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#229134 - 02/03/07 08:35 AM Forensic audit - DFC
Marty Online   happy
Mark Hulse: Forensic Auditor

"My principle findings are set out in sections four to six of this report
and are summarized below. Assets, Delinquent Loans, on 31 December 1999
thirteen percent of loans and valued terms were non performing by 31
December 2004 this had increase to thirty six percent at 31 December 2003
the total value of non performing loans were eighty five point dollars
Belize. My analysis of valued delinquent loans at 31December 2003 indicates
that at least two point seven million Belize dollars was owed by one Arnaldo
Pena and his company this is just an example. Our further inquiry indicated
that Mr. Pena was constantly being granted more loans despite all his
existing loans being non-performing, as I said these are examples what the
body of the report carries. In March 2001 the DFC lent Novelo's Holdings
Limited Belize thirty million dollars for the purposes of buying a bus line
and other assets this loan did not perform. It appears that its
non-performance was concealed by way of the creation of new loan accounts
all of which became non-performing. New loan accounts to the members of the
Novelo's family subsequently to 2004 by way of a sale of assets held as
security. The DFC managed to recover some monies leaving an outstanding
balance of twenty seven point five million dollars. Our review of the Novelo
loan indicated many breaches of procedures, protocol and fiduciary duty; it
also indicated conflicts of interests in respect to which Mr.
Godfrey the Chairman of DFC has to have been a beneficiary through his legal
practice and the bank under his control in our view. This constituted a
related party transaction which should have been but was not disclosed in
the audited financial statement. Further examples of delinquent loans were
procedures were breached and our conflicts of interests were ignored,
examples include New Millennium Enterprises Limited, Aqua Marine Suites
Limited, Print Belize Limited, Royal Palm Limited, Karim Addley, Toledo Free
Zone and those are just a few examples. Most loan files were incomplete and
or procedures were not adhered to, by 31 December 2004 the total book value
of non-performing loans had increased to some Belize One Hundred and twenty
million dollars."

Manuela Ayuso: Love FM

"Hulse said that in recognition of the DFC's poor performance in 2003
Government agreed to an affective injection of a capital of thirty seven
point nine million dollars this was accounted for as a receivable from the
Government and a reduction of interest and related cost."

Mark Hulse: Forensic Auditor

"The total affected injection of capitol by GOB between the years 2002 to
2004 by h=just booking a receivable from GOB and reducing interest and other
related cost was one hundred and fifteen point six million dollars.
In 2005 GOB provided further support of one hundred and one million
dollars."

Manuela Ayuso: Love FM

"Hulse also spoke of the assets held for resale."

Mark Hulse: Forensic Auditor

"The DFC aquired various housing assets for excessive consideration of which
large cost over runs were incurred, total write down in respect to such
assets amounted to sixty nine point two million dollars. The largest
examples were Satellite City Mahogany Heights Housing Project and the San
Pedro Housing Project, in both cases there are issues relating to breach of
procedures and conflicts of interests involving senior DFC Directors. The
Mahogany Heights Project gave rise to substantial loses because of apparent
mismanagement, with regards to the San Pedro Housing Project the DFC
aquired some seven hundred and twenty eight San Pedro lots for Belize
fourteen point five million dollars. These were supposed to be filled lots
but approximately five hundred were unfilled. San Pedro assets were aquired
from Western Caribbean Properties Limited a company owned by Mr. Glen
Godfrey Chairman of the DFC, Mr. Courtney DFC Deputy Chairman was the DFC
Project Manager who approved payments to Western Caribbean Properties
Limited. Other example of assets held for resale that give rise to
substantial losses are Los Lagos Housing Projects, Indigo Cohune Walk
Housing Project T and D Housing Project, San Pedro Housing Project,
Satellite City and other smaller housing projects for example being the San
Lorenzo Housing Project and also the Soybean Project."

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#229163 - 02/03/07 05:49 PM Re: Forensic audit - DFC [Re: Marty]
Relaxed Offline
Very intersting to say the least........

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#229236 - 02/04/07 02:41 PM Re: Forensic audit - DFC [Re: Relaxed]
Katie Valk Offline
Brilliant report to say the least. And more damaging than this weeks testimony, which was unbelievable.
_________________________
Belize based travel specialist
www.belize-trips.com
info@belize-trips.com

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