security on Godfrey's behalf. The entry states that on the 25th November, government transferred $801,565.40 to Social Security's account for "government's guarantee of the North American mortgage securitization program and shortfall in payments from Godfrey's St. James Building Society for Western Caribbean Properties and Intelco."
That's the same mortgage securitization transaction that was at the center of the Senate probe into Social Security where board members testified that Social Security was used as a front to cover for a possible conflict of interest between Godfrey as then-DFC Chairman and Godfrey's phone company as recipient of securitization proceeds.
It's of interest that on the same day that it paid $800,000 to cover that Godfrey default, the Central Bank also had to find $676,000 to pay for those non-existent Intelco phone services. That's just shy of one and a half million dollars paid out from Central Bank in one day in November to cover Glenn Godfrey's costly commercial misadventures.
And while government continues to cover Social Security's exposure to Godfrey on the North American securitization, last we checked, Government had still not re-paid Social Security $1.8 million it was forced to pay out to cover for Godfrey in December of 2004.
