In a landmark ruling that reinforces regulatory authority over financial institutions, the Belize High Court has affirmed the legality of former Saint Francis Xavier Credit Union General Manager Rafael Dominguez’s dismissal. The February 19th verdict brings closure to a contentious two-year legal battle that exposed significant operational deficiencies within the Corozal-based financial cooperative.
The judicial decision validated the Central Bank of Belize’s intervention, which commenced in 2023 when investigators identified substantial administrative failures at SFXCU. This discovery prompted the appointment of an interim administrator, culminating in Dominguez’s termination in May 2024.
Former manager Dominguez had contested his dismissal as procedurally improper and disproportionate, simultaneously seeking over $800,000 in severance and contractual benefits. The court systematically rejected these claims, determining that the Registrar of Credit Unions operated within legal boundaries, provided sufficient opportunity for response, and furnished adequate justification for the termination.
While the majority of Dominguez’s compensation demands were dismissed, the court acknowledged his entitlement to severance pay according to the credit union’s internal regulations. The ruling mandates the current administrator to recalculate this amount under the institution’s established guidelines.
The Central Bank of Belize welcomed the decision, emphasizing that it strengthens their regulatory mandate to protect the credit union sector. The verdict signals continued commitment to rigorous oversight and examination procedures, ensuring member interests remain safeguarded against operational mismanagement.