Photo: (l-r) Everaldo Puc, President, SFXCU and Rafael Dominguez Sr., General Manager, SFXCU
by Kristen Ku
BELIZE CITY, Mon. Apr. 22, 2024
St. Francis Xavier Credit Union (SFXCU) has responded to a press release issued by the Central Bank of Belize following a High Court decision.
The court affirmed the Central Bank’s appointment of an administrator to SFXCU, a move which has been the subject of legal scrutiny since March 2023 when the Central Bank Governor imposed this change due to what appeared to be unsound decisions at SFXCU that put at risk the stability of the second-largest credit union in the country.
SFXCU’s board members were subsequently banned from any decision-making power and were placed under the authority of the new administrator.
However, despite the court upholding the appointment of the administrator, it also ruled that the Registrar’s imposition of fees on the board of directors was illegal.
“You are all aware now that the court ruled in favor of the administrator who is the Credit Union, but the court also ruled in our favor in that the registrar was imposing fees to us as the board of directors because of failing to comply with some corrective measures. And so, we both had a little taste of trials,” Everaldo Puc, president of SFXCU, said today during their press conference.
Puc expressed a mix of disappointment and hope, stating that the board respects the court’s ruling and aims to work under the current conditions while anticipating a positive change after the upcoming annual general meeting.
Nevertheless, the board is still not in accord with the way things were done, especially after receiving short notice prior to the administrator’s arrival. According to Rafael Dominguez, Sr., the General Manager, the liquidity and financial status of the union were not in jeopardy as per the law’s stipulations for such a move to be warranted.
In fact, he noted that once under the new administrator, the credit union’s overall capital and liabilities slightly decreased, from 117 million dollars by the end of March to close to 115 million dollars at the end of December, as did the loan portfolio from 90 million to 87 million.
He also pointed out that while expenditures on renovations escalated, member services experienced neglect.
The board criticized the reduced access to loans for members with outstanding balances, the lack of options for refinancing existing loans, and the suspension of emergency loan services. Member dissatisfaction has reportedly increased due to a decline in the quality of owner/member services and a rise in service fees.
“While we see that the credit union is focusing a lot on spending money on renovation, the services of the members are being somewhat neglected. So, we’re wondering what’s happening and trying to get a response from the registrar to give us an update as to what is actually taking place there,” Dominguez explained.
Despite the unfavorable ruling regarding the administrator’s continuing role, both board members stated that they would not appeal the decision, and that their only wish is to continue protecting the institution’s financial health and serving the community as soon as they are allowed back in office.