Rewind

Finweek English Edition - - INSIGHT - Marc Ash­ton

then surely it had to have been trad­ing reck­lessly? Ei­ther the direc­tors or au­di­tors should have f lagged some­thing along the way.

This is wrong on so many lev­els of cor­po­rate gov­er­nance.

Machanik ar­gues: “Look­ing back now I know what I should have done. I should have al­lowed the com­pany to fold, de­clared bank­ruptcy, and walked away. But I couldn’t al­low my­self to do that. I felt it was my re­spon­si­bil­ity to my em­ploy­ees and their fam­i­lies they were sup­port­ing. So I did the un­think­able. I ac­cessed the trust ac­count in or­der to save the busi­ness.”

Rub­bish – the prop­erty mar­ket didn’t sud­denly boom again in 2010 and give you breath­ing space to put a sur­plus back in the trust ac­count.

Based on the num­bers Machanik put into the pub­lic do­main in this opin­ion piece we can only con­clude that this is a busi­ness that was pil­laged and de­frauded. There were no man­age­ment con­trols put in place, the busi­ness (and trust) ac­counts were treated as a per­sonal piggy-bank and ul­ti­mately Machanik burnt the very stake­hold­ers she claims to have been pro­tect­ing.

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