Credit confusion surrounds a trade reference

COMPUTER WEEKLY - 11 December 2001

This is the Text of the article concerned, which appears as in a normal typeface. Our Analysis is presented in Bold:-

 

THIS ARTICLE IS ANOTHER EXAMPLE OF A PHENOMENON THAT JOURNALISTS SUFFER FROM KNOWN AS THE ‘IGON VALUE PROBLEM’ – WHEN PEOPLE HAVE INSUFFICIENT UNDERSTANDING OF A PARTICULAR MATTER THOUGH BILLY MACINNES WRITES AS IF HE IS AN EXPERTS.

Confusion surrounds a trade reference used in late 1998 by I Love My Encryption Technology plc (formerly Rhodium plc) to try to secure credit lines of £250,000 from suppliers.

YES THE CONFUSION SURROUNDS BILLY MACINNES KNOWLEDGE OF FINANCIAL ACCOUNTING. RHODIUM PLC DID NOT ‘TRY’ TO SECURE CREDIT LINES, OR ‘OBTAIN FUNDING VIA DECEPTION’ AS IS THE OBVIOUS INNUENDO HERE. ARE PEOPLE THAT STUPID THAT THEY WILL GIVE A CREDIT FACILITY BY SOLELY RELYING ON A LETTER?

A note from Y2K Consultants (Europe) Ltd dated 7 September 1998 claimed a request for a credit line of $850,000 (£607,000) for Rhodium plc had been approved and was available for immediate use.

THAT IS CORRECT – THE CREDIT LINE RELATED TO ‘WORK IN PROGRESS’. ALTHOUGH AS IT HAPPENED THE IT WAS REBILLED IN A DIFFERENT MANNER IN ANY EVENT. LOVED THE USE OF ‘CLAIMED’.

Y2K Consultants (Europe) accounts for the year ending 31 March 1997 showed total assets of only £1,453 and the company’s director is listed as Margaret Cunniffe. Her name appeared as a contact on Rhodium press releases issued on 5 March 1999 and 17 October 2000. She was also listed under personnel on Rhodium’s Web site when MicroScope checked last week.

PLEASE PROVIDE THE DOCUMENTATION YOU ARE REFERRING TO AND WE CAN REVIEW IT. ASSETS AND TURNOVER ARE TWO DIFFERENT THINGS. THE TOTAL ASSET FIGURE (IF IT IS CORRECT) JUST RELATES TO ONE DAY OF THE YEAR. WHAT OCCURRED IS THAT Y2K WAS A SPECIAL PURPOSE VEHICLE (A COST CENTRE) WHICH HAD NO NET FUNCTION AFTER THE PURPOSE WAS COMPLETED. MARGARET CUNNIFFE WHO WAS THE DIRECTOR OF THAT COMPANY WAS A WORKER AT RHODIUM PLC VIA A CONTRACTOR AGREEMENT. MARGARET CUNNIFFE AN EMPLOYEE OF RHODIUM PLC. THERE IS THEREFORE NOTHING MYSTERIOUS ABOUT HER NAME APPEARING ON RHODIUM MARKETING MATERIAL AS BILLY MACINNES SEEMS TO MERRILY STATE. AS A SPECIFIC EXAMPLE WHEN JOSEPH DE SARAM CONTRACTED TO BULL INFORMATION SYSTEMS, HE APPEARED AS A MEMBER OF THE TEAM BUT WAS NOT AN EMPLOYEE. UNFORTUNATELY, THIS ARTICLE IS JUST A CONSTRUCT DESIGNED TO QUESTION THE VERACITY OF JOSEPH DE SARAM AND RHODIUM PLC. FURTHERMORE IF THE YEAR ENDING 31 MARCH 1997 SHOWED ASSETS OF GBP 1,453 THEN SO WHAT? IF THE LETTER DATED 07 SEPTEMBER 1998 STATED THAT A ‘FACILITY WAS AVAILABLE FOR USE’ THEN THIS BEARS NO RELEVANCE TO A SET OF ACCOUNTS IN A DIFFERENT ACCOUNTING PERIOD. THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 1998 WERE NOT AVAILABLE AT THE TIME, AND IF THEY HAVE NOT BEEN FILED THEN THAT IS THE RESPONSBILITY OF MARGARET CUNNIFFE.  

The site said that she was “now involved in DDR2000SM, a project tipped to revolutionise the banking world”.

DDR2000 WAS A FINANCIAL SYSTEM WHICH WOULD HAVE BEEN EFFECTIVELY THE REVERSE OF A BACS BUREAU, INSTEAD BEING AN ORIGINATION BUREAU.

It added: “Her approach to day-to-day business typifies the strategy and maintains the reputation and professional approach that Rhodium plc prides itself on.”

Last week, Rhodium CEO Joseph de Saram told MicroScope that Cunniffe had not been working for Rhodium when the reference was provided by Y2K Consultants (Europe).

THIS IS JUST A FABRICATION – JOSEPH DE SARAM DID NOT SPEAK ‘LAST WEEK’ TO BILLY MACINNES WHICH IS JUST SOMETHING BILLY MACINNES HAS MADE UP. THE ARTICLE IS DATED 11 DECEMBER 2001 AND LAST WEEK WOULD HAVE BEEN ANY DAY BETWEEN 04 DECEMBER 2001 AND 11 DECEMBER 2001.

Asked how such a small company could extend such a large credit line to Rhodium, de Saram replied the facility was being provided on behalf of the consultancy’s much larger Australian parent company. He was unable to give further details.

JOSEPH DE SARAM HAD NO SUCH CONVERSATION AND IN FACT SPOKE TO VARIOUS PARTIES STATING THAT HE WAS GUARANTEEING THE STRENGTH OF SUPPLIERS BY SOFT-LOANS AND PERSONAL CASHFLOW FUNDING. AS IT HAPPENED MANY SMALL COMPANIES USE FACTORING AND INVOICE DISCOUNTING TO ACHIEVE EXACTLY THIS SO WHAT ON EARTH IS BILLY MACINNES TALKING ABOUT? RHODIUM PLC ITSELF NEVER USED FACTORING OR INVOICE DISCOUNTING BECAUSE JOSEPH DE SARAM PROVIDED THE FUNDING

An order to wind up I Love My Encryption Technology was issued on 24 November. It has estimated debts of £1m.

WAS GBP 1 MILLION REALLY SO MUCH?

Y2K Consultants (Europe) has not filed an annual return since 9 March 1998 or annual accounts since 31 March 1998.

SO IF THE LETTER FROM Y2K WAS DATED 07 SEPTEMBER 1998, THEN BILLY MACINNES’ REFERAL TO THE 31 MARCH 1997 ACCOUNTS IS LAUGHABLE. THE CORRECT THING TO DO WOULD HAVE BEEN TO SEE WHAT THE 31 MARCH 1999 ACCOUNTS DEMONSTRATED, AND THEN WRITE A RELEVANT ARTICLE. IT IS NOTHING SHORT OF GROTESQUE STUPIDITY TO WRITE AN ARTICLE QUESTIONING JOSEPH DE SARAM AND RHODIUM PLC BY USING A FLAWED EXAMPLE OF A JOURNALIST’S ASSESSMENT OF A SUPPLIER’S ABILITY TO PROVIDE A FINANCIAL / RESOURCE FACILITY IN ONE ACCOUNTING PERIOD IN WHICH FINANCIAL STATEMENTS HAVE YET TO BE PREPARED (YEAR ENDING 31 MARCH 1999, 07 SEPTEMBER 1998 LETTER) AND THEN USE THE INFORMATION FILED IN A HISTORIC AND THEREFORE IRRELEVANT ACCOUNTING PERIOD (YEAR ENDING 31 MARCH 1997) AS ‘EVIDENCE’

WHAT A FUCKING JOKE THIS IS! THE ONLY CONFUSION EXISTS IN THE MIND OF BILLY MACINNES WHO WROTE THE ARTICLE. ONE OF THE CLASSIC TRAITS OF THE DUNNING-KRUGER EFFECT THAT WAS WELL AS SUCH INDIVIDUALS BEING DIM, THEY HAVE NO IDEA THAT THEY ARE DIM AND IN FACT CONTINUALLY OVERESTIMATE THEIR ABILITIES.

THIS TYPE OF DIATRIBE CRITICISING JOSEPH DE SARAM AND RHODIUM IS NOTHING NEW, AND ‘THE DOGS MAY BARK BUT THE RHODIUM JUGGERNAUGHT ROLLS ON’ 

 

https://web.archive.org/web/*/http://www.computerweekly.com/news/2240043509/Credit-confusion

 

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