It was to have been a mighty day of reckoning - Ralph Fonseca - the former Finance Minister who was deposed by 7 of his own Cabinet members appearing before the DFC Commission of Inquiry to finally, publicly answer for the mistakes that led to the demise of DFC. And while that was the billing, that wasn't quite how it worked out. Channel 7 aired six solid hours of the hearings live and here are the highlights.
Jules Vasquez Reporting,
Former Finance Minister Ralph Fonseca was comfortable when he appeared before the Commission. Confident, but not contentious, and in fact all day that only thing that would ruffle him was the passing of notes between co-chair Merlene Bailey-Martinez and her counsel Lois Young Barrow.
Hon. Ralph Fonseca, Former Minister of Finance
"Madam Chairperson I really am being distracted by these notes being passed back and forth. Can we not get our act together here? I am supposed to be focusing on what you are saying and watching this young lady pass you papers every minute. This is most distracting. I thought we agreed this morning that we would have some other modus operandi."
Merlene Bailey-Martinez,
"We did not agree but if you are distracted by the notes then my counsel can come and sit at the table."
Hon. Ralph Fonseca,
"I said please go ahead if you need her. Have her sit in your lap."
Merlene Bailey-Martinez,
"That is very disrespectful."
Hon. Ralph Fonseca,
"But as it relates to, there we go again with the paper. As it relates, as it relates…can you state your question again? I was terribly distracted just now."
Merlene Bailey-Martinez,
"I hope we're winding down now. I am sure you hope so too."
Hon. Ralph Fonseca,
"I just wish the notes would stop passing."
Merlene Bailey-Martinez,
"You have gone record to say that you have absolute confidence in your counsel and I think I can pleasantly go on the record to say that I do too.
I have absolute confidence in my counsel."
Hon. Ralph Fonseca,
"And I congratulate you Madam Chairperson, Commissioner sorry."
Merlene Bailey-Martinez,
"It has nothing to do with my capabilities, it is to do with hers."
Hon. Ralph Fonseca,
"That is a brave decision."
And while counsel Lois Young had to laugh, Fonseca was on his game and hit all his points. Virtually no 'I gotcha' moments - even when he was accused.
Merlene Bailey-Martinez,
"Our research has shown that you are one of the original owners of the company that sold the Los Lagos land. But I must say that the company had changed ownership rights throughout. But I need to ask you so that you can go on record to clarify this. Did you in anyway benefit financially from the purchase of lands in Los Lagos?"
Hon. Ralph Fonseca,
"No, Madam Commissioner."
Merlene Bailey-Martinez,
"Thank you."
Hon. Ralph Fonseca,
"May I just add Madam Commissioner that I have owned hundreds of companies, that is the nature of my business when I'm not in government. They are shell companies and they are sold off and they do many things afterwards. But I have answered your question."
Merlene Bailey-Martinez,
"I just needed to ask it because the company is still within your family so I just needed to make sure that I clarified that with you."
Hon. Ralph Fonseca,
"The company is within my family?"
Merlene Bailey-Martinez,
"Yes, the company Resource Investment Limited is still owned by members of your family."
Hon. Ralph Fonseca,
"Owned by members?"
Merlene Bailey-Martinez,
"Up until the time when we are looking at the DFC."
Hon. Ralph Fonseca,
"I sense that you are trying to impute improper motives here without any reason whatsoever. Now I have been sitting here and listening to judgmental questions but I will not tolerate any kind of thing like that being directed to my family. I have no idea which one of my family you are referring to. My family is very active in the productive sector in Belize. What does that have to do with this Commission? I would like that to be struck from the record and I would like a confirmation Madam Commissioner that that would be struck from the record."
Merlene Bailey-Martinez,
"What would you like struck?"
Hon. Ralph Fonseca,
"The last statement that you made and, 'my family still owns that company,' which I am pretty sure is not so. I wouldn't doubt that maybe one of my family has some shares in that company but I know that they do not own it. But apart from that, it has nothing to do with nothing here and I am asking you or begging you to strike that from the record."
But Fonseca was surprised when there was no record of the many approvals he gave for loans to members of the DFC Board, particularly Glenn Godfrey and David Courtenay.
Herbert Lord,
"We have not found in writing anywhere where anyone sought the Minister's
approval and it was granted. The reason why I've used the word 'in writing' is because it says under section nine that they should make a written disclosure to the board of the nature of his interest affected as soon as possible. So I am using you have to make a written disclosure, that's the disclosure which may be forwarded with a favorable recommendation, from the board to the Minister for his approval or not approval. Can you comment on that for me? If you received any during your tenure, I don't need specifics; if you approved some or if you were aware of that?"
Hon. Ralph Fonseca,
"Well I am almost shocked and horrified to hear Mr. Commissioner that you did not find these things after the people of Belize have spent some one million dollars on this Commission if not more. An this is why I am a bit shocked, that this information is not there after so much of public money has been spent because in each case these approvals had to be approved by the board first otherwise it could not even come to me and I was very very cognizant of that. So there should be a record there. So someone is not doing their work."
Merlene Bailey-Martinez,
"So we should be able to request from the Ministry of Finance, because we have not been able to receive those from the DFC and you passed a comment that after whatever how much money was spent on the Commission that we still have not been able to receive those documents but I am, if the Commission requests these documents and we are not given it then I think it is a bit bothersome for the implication to be that it is the Commission not doing its work in receiving documents that we have requested."
Hon. Ralph Fonseca,
"I understand Madam Commissioner but if I could just clarify, because you are using my words, but you're not using them I think exactly as I spoke them, when I made reference to being shocked, I qualified the statement by saying that some where in the minutes of DFC it must say that I approved it."
Merlene Bailey-Martinez,
"It doesn't sir."
Hon. Ralph Fonseca,
"I didn't say anything about the paper trail coming from myself. I was referring to the fact that at the root of all this thing, they must have been an approval at the DFC Board, board level."
Merlene Bailey-Martinez,
"That's a problem, that's why I wanted you to take a look at the minutes yourself."
Hon. Ralph Fonseca,
"Well if there is a problem."
Merlene Bailey-Martinez,
"…to see…"
Hon. Ralph Fonseca,
"Well if it doesn't say that then there is a problem."
Herbert Lord,
"The reason why I asked the question was we have heard, been informed in testimony, let me put it that way, by some persons who have given testimony that as far as they are aware, when they had applied for any loans etc., that a phone call was made and it was approved but it was not necessarily in writing. So that is why I asked for both sides."
Hon. Ralph Fonseca,
"Phone call made to whom?"
Herbert Lord,
"That is the question."
Hon. Ralph Fonseca,
"Certainly not to me. I don't approve things by phone."
Merlene Bailey-Martinez,
"It was no less than the Deputy Chairman who said that on occasions he would pick up the phone and call you to approve transactions for the Chairman and that you would give that approval on the phone and that there was no necessity to tender a written request to you."
Hon. Ralph Fonseca,
"The Deputy Chairman erred. Everything that I have heard or read or gotten from my friend Goebbles on TV 7, were things that I know about; staff loans or loans to Mr. Courtenay's company and that sort of thing. So I haven't heard anything that shocks me."
Merlene Bailey-Martinez,
"I am wondering if you are categorically stating that everything at the DFC was done as it should have been done with your knowledge and approval. That is what I was I was getting at, I am asking about that."
Hon. Ralph Fonseca,
"You have 100% ownership of those words Madam Chairperson, I said no such thing."
Merlene Bailey-Martinez,
"Were you provided with the written disclosure as to Mr. Godfrey's involvement in this company, in terms of his law firm?"
Hon. Ralph Fonseca,
"Novelo's?"
Merlene Bailey-Martinez,
"Yes sir."
Hon. Ralph Fonseca,
"No, what does Godfrey have to do with Novelo's? I am not…what is the linkage?"
Merlene Bailey-Martinez,
"The law firm Sir as receiving fees from this transaction."
Hon. Ralph Fonseca,
"Oh, sorry, all the other questions had to do with people having equity. No, I cannot recall that. No. I am almost sure that I was not. I thought, well are you asking me whether I was given a disclosure that said that DFC paid Godfrey's law firm for the Novelo's transaction? Is that the question?"
Merlene Bailey-Martinez,
"I am saying at this point there wasn't a payment but certainly Mr. Godfrey was giving legal advice to the Novelo's at this point in time. The payments came a little bit later but at this point in time, when he was the Chair, there was a decision by the Board and he stood to benefit financially from that decision through his law firm. So I am asking you, was there a written disclosure of that transaction?"
Hon. Ralph Fonseca,
"I don't think so and I am not even aware of the transaction. I've heard about Godfrey's law firm being involved with the Novelo's transactions but I always thought that the DFC had another attorney and not the Godfrey law firm."
Later on, we'll show you more form the hearings as Ralph Fonseca tells the commission who really killed the DFC.
