Whenever we hear a PUP insider speak about SSB investments, we have to refer to that most INFAMOUS period when last the People's United Party was in government. That same period that prompted a Special Senate Select Committee Investigation. The report from that investigation is so long that it took the Amandala some Three months to do it's report on a Bi-weekly basis. We found 19 of those segments they gave us in weekly installments so as not to take up the entire newspaper. Just Google REPORT OF THE SENATE SELECT COMMITTEE INVESTIGATING THE SOCIAL SECURITY BOARD and read the entire thing. For the purpose of this essay we will only touch on one loan, and that is a loan to INTELCO. The following is what the report from the Senate Special Select Committee stated and we quote direct from the Amandala Edition # 2286 dated 18, November 2008.
The Senate Committee reviewed the original mortgage documents, the Assignment of Mortgage document, the Mortgage Purchase Agreement and the Mortgage Loan File obtained from the DFC in connection with the ITL Mortgage and noted the following information contained therein. The Senate Committee also notes that the loan amounts are stated in the original mortgage documents as having been disbursed in US dollars. However, the assignment to the SSB was made in Belize dollars.
The Senate Committee also observed that the dates on documents on the loan file with pertinent information do not match and there seems to be an inconsistency between the documents in respect to the date of disbursement of funds.
The Mortgage Loan file contained a Deed of Conveyance signed on May 11, 2001 between Jaime Yoel Zetina and International Telecommunications Limited covering two lots in San Ignacio Town – Numbers 76 and 77, together with all buildings and erections standing and being thereon and sold to ITL for the sum of $50,000.00. This deed was registered on May 14, 2001.
The said properties were mortgaged to St. James National Building Society to secure a loan in the amount of US$ 3,850,000.00. This Mortgage was signed on May 22, 2001 and registered on May 29, 2001.
A report and valuation on lots Nos 76 and 77 showing May 14, 2001 as the date of inspection and signed by Mr. Selwyn Hernandez on May 30, 2001, reads as follows: “In accordance with your request, I am to inform you that I have inspected the property referred to in the report for the purpose of ascertaining its market value as of May, 2001. As a result of said inspection and other investigation into the market and having regards to other factors affecting value , the estimated ‘Market Value of the property as of May 2001 is $1.5 Million Dollars U.S. I hereby certify that I have personally inspected the property in question and have no interest, contingent or otherwise, in said property.”
There are two signed credit appraisal reports on the file, both dated May 23, 2001, one showing the rate of interest payable on the outstanding principal balance as 12% and the other showing the rate as 13%.
There is a Project Appraisal Report and an Executive Summary, both dated June 11, 2001, which states under “Financing Required”, a loan of $7,7000.00 (Belize Dollars) is being applied for from etc…” There is a Project Summary report dated August 9, 2001 which has a similar statement to the one above.