Looking the other way

If the first report of the trustee in the bankruptcy of Hypnotic and JMC teaches us anything it is that there are businesses on the island that really could not care less about rules and regulations. The trustee did not find any bookkeeping or administration at any of these two companies. There is no administration, no insight in turnover, no profit and loss statements.

Sadly, such issues only become public when it is too late. How is it possible that a company like Hypnotic that received $216,000 in management fees did not keep any administration? How is it possible for JMC to collect even more money in rent from Hypnotic and not keep any books either?

The reason is that there are no checks and balances. Mess up for one year without anyone noticing – okay. That’s possible. Two years? Also doable. But if this goes on any longer than that, somebody is not paying attention, or getting compensated for looking the other way.

The trustee has an interesting task ahead of him and the principals of both businesses could face the consequences. We feel however that those who are responsible for letting this get out of hand so far should also be held accountable.