Living in a Corrupt World !

Here in Australia we are shielded from the "What's in it for me " syndrome that plays out so openly in much of the rest of the world.  In a lot of countries the cops are notorious for threatening some sort of mythical infringement that can be bought off with a bribe.   In India even minor clerical procedures fail to proceed - unless palms are greased to ensure progress.

Pity the hierarchy of companies based in the western world intent on competing in the international marketplace.  They are beholden to their shareholders to get results and yet they are bound by anti corruption laws with draconian fines and the threat of prison sentences if they compete within the terms that apply in the international marketplace.

Just such a fate has befallen both the chief executive and the chief finance officer of an Australian company competing for a major contract in Dubai in the Middle East.  Apparently it took a fifteen million illegal bribe paid to a crooked consultant who had the power to ensure that they were the successful bidder.   Such an arrangement would be commonplace in the Middle East, but completely illegal under Australian law.

The people with the fancy titles and big salaries at the top of companies with wide name recognition live a precarious life.  In the event of things going sour and disclosure occurring the finger pointing will swing into action and the politicians will condem.   These two executives are facing two year prison threats, heavy personal fines and the liklihood that they will be banned from managing companies for up to five years.   Their business careers will be virtually extinguished.

The value of a company is complicit with what the share market is prepared to pay for it and that depends on its level of prosperity.   When it gains a big new contract the media makes much of the jobs that will attract and it is seen to be adding to the national wealth.  When times are tough and the work is running out the public are quick to condem.    The firm is advised to " sharpen their pencil " and bring home the bacon !

Even when the tendering process is perfectly legal and the jobs have been obtained purely on merit a new area of corruption is awaiting.  The balance between profit and loss is often entirely conducive in successfully negotiating a work agreement with the unions - and very often that requires arrangements on the wrong side of the law.

To further complicate matters, industrial peace usually involves the multiplicity of subcontracting firms that will work on the project.   Should one of them be unacceptable to the unions it can spell disaster if conflict brings the job to a standstill despite an overall union agreement being in place.Very often, it will take an amount of money changing hands very quickly to restore order - and get the job back to schedule.

At the moment, one of Australia's biggest national companies is in the toils of an investigation by both ASIC and the Federal police.   The executives of its many competitors will be watching this progress with qualms - and the mantra "There but  for the grace of God go I "!