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Kaalakiota Okusaika in the news

Author
Makoto Priano
Kirkinen-Arataka Transhuman Zenith Consulting Ltd.
Arataka Research Consortium
#1 - 2013-08-02 18:40:06 UTC  |  Edited by: Makoto Priano
There've been a number of articles on the development of Kaalakiota's financial situation in recent weeks, generally tied with the fugitive Heth's mishandling of corporate finances.

There are a few points of discussion that I'm curious about;

In the first, on what basis is Heth being charged with embezzlement? While he can certainly be charged in the death of Admiral Yanala, the unlawful seizure of corporate property in commission of a crime when he seized KK fleet assets for the Haatomo situation, I wonder about the embezzlement charges against Heth. He was at that time both Executor of the State and CEO of Kaalakiota. I doubt he had any need to cook the books, and if the KK board of directors believed his conduct improper, they could surely have removed him from that post. The post facto charge of embezzlement seems overzealous. Admittedly, he certainly has done damage to KK's financial situation, and the charges of malfeasance seem appropriate.

In the second, I wonder -- perhaps even worry -- about KK's financial situation. The Echelon asset sale article quotes corporate sources as saying that they are confident that they will return to profitability in future quarters. My concern, however, is that the sale of entertainment assets will marginally decrease revenue, without necessarily decreasing debt load; unless some of the loans are nearly paid in full, it is likely that KK profits will continue to suffer. The alternative view, of course, is that Heth's considerable contribution to the Providence Directorate from KK accounts was the sole source of KK's woes. My concern is that this is not the case, and that some units may have suffered from neglect under Heth's direction.

While I doubt KK's financial position is perilous, I similarly doubt the outlook is rosy. I look forward to hearing more about Oiritsuu's plan to revitalize KK.

For reference;

http://community.eveonline.com/news/news-channels/world-news/oiritsuu-appointed-interim-ceo-in-kaalakiota-press-release/

http://community.eveonline.com/news/news-channels/world-news/cep-kk-call-for-heths-arrest/

http://community.eveonline.com/news/news-channels/world-news/kaalakiota-sells-further-echelon-assets/

Itsukame-Zainou Hyperspatial Inquiries: exploring the edge of the known, advancing the state of the art. Would you like to know more?

Andreus Ixiris
Center for Advanced Studies
Gallente Federation
#2 - 2013-08-02 18:54:04 UTC
Makoto Priano wrote:
and if the KK board of directors believed his conduct improper, they could surely have removed him from that post.

You know how Caldari sometimes tell us Federals we trust too much in the integrity of our Senate and our democratic system? Well, sometimes I think Caldari trust too much in the integrity of their corporate system.

Do remember that Heth, close to the end of his reign, wanted to scrub the State clean of corporate culture entirely because it was no longer behaving the way he wanted it to. He was able to unceremoniously oust the previous CEO of the Kaalakiota corporation - do you think he didn't take great care to ensure that KK's board of directors stayed cleanly under his thumb? Just because every Caldari citizen should be too honourable to resort to blackmail, intimidation, bribery and embezzlement doesn't mean every Caldari citizen is too honourable to resort to the same.

Andreus Ixiris > A Civire without a chin is barely a Civire at all.

Pieter Tuulinen > He'd be Civirely disadvantaged, Andreus.

Andreus Ixiris > ...

Andreus Ixiris > This is why we're at war.

Makoto Priano
Kirkinen-Arataka Transhuman Zenith Consulting Ltd.
Arataka Research Consortium
#3 - 2013-08-02 19:03:22 UTC
Mr. Ixiris; in which case, they would hopefully be able to document these instances of extortion, bribery, or blackmail, and charge him with an appropriate crime. However, this doesn't change that they had the power, and made no apparent effort to protest his handling of KK finances. Ex post facto legislation is something to be avoided.

And while I can appreciate your concern that this reading of the law is overly idealistic, let me put it this way: we citizens understand that we do our work in an uncertain, unfair world. However, the law, the foundation of the State should be formulated and executed as close to our ideals as we can make it; it's our higher self, and one of the most important tools with which we achieve our purpose.

Itsukame-Zainou Hyperspatial Inquiries: exploring the edge of the known, advancing the state of the art. Would you like to know more?

Stitcher
School of Applied Knowledge
Caldari State
#4 - 2013-08-02 19:14:40 UTC
Remember what happened when somebody tied to take the CPD to court?

I do. A Provist agent walked up to the bench, served the judge with an executive order to abort the trial, and the powers of the Caldari Business Tribunal were then brutally pruned back.

I suspect that the Kalakiota board were rather more shrewd than the plaintiff at the heart of that particular incident. They knew something similar would happen if they openly defied Heth, and so they played for time. Successfully, in the event.

A system does not have to work instantly after all. In the end, it DID work - the tumor has been excised and we're on to the next chapter in Caldari history, at long bleeding last. The fact that it took five years should be an indicator of just how problematic the issue really was, rather than an indicator of any lack of competence on the part of KK's directors.

AKA Hambone

Author of The Deathworlders

Andreus Ixiris
Center for Advanced Studies
Gallente Federation
#5 - 2013-08-02 19:15:02 UTC  |  Edited by: Andreus Ixiris
Makoto Priano wrote:
Mr. Ixiris; in which case, they would hopefully be able to document these instances of extortion, bribery, or blackmail, and charge him with an appropriate crime. However, this doesn't change that they had the power, and made no apparent effort to protest his handling of KK finances. Ex post facto legislation is something to be avoided.

In theory, yes, you want to avoid it. When your boss can make your livelihood and possibly your life suddenly vanish like a candle flame in a gas giant superstorm, however, it might not be prudent to bring evidence of corporate malfeasance to light until his grip on power has slipped somewhat. Heth, for the better part of five years, held enough power within the State to give his cronies in the CPD almost unlimited authority while making them practically untouchable. He could co-opt vast swathes of the State's resources and manpower. He enjoyed vast - deeply misplaced, but vast nonetheless - popular support from the State's common populace and loyalty not only from a large fraction of the Caldari Navy (the name "Sami Okuuda" springs to mind) but also from a select number of duplicitous capsuleers.

To whom should KK have appealed? The CEP? The CBT? Despite what Dex Nederland constantly tried to tell us, Heth wasn't really accountable to either - Odo Hakaalen outright said that the power of the CEP to oppose the CPD was limited and that even those who desired to do so, quote, "had their hands tied."

Heth was a tyrant who, regardless of the illegitimacy of his claim, held tremendous power within the State. This is not a man you cross unless you're absolutely certain he can't cross you out.

Makoto Priano wrote:
And while I can appreciate your concern that this reading of the law is overly idealistic,

It bloody well is. The Caldari people have a very strong pragmatic streak which is one of the things I've always admired about them, and anyone clever enough to become a director in a Big 8 corporation is intelligent enough not to get themselves disappeared by rocking the boat captained by a dangerous, ruthless lunatic with delusions of genocide.

Andreus Ixiris > A Civire without a chin is barely a Civire at all.

Pieter Tuulinen > He'd be Civirely disadvantaged, Andreus.

Andreus Ixiris > ...

Andreus Ixiris > This is why we're at war.

Anja Suorsa
Deep Core Mining Inc.
Caldari State
#6 - 2013-08-02 19:31:50 UTC  |  Edited by: Anja Suorsa
Stitcher wrote:
Remember what happened when somebody tied to take the CPD to court?

I do. A Provist agent walked up to the bench, served the judge with an executive order to abort the trial, and the powers of the Caldari Business Tribunal were then brutally pruned back.


I'm pretty sure you're referring to the case involving us (DUTY), in which case we neither represent, nor represented the CPD. And for obvious legal reasons I'll make no further comment.


Edited to more accurately reflect my (extremely minor) point being that it was not the CPD taken to court.
Makoto Priano
Kirkinen-Arataka Transhuman Zenith Consulting Ltd.
Arataka Research Consortium
#7 - 2013-08-02 19:49:12 UTC
Hakatain-haan, Mr. Ixiris; you're both getting terribly caught up on the notion that I'm saying, "Oh, it's too late! The law doesn't allow it because it's too late!" -- no. What's important to the embezzlement charges is that he had the legal authority to do what he did at the time. He had every right to employ the funds of Kaalakiota in pursuit of the betterment of the State and corporation. If he didn't as CEO of KK, he could very well have directed himself to do so as Executor of the State. The problem is retroactively circumscribing his power. Consider an analogy of actions in Black Rise; if we decided, retroactively, that militia pilots operating in the warzone were acting criminally, and had them declared outlaws post facto, what would this do to those who were attempting to do their duty at the time?

Ex post facto legislation betrays the bond of trust and duty between State and citizen of the State, and does not give us any benefit that we do not already have. There's still plenty enough to charge Heth with, and plenty enough to see him given tea, without cooking up additional, potentially spurious charges, and setting a terrible precedent.

Further, please note that I make a distinction between idealism formulated in law, and realism in action.

Maker.

More important is what it does to Kaalakiota's financial situation. For instance, let's say that it is indeed classed retroactively as embezzlement despite his entirely legal authority at the time. In such a case, KK may have recourse to petition for redress from Heth, or those who knowingly benefited from embezzlement -- which is to say, may be legally able to seize the assets of the Caldari Providence Directorate, the accounts of Provists who have gone fugitive, and so on. These assets may be better employed to reimburse Caldari Construction for lost productivity during the Haatomo siege, or for Caldari Navy assets lost due to Heth's malfeasance, or to fund continued operations against Provist auxiliaries in Black Rise, or any number of other things.

That's a more important issue. We may never see Heth before a tribunal. Kaalakiota's financial situation is the more pressing matter.

Itsukame-Zainou Hyperspatial Inquiries: exploring the edge of the known, advancing the state of the art. Would you like to know more?

Stitcher
School of Applied Knowledge
Caldari State
#8 - 2013-08-02 19:58:02 UTC
Anja Suorsa wrote:
I'm pretty sure you're referring to the case involving us (DUTY), in which case we neither represent, nor represented the CPD. And for obvious legal reasons I'll make no further comment.


Indeed you did not. you were among the defendants.

I did say that the KK board were likely more shrewd than the plaintiff, did I not?

AKA Hambone

Author of The Deathworlders

Anja Suorsa
Deep Core Mining Inc.
Caldari State
#9 - 2013-08-02 20:06:42 UTC
Stitcher wrote:
Indeed you did not. you were among the defendants.

I did say that the KK board were likely more shrewd than the plaintiff, did I not?


You did. My exception was taken to your opening (pedant that I am) and I will edit my post to reflect that. An unusual oversight on my part, for which you have my apologies.
Stitcher
School of Applied Knowledge
Caldari State
#10 - 2013-08-02 20:31:00 UTC  |  Edited by: Stitcher
if the CPD weren't involved at all, they wouldn't have shut the trial down. The fact is that, although the CPD wasn't among the defendants, the action in question had to do with missions commissioned by, and carried out on behalf of, the Heth administration.

Anyway, Priano-haani:

Quote:
What's important to the embezzlement charges is that he had the legal authority to do what he did at the time.


Except that, in fact, he didn't. He had the ability to do it, and the ability to demolish anybody who tried to stop him, but he didn't have the legal authority. What he was doing was thoroughly illegal, but nobody at the time had the ability to prevent him

He's being charged today for crimes he committed yesterday. As is the case for all charges and trials. It has never happened the other way round, and indeed can't thanks to elementary causality.

AKA Hambone

Author of The Deathworlders

Gabriel Darkefyre
Gradient
Electus Matari
#11 - 2013-08-02 20:40:52 UTC
Hypothetically, it is possible that Heth was funnelling Corporate funds towards the Templis Dragonaurs, especially as it became clear that the tide was turning against his cause, and cooking the books to hide the fact.

If true, it would certainly explain why embezzlement charges have been put forward.
Diana Kim
State Protectorate
Caldari State
#12 - 2013-08-02 20:42:50 UTC
Makoto Priano wrote:
While he can certainly be charged in the death of Admiral Yanala...

In fact, he cannot.
For those readers, who are unfamiliar with Caldari customs, I would like to note, that for the Tea Maker Ceremony the party, that takes the tea, must agree to take the tea voluntary, understanding the consequences.

Honored are the dead, for their legacy guides us.

In memory of Tibus Heth, Caldari State Executor YC110-115, Hero and Patriot.

Stitcher
School of Applied Knowledge
Caldari State
#13 - 2013-08-02 21:00:45 UTC
They must also have the option of not taking it, knowing the consequences.

Admiral Yanala was not in fact given that alternative, from what I have heard.

AKA Hambone

Author of The Deathworlders

Steffanie Saissore
Tyrathlion Interstellar
#14 - 2013-08-02 21:08:26 UTC
Diana Kim wrote:
Makoto Priano wrote:
While he can certainly be charged in the death of Admiral Yanala...

In fact, he cannot.
For those readers, who are unfamiliar with Caldari customs, I would like to note, that for the Tea Maker Ceremony the party, that takes the tea, must agree to take the tea voluntary, understanding the consequences.


Unfortunately, from other accounts the admiral was encouraged rather strongly to take it. The option to not was removed and thus, from what I have heard, a violation of the very tradition as Verin has already pointed out.

We travel in the dark of the new moon,

A starry highway traced on the map of the sky

Makoto Priano
Kirkinen-Arataka Transhuman Zenith Consulting Ltd.
Arataka Research Consortium
#15 - 2013-08-02 21:16:00 UTC
Hakatain-haan; please. Your response is insultingly simplistic. Under what law is Heth not allowed to direct funds of the corporation he is chief executive officer of? Under what law would Heth as Executor not be permitted to require additional levies of resources for the Providence Directorate? He clearly has the authority to issue a draft, as he did so without challenge. Further, the Providence Directorate has been addressed as a Kaalakiota-Ytiri conglomerate before. Under what circumstances would the CEO of a corporation not be allowed to direct funds from one division to another?

http://community.eveonline.com/news/news-channels/world-news/heth-declares-national-draft-cites-gallentean-threat/
http://community.eveonline.com/news/news-channels/world-news/mega-corporations-announce-partnership-with-caldari-providence-directorate/

Heth is certainly guilty of malfeasance and willful negligence, as Kaalakiota's fortunes have languished. But embezzlement? If he had not fallen from grace and wounded Kaalakiota, patriots would have applauded his dedication to the State. Surely even you must acknowledge that.

Kim-haani; the ceremony occurred under duress. It's as simple as that.

Itsukame-Zainou Hyperspatial Inquiries: exploring the edge of the known, advancing the state of the art. Would you like to know more?

Katrina Oniseki
Oniseki-Raata Internal Watch
Ishuk-Raata Enforcement Directive
#16 - 2013-08-02 21:32:29 UTC  |  Edited by: Katrina Oniseki
Stitcher wrote:
They must also have the option of not taking it, knowing the consequences.

Admiral Yanala was not in fact given that alternative, from what I have heard.


As long as the option to not take the tea is given, the consequences can be extremely severe. It's less about the reality of choice and more about the illusion of choice. Just because it must be offered as a choice does not mean the consequences of refusal must be tolerable or survivable.

Yanala may have technically had the choice to refuse the tea, but the consequences of doing so could have been immediately fatal anyways. She may never have walked out of that room in anything but a black headbag and handcuffs - if she could walk out of that room at all. There have been countless historical cases where those who refused the tea were simply killed where they stood, thus dying without any honor at all. In historic times, death by the sword was a common consequence of refusal. In modern times, an extended and possibly torturous imprisonment or exile are the norm. Often enough, both cases are not always preferable to death. It is extremely rare where refusal means simple freedom to move on and live somewhere else.

It is pleasing and comforting to think of the Tea Maker ceremony as something that follows a romantic set of rules that offers honorable death or harmless exile... but the reality is much different. This lends itself to an odd situation, where the prosecutors of the Ceremony are at risk of being punished should they fall out of political favor or force it on the wrong person.

In addition, we the general public have no way of knowing exactly what alternatives were available to Yanala, only that Heth 'forced' her to take the tea. We don't even know how the word 'forced' should be interpreted. Did she voluntarily drink from the cup herself, or was it physically poured down her throat by a guard? Was she coerced or threatened at gunpoint, or merely with words? Was she told what her alternatives were at all? What were those alternatives? Did she ask?

Everything happened behind closed doors, and we don't know what really happened. It has become increasingly clear that while Heth is a raving madman, he was being flayed politically even before the Haatomo Incident. He had fallen out of favor AND served a popular figure the tea. Even if he followed typical use of the ceremony, it should not be surprising to us that the act may have backfired because of circumstance rather than the technical violation of no choice the CEP has determined.

Makoto Priano wrote:

Kim-haani; the ceremony occurred under duress. It's as simple as that.


See above. This is normal.

Katrina Oniseki

Stitcher
School of Applied Knowledge
Caldari State
#17 - 2013-08-02 21:33:04 UTC
Makoto Priano wrote:
Under what law is Heth not allowed to direct funds of the corporation he is chief executive officer of?


The embezzlement laws, Priano-haani.

AKA Hambone

Author of The Deathworlders

Diana Kim
State Protectorate
Caldari State
#18 - 2013-08-02 21:36:53 UTC
Stitcher wrote:
They must also have the option of not taking it, knowing the consequences.

Admiral Yanala was not in fact given that alternative, from what I have heard.

You always have alternative, especially when it is you who are required to do something. It is just not all peoples can see alternatives.

Honored are the dead, for their legacy guides us.

In memory of Tibus Heth, Caldari State Executor YC110-115, Hero and Patriot.

Stitcher
School of Applied Knowledge
Caldari State
#19 - 2013-08-02 21:42:08 UTC
Really? YOU are going to attempt to hold forth on flexible thinking and alternative courses of action?

You couldn't be less qualified if you were a steel bulkhead.

AKA Hambone

Author of The Deathworlders

Diana Kim
State Protectorate
Caldari State
#20 - 2013-08-02 21:46:30 UTC
Steffanie Saissore wrote:

Unfortunately, from other accounts the admiral was encouraged rather strongly to take it. The option to not was removed and thus, from what I have heard, a violation of the very tradition as Verin has already pointed out.

A gallentean position on Caldari affairs is a useless shaking of air. Gallenteans must know their place and not put their noses where it shouldn't be. Unfortunately, they can't hold themselves.

And this is why the Federation must be destroyed.

Honored are the dead, for their legacy guides us.

In memory of Tibus Heth, Caldari State Executor YC110-115, Hero and Patriot.

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