Earlier the Glenn Godfrey sideshow delayed the continuation of Troy Gabb's testimony. But after a one hour delay, the former CEO's hearing got underway. Co-Chair Merlene bailey Martinez put it very squarely to Gabb that he had bypassed the credit committee and gone straight to the chairman to get a loan for himself from the DFC.
Merlene Bailey-Martinez,
"On the 7th of May 2000, you bought a property from one Anna Vellos for $24,000, that is on the land transfer document. You subsequently on the 31st of October 2002, you entered into an agreement for the sale of this property to Mr. Roy Young for $100,000. That is a difference of $76,000 between May and October. This purchase from you by Mr. Young was facilitated with a loan from the DFC at which this property would have been used as collateral and there a couple of things with that. 1)who appraised this property that you sold for a $100,000? Where was the appraisal submitted to the DFC?"
Troy Gabb,
"That should be in the file, that should be in the file."
Merlene Bailey-Martinez,
"There is no appraisal on the file so I am asking you."
Troy Gabb,
"That is a straightforward transaction fully approved by the credit committee of the DFC."
Merlene Bailey-Martinez,
"It was not submitted to the credit committee."
Troy Gabb,
"So what is the question?"
Merlene Bailey-Martinez,
"Are you for the record stating that this application was submitted to the board management credit committee?"
Troy Gabb,
"From my recollection yes it was."
Merlene Bailey-Martinez,
"I need you to state categorically, was it or was it not."
Troy Gabb,
"I have said from my recollection that it was submitted to the board management credit committee."
Merlene Bailey-Martinez,
"Does Mr. Godfrey sit on the board management credit committee or did he sit on the board management credit committee?"
Troy Gabb,
"I don't remember who made up at that time the board management credit committee. I know Mr. Bautista certainly was a member."
Merlene Bailey-Martinez,
"Mr. Godfrey was not a member of the board management credit committee."
Troy Gabb,
"He was the chairman of the board."
Merlene Bailey-Martinez,
"He was the chairman of the board. We are saying the submission and approval by the board management credit committee. Mr. Godfrey was not a member of that committee. In what capacity then did he approve the loan that you are stating was submitted to the board management credit committee?"
Troy Gabb,
"Well as far as I am concerned, this bears his approval and so that question can be raised with Mr. Godfrey as to what capacity he had to sign."
