Yolanda Gomez v La Inmaculada Credit Union

• Jurisdiction: Belize
• Judge: Madam Justice Michelle Arana
• Judgment Date: 01 January 2021
• Date: 01 January 2021
• Docket Number: CLAIM NO. 538 OF 2015
• Court: Supreme Court (Belize)

Supreme Court of Belize

Before

THE HONORABLE Madam Justice Michelle Arana

CLAIM NO. 538 OF 2015

CLAIM NO. 723 OF 2015

Between

(Yolanda Gomez

Claimant

and

(La Inmaculada Credit Union

Defendant

(La Inmaculada Credit Union

Claimant

and

(Yolanda Gomez

Defendant

Eamon Courtenay SC along with Stacey Castillo for Yolanda Gomez

Fred Lumor SC along with Ashanti Arthurs Martin for La Inmaculada Credit Union

Darrel Bradley for the Registrar of Credit Unions

1

The Claimant in Claim No. 538 of 2015 and the Defendant in Claim No. 723 of 2015 Mrs. Yolanda Gomez (‘Mrs. Gomez”) was employed at La Inmaculada Credit Union (“LICU”) for twenty-four years from 1991 – 2015. Mrs. Gomez was employed firstly as the Manager, then later as the General Manager.

On or about 29 ^th April 2015, the Board of Directors of LICU (“the Board”) placed Mrs. Gomez on administrative leave pending an investigation concerning alleged mismanagement. By letter dated 24 ^th July 2015, the Board dismissed Mrs. Gomez with immediate effect (‘the Dismissal Letter”). The Board stated that it had lost all trust and confidence in Mrs. Gomez's management and listed grounds for dismissal. Some members of LICU petitioned the Board to hold a special general meeting. This meeting was held on 22 ^nd August 2015. (“the Meeting”).

On or around 20 ^th August 2015, the Board published a statement to Members and to the general public to, inter alia, clarify developments at LICU that triggered an internal and external audit, which resulted in the termination of Mrs. Gomez.

The special investigation was conducted by Mr. Cedric Flowers, Certified Public Accountant, who produced a report dated 21 ^st October 2015. That report contained, inter alia, the following allegations of mismanagement:

• a. The waiving of accrued interest on active loans advanced to members of the Credit Union

• b. Dishonestly and unlawfully writing off loans advanced by Mrs. Gomez to relatives through fraudulent changes made to the Emortelle System

• c. Dishonestly and unlawfully reducing the loan balance of three accounts by processing fictitious credit to the accounts;

• d. Charging personal expenses to LICU's credit cards; and

• e. Ordering the falsification of two accounts, and instructing the disbursement of unauthorized loan facilities to Mrs. Gomez's husband by the dishonest manipulation of the said account

2

Claim No. 538 of 2015

• 1. Whether Mrs. Gomez was unlawfully placed on administrative leave by LICU?

• 2. Did the Registrar of Credit Unions have a duty to act in accordance with section 36 of the Act in a situation where the Supervising Committee did not inform the Registrar in writing that they were of the opinion that misappropriation and/or misdirection of property of the credit union had taken place?

• 3. Whether the Registrar of Credit Unions breached his statutory duties by failing to intervene when Mrs. Gomez was placed on administrative leave?

• 4. Whether Mrs. Gomez was wrongfully dismissed as General Manager of LICU on 24 ^th July 2015?

• 5. Whether the Registrar of Credit Unions breached his statutory duty by failing to intervene when Mrs. Gomez was dismissed on 24 ^th July 2015?

• 6. Whether Mrs. Gomez is entitled to damages for injury to her reputation and feelings?

• 7. Whether Mrs. Gomez is entitled to claim damages in respect of her dismissal?

Claim No. 723 of 2015

• 1. Whether the waiver of interest on active loans approved by Mrs. Gomez for the years ending 31 ^st March 2013 to 31 ^st March 2015 in the sum of $95,586.83 was lawful?

• 2. Whether Mrs. Gomez acted dishonestly, unlawfully and in violation of LICU's policies and by-laws when she approved the write-off of active loans for relatives and friends in the sum of $55,984.32 in 2012?

• 3. Whether Mrs. Gomez acted dishonestly and unlawfully by causing a credit to be made to the account of her domestic helper, Olga Hernandez, and thereby reduced her loan balance by the sum of $79,519.94?

• 4. Whether Mrs. Gomez acted dishonestly and unlawfully by causing a credit to be made to the account of her nephew, Roy Roberto Rosado, and thereby reduced his loan balance by the sum of $45,693.28?

• 5. Whether Mrs. Gomez acted dishonestly and unlawfully by causing a credit to be made to the account of her sister, Sandra Reyes, and thereby reduced her loan balance by the sum of $39,219. 46?

• 6. Whether Mrs. Gomez abused her office and acted in breach of trust by using LICU's credit card for personal purchases in the sum of $67,309.74?

• 7. Whether Mrs. Gomez ordered the falsification of the account of Fiona Reyes and Armando Gomez?

• 8. Whether Mrs. Gomez acted in conflict of interest and in violation of LICU's by-laws and policies by instructing the disbursement of unauthorized loan facilities to her husband Armando Gomez on the account that he held jointly with her niece Fiona Reyes?

• 9. Whether Mrs. Gomez acted unlawfully in ordering the disbursement of $27,000 to her husband Armando Gomez which was drawn on the account of her nephew, Roy Roberto Rosado, through the dishonest manipulation of the said account?

• 10. Whether Mrs. Gomez is accountable to LICU for the embezzlement of $436,906.34 or to otherwise, accountable for said loss to LICU?

3

Mrs. Yolanda Gomez testified on her own behalf and called four witnesses to prove her claim. In her testimony, she explained that she is currently employed as the Human Resources and Marketing Manager at Centaur Communications Ltd. She was previously employed at La Inmaculada Credit Union (“LICU”) for 24 years from 1991–2015. She was first employed as the Manager, then later as the General Manager, after departments were created as a result of the tremendous growth at LICU. Her responsibilities included:

Mrs. Gomez says that during her time as General Manager, LICU grew significantly. LICU's assets increased from less than BZD$1million to BZD$56.254 million. LICU had been in existence for 42 years but had not experienced a significant increase in assets until Mrs. Gomez assumed the post of General Manager in 1991. At the time she was removed, LICU had become the 4 ^th largest credit union in Belize. Mrs. Gomez says that she was placed on administrative leave by way of a letter from Mrs. Ena Martinez, President of LICU, on 29 ^th April 2015, so as to enable the Board of Directors to conduct an investigation into alleged mismanagement occurring at LICU ( Tab 1). Mrs. Gomez said that based on advice from her attorney, she did not respond to requests from the Board to attend meetings to address the allegations of mismanagement. She says that she wanted to reply to clear up the unfounded allegations, but LICU repeatedly refused to supply her with the reports which contained the allegations against her. Copies of the letters exchanged between her and LICU are as ( Tabs 2, 3, 4 and 5). Mrs. Gomez was dismissed from the position of General Manager by way of a letter from Ena Martinez dated 24 ^th July 2015. A copy of this letter is as ( Tab 6).

Mrs. Gomez says that she was wrongfully dismissed and the procedure adopted to affect her dismissal did not comply with the procedure mandated by the Credit Unions Act. A copy of the letter from her attorney sent to the Registrar of Credit Unions outlining the said breach of statutory duty is as ( Tab 7). She is saying that as General Manager she acted at all times in the interest of LICU and its members, and in accordance with the policies and by-laws of LICU, and the Credit Union Act. Copies of the Credit Union By-Laws and the LICU Loan Policy are attached as ( Tabs 8 and 9). Mrs. Gomez states that at no time did she abuse her power as General Manager and she did not use her position to improperly influence other staff members to act for her benefit. In the financial year April 2014 to March 2015, LICU had been experiencing problems with cash fluctuations. She inquired into the situation by requesting that their auditor conduct a special investigation to assist with this issue. A resolution was not arrived at because investigations were ongoing at the time she was dismissed. Mrs. Gomez attaches an email highlighting her concerns as ( Tab 10).

• (a) Developing and executing strategic plans and objectives;

• (b) Directing and implementing systems and processes to monitor and report on achievement of strategic plans with specific outcomes;

• (c) Guiding the growth and profit margins, specifically directing and controlling the assets, loan portfolio and other investments;

• (d) Planning and monitoring of the administrative operations and the general accounting systems used, and pursuing continuous enhancement as necessary; fully responsible for quality, cost, accuracy delivery and security;

• (e) Planning and driving marketing activities to display a vibrant institution in the community;

• (f) Interpreting financial data and directing the preparation of capital and operating budgets and investment;

• (g) Developing the organization's structure and staffing, including hiring staff and implementing compensation strategies that reward excellence and competencies;

• (h) Promoting personal development, motivation and providing string leadership;

• (i) Actively promoting outreach through financial inclusion for the unbanked sector;

• (j) Filling in for other members of staff especially when the Credit Manager was officially posted to the Belmopan branch;

• (k) Creating networks and forming alliances with stakeholders and key players such as the European Union, International Development Bank, Caribbean Development Bank, the Caribbean Micro Finance Alliance, the Belize Natural Energy Trust, The Development Finance Corporation, The Belize Rural Finance Program and Network One; and

• (l) Establishing a healthy relationship and compliance with authorities, regulators, and the community.

Waiving Accrued Interest on Active Loans Advanced to Members of the Credit Union

4 Mrs. Gomez states that on numerous...