The DFC Commission of Inquiry's public hearings were suspended for two months, from August 24th to October 24th, but it resumed today and the public found the commissioners in full, confident stride. Manager of Credit Administration Roberto Bautista testified. He detailed one of the most stunning transactions in Belize's banking history: how $30 million was disbursed to the Novelo's group in one day.
Roberto Bautista, Manager of Credit Admin - DFC
"The disbursement was authorized by me but I was instructed to authorize the loan to pay."
David Price, Commission Chairman
"Where did that instruction come from?"
Roberto Bautista,
"That instruction came from my Chairman."
Merlene Bailey-Martinez,
"When your Chairman approved that, did you question it?"
Roberto Bautista,
"I mentioned it to him because what actually happened is that the day
when these documents were signed, and we were given the okay to start to implement the projects, I told them at the meeting that we were going to disburse to Eugene and the balance, I would have met with Novelo's at a subsequent date and we even arranged a date, I think about a week after, that we were going to meet to discuss the implementation plan, which is the..."
Merlene Bailey-Martinez,
"...the disbursement schedule."
Roberto Bautista,
"Yes but then I get a phone call from my Chairman who (asked) told me that why I am not disbursing this thing. He said I have to disburse it because we can't have the money just idling there."
Merlene Bailey-Martinez,
"What authority did the Chairman of the Board have to act outside of the Board?"
Roberto Bautista,
"I don't know."
Merlene Bailey-Martinez,
"Did you question that, that instruction, in terms of the authority of the Chairman?"
Roberto Bautista,
"I respected his decision and based on his instructions in writing, I went ahead."
Merlene Bailey-Martinez,
"Between you and the Chairman, basically, you authorized this disbursement outside of the lending guidelines and outside of the law, basically."
Roberto Bautista,
"Well I got the authority in writing for me to do so."
Merlene Bailey-Martinez,
"So it could have just been him wanting to disburse $14 million?"
Roberto Bautista,
"It could be probably, yeah."
David Price,
"Mr. Bautista I want to submit to you that this represented a case of gross dereliction of duty, on the part of both the Chairman of the Board and yourself, and that that will form part of the report that we will be making."
Roberto Bautista,
"How much is still outstanding? $32 million."
Herbert Lord, Commissioner
"That's with interest?"
Roberto Bautista,
"That's the total value."
Merlene Bailey-Martinez,
"And that is after government paid $8 million for the terminals right?"
Roberto Bautista,
"That is after we have sold all the real estate assets."
Bautista's testimony continues on Thursday. Early in the day, Chairman David Price made it clear that while there have been no public hearings for 61 days, the commission has not been in recess. There have been in camera meetings as well as the compilation of over 500 pages of testimony.
