A question of survival by Bribery
Summary of the case
Sam Zizmat had election business. He won a govt. construct where he was the low bidder. In order to implement this contract he needed sufficient fund for collecting this fund he considered different alternatives such as federal Agency, commercial bank and other financial institutions. During the evaluation process he found that the federal Agency claimed a consulting fee of 5% on the loan amount. However this consulting fee would go to political hack. A further point was that the market interest rate was 2% more than the change of Federal Agency. And Sam might not be able to meet the payment as their change was so much high. The ...view middle of the document...
b) Refuse to pay the fee.
c) Offer lesser fee.
d) Offer alternative.
Answer: As my personal view the pros and cons of the alternatives available are given bellow:
a) Pay the fee:
Pros: by giving the fee I can get the loan which is low cost and time saving.
Cons: paying the fee is illegal because it is one kind of bribing.
b) Refuse to pay the fee :
Cons: If I refuse to pay the fee it is not possible to me collect the low cost loan.
Pros: I can get neither from an illligal activity.
c) Offer a lesser fee:
Pros: Lesser fee can save my cost.
Cons: More or less the fee is illegal.
d) Other alternative:
Pros: other commercial bank loan may relief from giving bribe.
Cons: it is more costly.
Question -3: Which alternative would you choose? Why?
Answer: I would choose the option “pay the fee “because:
a) Other financial institution or commercial Bank’s loan is costly.
b) Time constraint.
c) Having small cushion.
Question-4: How does personal value enter into this decision?
Answer: To choice Federal Agency...