Larynx smiled a toothy grin, “Well, sir, I need to have a full environmental impact study conducted, giving information on the potential impacts my rail will have on the jungle.”
“How long does one of these studies usually take? I apologize but I am not completely familiar with them,” Rove poked a little more.
“Oh they can be done probably in two weeks, but the hardest part is finding a scientist that has a background in environmental engineering, willing to do it,” Larynx said standing up. The Carriage was slowing down, and Rove could see the earthen city of Villaggio rising in the distance. Larynx excused himself to go talk to the pilot of the Carriage and to assure all the proper preparations were set for their arrived in downtown Villaggio.
Once the train came to a stop, and the party exited, they quickly piled into the two SUVs waiting for them. The electric powered SUVs pulled away from the city, heading into the jungle along Highway100. After ten minutes or so on the windy road, the cars took a sharp left, and headed into an even more heavily wooded section of the jungle. Rove had been to the larger of the two RPC power plants in the early days of his Presidency. At that time they had completed their legally mandated task of switching from fossil fuel power production to thermal power production. It was an initiative by President Grover Chipulta, Rove’s predecessor. The plants that ‘naturally’ produced all the power on their island, by taking full advantage of the island’s location over a rather active volcanic patch in the sea floor, RPC designed machinery meant to harness the power derived from the underground thermal vents. It was an expensive investment, and the machinery was somewhat difficult to service and maintain. However it did achieve its goal, that of being more environmentally friendly and helping to wean the island nation off of foreign oil.
The car’s conversation was rather stale, primarily just the three government officials attempting to coax the information out of Larynx about the purpose of the “emergency meeting”. All attempts failed. The CEO of RPC greeted the group on the front drive of the plant. The Main Plant was a gothic style cathedral lost in the jungle. Rove’s mind wandered, ‘This is truly a temple built for the Gods of power and electricity,’ he thought quietly, as the group walked through the humid air towards the cool air-conditioned lobby of RPC’s headquarters. They were hastily ushered directly to the boardroom, where they were seated on one side of the table, while the directors were on the other. The tension in the room was palpable.
Hampton Ray rejected his seat at the table, for a chair off to the side. The administrative assistant of the CEO of RPC sat down next to him. She was an older woman, but she too had a face of rigidity. No one spoke, outside of Rove making comments about the decorations and aesthetics of the ornate room. The CEO took his seat in the middle of the board, and opened up his leather portfolio.
Removing a piece of paper, he cleared his throat, and looked at President Rove, “Good Afternoon, fellow board members,” he looked around and they each accordingly nodded as if part of an ancient ritual, “and to our distinguished guests,” he paused. Then continuing slowly he showed clear signs of struggle, “I have asked you to join this board and myself today in the jungle at our Large Plant, or Main Plant 2, to discuss with you a topic that I consider of the utmost importance for everyone in the room. As you may know, the Republic Power Company produces 100% of the electricity used on this island. The power used by the train to get you to this side of the island, the electricity to fuel the cars that brought you to this building, and the light’s power, illuminating this very room right now – is all generated under the RPC flag. We have been great civic partners, following nobly our elected leaders into the dark when they wished us to develop revolutionary technologies to get us off oil. We complied willingly – even though it cost our company dearly,” he paused again. “The reason I have called you here today, as the CEO and Chairman of this company, I felt, it is my responsibility to not only inform you all of our situation, but also to work desperately with you to find a solution. After years of research and development and costly expansions, the Republic Power Company finds itself in a financial nightmare. Without help, tomorrow morning this board has prepared itself to vote to approve a resolution of bankruptcy,” he paused and allowed the shocked looks to sink in before he dropped the obvious bombshell, “That means the end of the Republic Power Company as we know it.”
5
The room hung in complete silence for a couple moments. The government officials’ faces were a speckled bunch. Zhang looked furious, Sensado had an expression of disbelief, and Rove emulated a sense of grave confusion. Ray however seemed to comprehend completely what was going on, to the point that when the CEO of RPC continued with his written statement Rove’s Chief of Staff wasn’t shocked at all.
Allowing for the initial awe to dissipate, the CEO continued, “For years we have been balancing the delicate matter of rate modification and research and development to make our services more efficient and mutually beneficial for the people of this company and those on this island that utilize our services. However, that balancing act becomes extremely difficult when our hands are tied in terms of our cash flow and revenue stream. The sluggish bureaucracy of the Villaggian City Council requires us to annually register and update our corporate charter through their City Department of Commerce. Our management doesn’t control our rate prices, that power rests in the hands of the Villaggio City Council. It was stated by the City Council in the official resolution ‘that corporate interest of wild expansion should not be fueled on out-of-control costs of such a vital resource upon which every citizen depends’.
“This inability to raise our prices, even after requesting seventy-two consecutive times to do so over the past five years, leads us to today, where finding ourselves asking you for help. We need you to act, or this company will collapse.”
Sensado was the first person to speak, “Let me get this straight Mr. Kompco, you want the national government of Virtagwalla, such as the Parliament and the President, and I am assuming the Ministry of Finance, to rescue your company?”
Kompco pleasantly responded although showing signs of struggle, “Minister Sensado, I believe we are in a delicate situation. This board feels as though we have been politically lynched into becoming a more sustainable industry faster than technology allowed us. We have been strangled by the aged hands of the Villaggian City Council, and quite frankly beaten down for doing exactly what my great grandfather had wanted to achieve by starting this company.”
Zhang snapped his eyes to Kompco, leaned forward and spoke firmly, “Please help me to understand because I am must be hung up on the disconnect; in what manner do you feel you have been abused, Mr. Kompco? And why do you feel we are the party to help ‘correct’ this abuse?”
Clearly sensing the Prime Minister’s aggravation, Kompco proceeded slowly, “Prime Minister, this company was started a hundred years ago with two purposes: that of producing safe and bountiful electricity for the expanding population of Virtagwalla, and second, to make a profit. However somewhere along the way it seems certain members of this island have lost the concept of the latter.”
Zhang fired back, “Mr. Kompco, are you blaming us for your company’s reckless mismanagement, and operational weaknesses?” Artimus slammed his fist onto the table violently, “You should be ashamed of yourself,” he looked at the rest of the board, “of all yourselves. You have wasted all your resources and talent out here in the jungle for the past five years. Sure we mandated that you make your energy production not dependent on foreign sources, I understand where that could be a legitimate complaint. Yet it was also you Mr. Kompco all those years ago that brokered a deal with our Minister of Finance, to assist in your research and development. If my memory doesn’t fail me now, this little project in the forest even profited off that research money. Profiting off the hard earned tax dollars of the Virtagwallan people – you should be embarrassed simply for that. And now you come to us, looking for what? A handout? A Gift? Well, I will
have nothing to do with this little exercise. I leave this discussion and decision up to my colleagues. Excuse me.”
Zhang slid back in his chair and left for the door. Hampton Ray jumped up and followed Artimus Zhang out of the boardroom. Rove glanced at Sensado who hadn’t broken her stare with Kompco. The man’s face was practically green. Attempting to bring the process back into focus, Rove sputtered a question, “Okay, Mr. Kompco, what exactly are looking for from us?
Kompco looked to a black woman sitting three directors to his left. Rove instantly recognized her as a prominent resident of Graham Street in downtown Ponchertrain. She sighed, opened up her briefcase, removed a file, and handed it to Kompco. He thumbed through some of the pieces of paper. Removing a sheet, he began to recite, “Mr. President, the Republic Power Company faces over $32 billion in outstanding debt in the form of loans, and a series of bonded issues.” He laid down the folder, and looked at Rove sincerely, “We are asking you for help. We may have made mistakes in the past, but we are at your mercy.”
Before Sensado could comment, Larynx, who had been silent for the entire meeting leaned forward in his chair, “Mr. President, and Madam Minister this is basically what needs to happen. My friend James here,” he said pointing to the standing chairman “is too proud to just come out and say it. So I will do it for him. We need you to authorize a loan of somewhere near $6 billion to be used to pacify the short-term debt issues of the Republic Power Company. More importantly, we need this loan to keep this island’s economic machine moving forward,” he leaned back in his chair, “Although my colleague,” he gingerly pointed to Kompco, “makes us seem to be the victim in this instance, he has failed to point out the obvious. You need us, just as much as we need you. If you let us fail, if this company goes under and its assets are put on the chopping block where RPC can be acquired by another Virtagwallan corporation, or potentially by a foreign nation or corporation that only spells disasters for you. What company on this earth has enough equity to buy a company with a 32 billion dollar line of debt facing its new owner? No one - that’s who. And no individual can surely do it either, no matter how squeaky-clean his or her credit score may be. So most likely a foreign government would step in and snatch up these plants. Then we will be at the merciful hand of someone else - some other government. We wouldn’t want that now would we?” he raised his eyebrow.
Rove, for the first time since he met Eric Larynx felt his stomach churn unpleasantly. His confidence and gusto unnerved Rove. This awareness didn’t settle well with Rove.
Sensado sensed the tension and spoke first, “That may very well be, but that doesn’t mean we couldn’t simply move Parliament to nationalize and absorb all the debts of this corporation. That would more than fix the current situation. Why should we go ahead with this ‘loan’ option?”
James Kompco’s face drained. Rove realized that wasn’t what Kompco had hoped for as an outcome of this meeting. Sensado though had brought up the hot button topic that Rove was confident Kompco had fought with his board over many times. He could remember during his term as Mayor, shortly before the retooling of the power plants to install their groundbreaking thermal technology generators, Kompco testified multiple times on the floor of Parliament, fighting passionately against their calls for the power company’s nationalization. Somehow he had been able to convince them then. Rove wasn’t sure he would be as lucky this time around.
The black woman leaned forward in her chair over the table and began speaking with a heavy Australian action, “That course of action would not settle well with the shareholders of this company; especially those that have used its equity to insure retirement funds. The chain of events that could be triggered by even the faintest of whispers of nationalization outside these walls could smoother RPC stock, and further cripple its financial state.”
It were times like this, Rove, finding himself knee deep in a financial dilemma, wished he would have graduated from Harvard with a Finance or Business degree, rather than a Sociology degree. ‘But that’s why you have the brilliant Jacqueline Sensado at your side,’ he would often reassure himself. Sensado cocked her head, “Fine. I would agree with you Ms. Belcherlawn, but what do you expect us to do? Never before have we been in a situation like this. We are entering uncharted territory, and I hope that we all can remind ourselves of the urgency, and sensitivity of the steps we all need to take with this situation. Initially I am not opposed to seeing what kind of steps can be taken, but how do you think the public will respond to news of a National Government rescue in the form of financial reassurance to its sole power company without talk of the people taking at least part ownership of it.”
Avoiding her last statement, Kompco continued, “There is something else with which we need your assistance,” Sensado’s head jerked to the side, interested to hear what the second way the National Government was being called on to assist, “We need the Parliament to nationalize the pricing power currently held by the Villaggian City Government, or force them to hand that authority back over to us,” he spelled out as if scripted as well.
Jacqueline leaned into Rove’s ear, “I think this matter best be discussed between us. In private.”
Rove nodded and stood up, “Ms. Sensado and I would like some time to discuss this topic in private. Is there another room we may use to do so?”
Kompco tensely lead the two officials across the hall to an adjacent, smaller room. After closing the door Sensado fell into a chair as Rove moved towards the barred windows.
The door to the room swung open, and Zhang followed by Hampton Ray entered into the room. Ray hung back to ensure, closing the door slowly. After the door was locked, the Prime Minister turned to them, “So what have we decided to do?”
Xavier crossed his arms, still looking out the window, “I thought you said you wanted nothing to do with this Artimus?”
Zhang shook his head and spoke to Rove as though he were teaching his son a lesson, “You are right. I do not want anything to do with this. However, being a rational person I recognize the necessity of action. That’s our job as politicians and as the leaders of society. Sometimes we have to wade through the muck to get our people to the promise land. So where are we at?”
Rove stood up, “We face a moral dilemma. Never before have we faced a situation quite like this, at least as far as I know. This island has been built on financial prosperity, not financial peril. Money has flown through our coffers since our earliest days like the thermal currents through the power station’s generators below us. I see no alternative to this situation, other than to help them. I think once we get past the initial sting, the biting effect of this ethical dilemma, we can look back and know we did the right thing.”
Sensado shook her head, “But what happens if this is just a temporary solution to a potentially systematic problem. If RPC is barely making it now, how can we be sure the tax dollars we would be loaning to them will ever come back – in full?”
Artimus sighed, “That’s a risk we must be willing to take,” he turned back toward the group, “In our line of work we don’t operate to make a profit. Ever. We build the civic edifices that service everyone, and we act on their behalf,” he paused, turned, and moved around the table, “Unfortunately, I see no other way than to help RPC. What are we joking here by potentially weighing the option of not helping? We cannot allow them to fail. Not only would it send Virtagwalla in a massive head spin, but think of the rest of the world. There is already talk of a worldwide recession. It has hit the United States, and has spread to parts of Europe. We luckily haven’t been effected yet – let’s not allow this to be the trip wire for Virtagwalla.”
Sensado nodded her head, “Fine then the Ministry of Finance, will require them to submit monthly financial and operational reports or something,” She paused, and then proceeded, “What about the issue of the Villaggian City Government’s control of their pricing. Should we get involved in that?”
Rove sighed, “We have to get involved, no doub
t about it. I agree the Villaggian City Council should not be the authoritative body for something that affects hundreds of thousand people that don’t call that city home. As the national government we have a responsibility to make decision over things that affects everyone, on behalf of everyone. I don’t see that as an issue at all.”
In unanimous agreement, the group filed back into the boardroom and Zhang delivered the news. ‘That’s probably the smoothest I have ever seen democracy move,’ Rove thought to himself fiddling with his pen. After all the parties understood the outcome, the government officials left, and loaded back into the Larynx Carriages headed towards Ponchertrain.
Rain had rolled in over the island during the meeting. Rove felt it was an omen. Larynx again dominated a good bit of the conversation on the ride back. Rove sat thinking about what kind of reaction the public would have when they found out their elected officials had brokered a deal to keep a failing power company in business.
Just as the doors were closing on the Carriage, Rove spun and called out, “Eric, I almost forgot to tell you. My wife, Dr. Rachel Rove is a professor at the University of Virtagwalla. She has a PhD in Environmental Engineer. You should give her a call. She may be able to help you with your environmental study. Who knows?”
He nodded as the doors shut on the carriage. The four government officials began moving down the long underground tunnel that connected the LLR station to the Capital Tower. As they reached the bank of elevators, Ray and Sensado took charge of pushing the button calling for a lift, while the Prime Minister stood distant from the others. Putting his hands in his pockets, Xavier Rove walked back towards Artimus, and gave a small smile, knowing the answer to his question, “Do I even need to ask how do you feel about all of this?”
Zhang sighed, and watched the doors to the elevator open. Nodding his head before moving into the lift, he looked down and whispered earnestly, “If this is the beginning, may God help us.”
utopia unraveling (The Virtagwala Series Book 1) Page 3