Posted by Hiuare Malaita Shipping Company (MSC) is currently sick and needs financial injection. Its good to hear that Taiwan injected some dollars into its account. I remember in 1995 I boarded Ramos II from Honiara to Suu harbour when I was a student at Suu National Secondary School. I realized that Malaita has three ships named Ramos I, II and III. These ships operated well and provide adequate services to whole Malaita. No doubt about it. It was early 1999 that MSC started to experience financial problem. This warrants a bit re-structure which MSC did. RE-STRUCTURE. MSC delegation went to Vanuatu in 2001. They negotiated with SHEFA Province to lease RAMOS II to them. I was in Vila and met our delegation. Lease Agreement was signed and stamped. Both parties were expecting high profits from the deal. EARLY THIS YEAR. It was early this year that MSC again stuck with financial problem. It is worse at this time because there was a call for winding up MSC. When asked the MSC Board about its problems; their response was these three ships not making any profits. Is that a problem? I think its a serious problem. WHAT IS NEXT? Since Taiwan pumped in some dollars; it gives option for fresh consideration to maintain this MSC. Otherwise, MSC is ready to be axed by its creditors through winding up action. OVERHAULING EXERCISE Before Malaita shipping Company start its new administration; we must review and know the feed back about its financial status and administration outlook. This include setting up a Committee to investigate and make independent report about the: 1. Financial position of Ramos I,II and III. 2. Management and Administration practices and 3. Possibility for fresh consideration or winding up of MSC There is no doubt that these three ships had been making money over the years. I reserve this part for the appointed Committee to make report about it. 2. MANAGEMENT AND ADMINISTRATION PRACTICES. Running a shipping Company is a risky and expensive exercise. Some made allegations that MSC Board members their relatives not paying full sea fare. Other said some paid $10 or $15 to go to Auki. Its interesting to note all these bad practices. If these kind of bad practices continue how can MSC recover its debts. We have a very serious problem here. 3. FRESH CONSIDERATION. Sea transport is one of the need for all Malaita people. We want the MSC to continue with its operation. How can we do that? Of course; restructuring is necessary. For example; whether to sell Ramos II or lease it again. Whether to sell all ships and bought new ones. Or no option but to wind it up. 4. NEW OUT-LOOK. If the Committee found that the existing MSC Board adequately or seriously failed to conform to the above 1,2,3 and other serious findings then it is safe to argue that a total overhaul is necessary. CONCLUDE. You know when we repair a house, we have to make serious improvement as well in order to make it look new and stronger. See MSC no doubt is at the state of bankruptcy; which implies that it is incapable and does not have the ability to continue with its existing operation. Therefore, Malaita Shipping Company Board is facing two risky choices to make that is either to re-structure MSC or wind it up. Do you know why MSC Board do not have any more choices to make beside these two? Indeed it shows how serious and bad the management and the present financial status or position of Malaita Shipping Company.
on 12/12/2003, 8:39 pm, in reply to "Malaita Shipping Co."
202.80.37.1
MALAITA SHIPPING.
I. FINANCIAL STATUS.
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