Ranch CEO Assumes Tighter Control of 13 Molokai Companies

Eight of the companies are subject to recent County of Maui lawsuit.

By Molokai Dispatch Staff

Ranch CEO Peter Nicholas continues to control operations from behind the scenes, rarely seen on Molokai in recent months since making a “business decision” to shutdown Molokai Ranch operations.

Nicholas has assumed greater control of at least 13 different Molokai companies affiliated with Molokai Properties Limited (doing business as Molokai Ranch) that deal in, among other things, real estate sales, land ownership and management, water and wastewater delivery systems, water sales and development projects.

One such project is a five mile coastal development in West Molokai known as La`au Point, which is still considered viable by the company. Nicholas recently suspended the entitlement process needed to develop the La`au project.

But the Ranch’s ability to supply water to its properties and to proposed future developments like La`au Point are currently jeopardized by two major legal decisions.

In late 2007, the Hawaii State Attorney General decided the company could no longer use the state-owned Molokai Irrigation System to transport water to West Molokai without undergoing a potentially extensive environmental assessment.

Less than one month later, the Hawaii State Supreme Court ruled that the Ranch’s permit to draw one million gallons per day from Well 17, in central Molokai, was no longer valid and would not be renewed.

The Ranch’s latest business decision anticipates Maui County taking over three of the company’s six utility subsidiaries. The move would forseeably leave the County and its tax payers to make sense of the Ranch’s complicated water and legal issues.

In the mean time, Nicholas has stripped away the officers from many of the Ranch’s subsidiary companies, leaving himself as sole director. Nicholas is President and Executive Director of Molokai Ranch and a Vice President of GuocoLeisure Limited, a Singapore-based billion dollar company which owns 100% of Molokai Ranch.

At the Controls
As of July 18, Nicholas has assumed personal control over Molokai Public Utilities and Waila O Molokai, which delivers water to the Kaluakoi resort and the towns of Maunaloa and Kualapu`u respectively. Both utility companies, subsidiaries of the Ranch, list Nicholas as director and sole officer or each company.

In a PUC hearing held July 2008, Nicholas informed commissioners that, “with regard to the (officers of MPL’s utility companies) Mr. John Sabas, Mr. Dennis Ikeda, and Mr. Roy Sugiyama are no longer employees of the company, and Mr. Daniel Orodencker is not an employee of the utilities.”

Companies managed by Peter Nicholas
Information was taken from current State of Hawaii Business Registration Office records. (Companies listed 1 thru 8 are all subject to recent lawsuit filed by the County of Maui)

1. Molokai Properties Limited (dba Molokai Ranch)
Peter Nicholas -President, Exec. Director, and Director as of July 18, 2008
Daniel Orodenker, General Mgr., Secretary, Director, as of July 18, 2008
Elaine Hammond, Treasurer, as of July 18, 2008
Richard Lim, Director, as of July 18 2008

2. Waiola O Molokai, Inc. (Wholly owned subsidiary of MPL)
Peter Nicholas – President, Secretary and Director as of July 11, 2008
No other officers or directors.

3.. Molokai Public Utilities Inc. (Wholly owned subsidiary of MPL)
Peter Nicholas – President, Secretary and Director as of July 11, 2008
No other officers or directors.

4. MOSCO Inc. (Wholly owned subsidiary of MPL)
Peter Nicholas – President, Secretary and Director as of July 11, 2008
No other officers or directors

5.. Kaluakoi Sewer LLC
Peter Nicholas – President, Secretary and Director as of July 11, 2008
No other officers or directors

6.. Kaluakoi Land LLC
Peter Nicholas, Manager since October 1, 2003
Roy Sugiyama, Manager since November 5, 2007
Dennis Ikeda, Manager since November 5, 2007
Daniel Orodenker, Manager since November 5, 2007

7.. Kaluakoi Water LLC
Peter Nicholas – President, Secretary and Director as of July 11, 2008
No other officers or directors

8.. Cooke Land Company, Inc.
Peter Nicholas, President, Director July 18, 2008
Daniel Orodenker, Secretary and Director since July 18, 2008
Elaine Hammond, Treasurer since July 18, 2008

9. MRL Management Limited
Peter Nicholas, President and Director since July 18, 2008
Daniel Orodenker, Secretary since November 5, 2007

10. Kaluakoi Acquisitions LLC
Peter Nicholas, Manager since November 5, 2007
Roy Sugiyama, Manager since November 5, 2007

11. Kaluakoi Poolside LLC
Peter Nicholas, Manager since October , 2003
Roy Sugiyama, Manager since November 5, 2007
Dennis Ikeda, Manager since November 5, 2007
Daniel Orodenker, Manager since November 5, 2007

12. Kaluakoi Real Estate LLC
Peter Nicholas, Manager since October 1, 2003
Roy Sugiyama, Manager since November 5, 2007

13. Kaluakoi Residential LLC
Peter Nicholas, Manager since October 1, 2003
Roy Sugiyama, Manager since November 5, 207

14. Kaluakoi Roads LLC
Peter Nicholas, Manager since October 1, 2003
Roy Sugiyama, Manager November 5, 2007
Elaine Hammond, Treasurer since July 18, 2008

MPL is a wholly-owned subsidiary of GuocoLeisure Limited, and Nicholas is a Vice President of the company and one of its five-member senior management team.

GuocoLeisure is a subsidiary of Guoco Group, headquartered Hong Kong, which operates as a subsidiary company of Hong Leong Group, one of Malaysia’s largest business conglomerates.

Qeuk Leng Chan heads up all three foreign companies, including the one that terminated operations on Molokai, and is one of the world’s richest individuals.