The DFC public hearings continued today with former Deputy Chair David Courtenay and former Financial Secretary Hugh McSweaney taking the stand. Courtenay's appearance was much anticipated. Yesterday, the forensic auditor said that as the Deputy Chair he had exerted an undue influence on the DFC to meet his own business designs. Today the Commissioner put that to Courtenay, and here's what he had to say in response.
Jules Vasquez Reporting,
Deputy Chairman David Courtenay appeared along with his uncle and lawyer senior counsel Derek Courtenay. The former Deputy Chairman discussed a loan DFC made to his company CAD Construction to set up a housing project called San Lorenzo in Orange Walk.
David Courtenay, Former DFC Deputy Chair
"CAD Construction developed a project in the town of Orange Walk, it was commonly referred to as the San Lorenzo House Site. Construction financing was from the DFC."
Merlene Bailey-Martinez, Co-Chair - Commission of Inquiry
"Okay so DFC loaned the money to you as a DFC director and as a CAD Construction Company Director, right?"
David Courtenay,
"No they did not lend me the money as a director, no."
Merlene Bailey-Martinez,
"While you were a director."
David Courtenay,
"Yes ma'am. As a Belizean I was entitled to participate in that program. And as you know there is specific provision within the DFC Act which as it says makes provisions for directors to transact business with the corporation."
Merlene Bailey-Martinez,
"Was that investment made on its economic merits? As a director of DFC, was that investment by the DFC in the houses that you built and which have been discounted by ten thousand dollars on the original sale price, each of them have been discounted by ten thousand dollars and they have still not been able to move more than four of them in as many years."
David Courtenay,
"Ms. Bailey you are asking me to comment on lots of things that I have no knowledge of."
But what Courtenay did know of was his involvement as project manager for the Mahogany Heights Project.
David Courtenay,
"When I was off the Board of Directors CAD Construction entered into a contract with the DFC to provide project management for the project in La Democracia. Those conditions were I was paid three percent for providing those services."
Merlene Bailey-Martinez,
"You were paid you said three percent of any contract that you supervised?"
David Courtenay,
"Yes."
Merlene Bailey-Martinez,
"Were you also paid three percent for supervising your own contract Mr. Courtenay?"
David Courtenay,
"If I was paid three percent for supervising my own company, I don't understand what you mean."
Merlene Bailey-Martinez,
"CAD Construction also had a contract. Did you charge three percent on the contract's sum that was paid to CAD Construction for performing construction work?"
David Courtenay,
"I would have to see that and refresh my memory. I can't answer you offhand."
Merlene Bailey-Martinez,
"You don't recall?"
David Courtenay,
"No Ma'am."
Merlene Bailey-Martinez,
"You don't recall having a discussion where you insisted on paying it, because we have testimony to that effect."
David Courtenay,
"No, I don't have any such recollection."
Merlene Bailey-Martinez,
"I am asking you did CAD Construction Project Manager oversee the works of CAD Construction for construction services...and if it did, did it charge the three percent commission to oversee the works? That's what I am asking."
David Courtenay,
"I do not recall Miss Bailey. I can't even recall what exactly those contracts say, I would like to see them and I will then be able to explain to you exactly what the situation was."
Merlene Bailey-Martinez,
"So we'll leave it Mr. Courtenay."
And while Courtenay could not recall the particulars of a contract awarded to his own company, he said he never even knew about the $30 million disbursed in one day to the Novelo group of companies. He said that was not how it was to have gone, not by the rules of the Board Management Credit Group which he chaired.
David Courtenay,
"My recollection was in fact that it had been otherwise. I was surprised when I heard that. I was not aware of that."
Merlene Bailey-Martinez,
"When did you hear?"
David Courtenay,
"Some day in this hearing."
Merlene Bailey-Martinez,
"That the entire amount had been disbursed?"
David Courtenay,
"Yes."
Merlene Bailey-Martinez,
"So, if you did not know that the funds were disbursed, then you would have, imagined, try to carry out your responsibility as decided by the board. What exactly did you do at all, if anything at all, regarding this project, Mr. Courtenay? Please educate me. What did the BMCC do at all?"
David Courtenay,
"The BMCC did nothing."
And while Courtenay did not recall, Bailey-Martinez read from the minutes of a board meeting where he sat in the Chairman's seat and that same $30 million and the one day disbursement was brought up.
Merlene Bailey-Martinez,
"Do you recall that being tabled Mr. Courtenay?"
David Courtenay,
"These reports would show up along with our minutes in our package for a meeting. Obviously it appears as if though I did not read that particular section or that particular report that you are talking about."
Merlene Bailey-Martinez,
"What is obvious, who is it obvious to?"
David Courtenay,
"If I don't have recollection of it, Miss Bailey I did not have any knowledge, I was surprised when I heard it at this hearing. I did not have any knowledge or recollection of..."
Later on we'll have excerpts of the afternoon session where former Financial Secretary Hugh McSweaney testified.
