At the top of the newscast we told you about the quite remarkable testimony from Finance Manager Jane Longsworth in today's DFC's hearings. Well, slightly less dramatic but equally formidable testimony was given by Ann Wiltshire, legal officer for the DFC. She first appeared two weeks ago, and returned today with one of the most important documents of the securitization era: it is a document in which Glenn Godfrey, as DFC chair, writes that he is relieving Social Security of its guarantee for the securitization of $17.5 million in St. James loans.
That would prove critical because that "discharge of charge", as it is called, was never activated, and Social Security did have to act as guarantor, leading, in July of 2004 to that famous question asked first here on 7NEWS: "Is Social Security using your money to pay Glen Godfrey's bills?" It was, and by the fistful, a revelation which led to the G7 of August and everything thereafter. So it's an important letter but is it real? Godfrey said he can't recall writing it, but today Wiltshire differed, greatly.
Jules Vasquez Reporting,
This is it: the discharge of charge written in 2002 by then DFC Chairman and St. James principal Glen Godfrey to Narda Garcia at the Social Security Board. It promises to release Social Security from being responsible for two St James loans valued at $17 million. Legal officer Ann Wiltshire who received the letter read from it directly.
Ann Wiltshire,
"'The DFC of Belize hereby undertakes to fully release and discharge SSB from all liabilities arising directly or indirectly and including but not limited to payment obligation arising from the purchase of loans by the SSB from St. James National Building Society and in particular the loans in relation to Western Caribbean Properties and International Telecommunications Limited. Yours truly, Development Finance Corporation, Mr. Glen Godfrey, Chairman DFC.'"
Merlene Bailey-Martinez,
"And these are companies that are part of the group owned by Mr. Glenn Godfrey?"
Ann Wiltshire,
"Yes they are."
Merlene Bailey-Martinez,
"So in effect he was given a DFC or attempting to give a DFC indemnification to BSSB to cover the loans in his company?"
Ann Wiltshire,
"That is exactly what was purported to be done."
But when he testified before the Senate Special Committee on June 9, 2005, Godfrey said that he had no recollection of the letter.
[June 9th, 2005]
Glenn Godfrey,
"I've heard of that
letter...this letter has been shown to me. I will be honest with you, I have no recollection of it."
Senator Godwin Hulse,
"Is it your signature?"
Glenn Godfrey,
"It appears to be my signature but you don't have an original?...there are many things that can be done to photocopies. I am not charging anybody but I am saying I don't recall this letter and I've asked them to check with the DFC and there is no record of this at DFC. I really can't recall that letter."
[End of June 9th, 2005]
Can't recall? No record of it? Well the legal officer who processed the letter says she does recall it, it was a big deal and she got this one from DFC's records. In fact, she originally got it from her CEO.
David Price,
"Is that in fact the signature of Mr. Glenn Godfrey?"
Ann Wiltshire,
"Yes sir it is."
David Price,
"That is the copy of the letter that you received from your CEO?"
Ann Wiltshire,
"Yes sir it is."
David Price,
"So as far as you are aware, that is a genuine copy of that letter."
Ann Wiltshire,
"Yes sir."
And while Wiltshire vouched for the authenticity of the letter, in her legal opinion, though it is genuine, it's not worth the paper it's written on because Godfrey's discharge of charge did not have Board approval.
Herbert Lord, Commissioner
"Although it was signed by the Chairman purporting to act on behalf of the DFC, it, in legal parlance, would not have been properly authenticated so the board would bear no responsibility."
Ann Wiltshire,
"Yes sir that is right."
Merlene Bailey-Martinez,
"Mrs. Wiltshire is there anything at all in the DFC Act that gives the Chairman the authority to act in this way, unilaterally?"
Ann Wiltshire,
"No Mrs. Martinez. There is nothing in the Act. The Act provides the manner in which a document which bears the seal of the corporation should be executed."
Tomorrow we'll have more from the hearings as Jane Longsworth today accused the DFC of knowingly perpetrating securities fraud with those same St. James loans. The hearing continues next week when the commission is expected to call general manager Roberto Bautista.
