So, Whitefish is the two man company that was hire to deal with Puerto Rico’s power system being down.
The basic idea of hiring a tiny company isn’t that strange. Much of the US Federal contracting system works this way. Hire some tiny company to run the subcontracting process – because that gets all of it away from the horribly restrictive rules on how direct Federal employees must be hired and treated.
So, why did this specific one win the contract? Well, there’s talk about political pull and who the hell knows? But something we do know. PR’s credit rating is somewhere between non-existent and in the toilet. The other companies contacted were asking for substantial upfront payments therefore. Whitefish asked for much less in advance.
When asked by the CNN interviewer if he would do this again, Techmanksi paused and replied: “I would, I would do a lot of things different.”
“I would probably get paid a lot more up front to cover the risks.”
Oh, why’s that?
Prepa said that pending payments had been halted after a Whitefish subcontractor contacted the authority requesting the stoppage because Whitefish owed them money. “Faced with this claim, Prepa had to stop the pending payments to Whitefish until the situation with the Whitefish subcontractor is clarified,” its statement read.
Isn’t that a classic move? Bankrupt your supplier and then cut the amount owed through negotiating with the liquidator. Or even taking over the company itself now that it’s bust. Or, perhaps, negotiating down the amount that must be paid to aid it in avoiding bankruptcy.
And the reason Whitefish got the contract was because those other potential suppliers were wise to this perhaps? Or even, were large enough that the trick couldn’t be pulled on them?