July 2, 2008
The Maui News
It may take a legion of lawyers, a battalion of bureaucrats and an army of accountants to unravel the increasingly tangled affairs of Molokai Properties Ltd., which has shut down Molokai Ranch and is threatening to shut down two water companies and a sewage treatment system.
It seems when the conglomerate GuocoLeisure Ltd. bought the ranch in 1987, its investment strategy failed to consider how its plans would be met by the people of Molokai. Although the comparison is admittedly far-fetched, it sounds like GuocoLeisure made the same mistakes the U.S. made when it invaded Iraq - not enough attention paid to possible, or probable, consequences.
Some 1,200 residents of Molokai are now pawns in a three-way struggle between the state, county and Molokai Properties Ltd., which says it cannot afford to keep losing money on the two water systems.
Molokai Properties wants a subsidy in addition to higher rates. There is a strong implication the land company is ready to abandon the systems. Maui County's legal position is that the utilities should be forced to remain in operation. The county contends it is not able nor legally required to provide the utility services, and that Molokai Properties should face monetary and criminal penalties if it doesn't follow PUC orders. There are some who say it is the state that should be responsible for continuing services if Molokai Properties doesn't.
The situation poses some interesting questions:...
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