We’ve told you about the dozens of charges that the Financial
Intelligence Unit is bringing against the Belize Bank and its President Phil
Johnson. The charges are for failing to report suspicious transactions under
the Money Laundering Act. It relates to cash deposits made by BTL in a period
for specific dates 2001 and 2005.
At that time, due to an acute scarcity of foreign exchange in official
outlets, BTL made the decision to purchase foreign exchange on the parallel
market. That left Financial Controller Gaspar Aguilar with the unenviable task
of having to transport and exchange tens of millions of dollars in cash. And
it ended badly – with Aguilar losing millions of dollars to black market
currency traders. But it was foretold – by the auditors – who warned
one of Belize’s most profitable companies that they were operating in
a gray area- without controls and it could end up badly. Well it has, officially
and unofficially.
Tonight we look back at a report we did in 2005 when 7NEWS obtained
official documents from BTL showing that the black market currency trade was
sanctioned at the highest level and BTL was warned also at the highest level.
[October 26th, 2005]
Jules Vasquez Reporting,
The letter shows that as Financial Controller, Gaspar Aguilar wrote to Dean
Boyce on June 13 of 2003, telling him that the company needs to secure US$3
million within 30 days to meet its external commitments. He tells Boyce he checked
the source, which would be black market currency trader, for the U.S. dollars,
and the exchange rate is US$2.18 to BZ$1. He tells Boyce, "with your approval
I can begin the purchase of the US$3 million, starting on Monday June 16".
In a signed note at the bottom of the letter, Boyce, Ashcroft's Chairman, authorizes
the transaction saying, "transaction authorized to a maximum of US$3
million at a maximum exchange rate of $2.18." That signature is Boyce's.
And if that isn't sanction enough of this very illegal business, on August
fifth, of 2003, just one month and a half later, Aguilar writes to Boyce, asking
for approval to buy US$1 million a month from August to March of the following
year at a rate of $2.18 and $2.20 in the Christmas season. Now keep in mind
all these transactions are for currency to be bought off the black market. Boyce
writes in an e-mail later that same August fifth: "I am authorizing
the purchase of US$1million per month with a maximum exchange rate of US$1 to
BZ$2.18."
All these authorizations came after Boyce was warned in August of 2003 by
the external auditors that there are "deficiencies in supporting documentary
evidence of U.S. dollar purchases." Of course, those deficiencies
existed because the currency was being purchased illegally on the black market
where there's no paper trail. In 2004, those same external auditors again warned
BTL's Board of Directors that BZ$8.2 million was used to purchase U.S. dollars
on the parallel market which is contrary to exchange control regulations. It
warns that, "the risk is fairly obvious."
All this proves that at all times, BTL's Board of Directors and its Chairman,
both Prosser's and Ashcroft's, knew of the risks involved with the way they
were changing money, but chose not to heed them and apparently also turning
a blind eye was the Financial Intelligence Unit headed by the now Chairman of
BTL Keith Arnold.
Again that report was from 2005. The Belize Bank now face the charges
that now stem form that currency trade. In a statement the bank has said that
“there is no substance whatsoever to the strangely timed allegation by
the Financial Intelligence Unit that the bank failed in 2004 to report a suspicious
transaction to the FIU…the bank vehemently denies that it has acted in
the manner alleged and will vigorously defend itself, and expects in due course
to be fully vindicated.”
Email
Print