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consultingcreative campaigns

Corrupt BusinessesCorruption in Kenya is not just in the public sector: private businesses are thriving as how strip clubs thrive for the mafia to clean their dirty, drug money.

5 Signs of a corrupt business based on my experience with working in a management consulting firm in Kenya.

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Introduction

As you know, I am passionately against corruption, and not just because it’s the actual definition of a snake devouring its young – but also because not speaking against it when you have a platform for influence, you might as well condone it.Today, my take on corruption comes from a non-traditional avenue – the private sector based on my experiences with working in a consulting firm in Nairobi, Kenya.

Much has been lauded about corruption in the public sector, but it’s what happens within the private sector (alone or together with the public sector) that we’ve not really faced. This is because many citizens are not particularly interested in the on-goings of private businesses. However, this long-held belief is wrong because of two reasons:

First, corruption in the private sector will definitely spread into the public life. It’s a nasty breeding ground, grooming future, corrupt citizens and second: corrupt businesses give corrupt civil servants the outlet to ‘clean their money’ as it were. Think of it as the way the mafia use strip joints and other ‘cash rich’ businesses to clean their illegal drug money.

Therefore, yes we should care about corrupt businesses; but don’t just take my word for it. In today’s very long entry, I will take you 5 signs of a corrupt business to watch out for. I will draw from my experiences from working in a consulting firm in Kenya, which gave me real insights into their on-goings.

1: Type of clientsYou are who you associate with.

Corrupt businesses work for the government, where accountability and results are second to ‘the deal’ between the two parties. For most corrupt businesses, their source of clients is public sector. From parastals to ministries to public training institutions (because Universities have become more competitive and closer to private institutions) and also Commissions, these make up over 80% of their clients.

The reason why these corrupt businesses are not able, or would not be able to work with private institutions is simple: inability to deliver. Businesses want guarantees on solutions and deliveries or payments are tagged on this. Corrupt businesses are used to shortcuts and therefore cannot meet the demands that a company with a (financial) bottom-line would require.

Take the case for a consulting firm where to get high-end, qualified and capable man-power to deliver on private sector would require years of training, innovations within the company to design solutions for their clients and (at times) a ‘clean’ regime’ that values output rather than conformity and you’ll not have to ask why these consulting firms would never pursue ‘real businesses.’

First, corruption in the private sector will definitely spread into the public life. It’s a nasty breeding ground, grooming future, corrupt citizens and second: corrupt businesses give corrupt civil servants the outlet to ‘clean their money’ as it were. Think of it as the way the mafia use strip joints and other ‘cash rich’ businesses to clean their illegal drug money.

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External signs of corruption:

2. Young staff – absentee staff.

For corrupt businesses, there is no tenure security for employees – whether they perform well or not. This is because of three issues that collectively contribute to this phenomena, which is unlike public sector (with guaranteed tenure suffers the reverse).

Number one: The mission in corrupt businesses is not so much getting the work done, but getting the work. That is why reason number 1 is very important is the single-most defining character of these institutions. Therefore, they prefer to keep few, young employees to ‘run around’, do the grunt work and package documentations for tenders while they get a bevy of experienced associates who give their CVs for these jobs (absentee staff).

This way, the office looks like it’s running, but there is really not much going on.

Number two: After a couple of years, these young employees run the ropes of trade and realise that there is not much needed to set up their own corrupt or even non-corrupt businesses (if they are not okay with these on-goings) and they leave to do so. At the end of six to ten years, these trends begin to emerge and are a sure sign.

Number three: True professionals cannot thrive or stand these practices and normally, after a very warm recruitment (sometimes fraudulent in nature – see point number 3 below), they realise the realities of the business and leave. Part of these business realities include: working with a corrupt regime that stifles innovation, delayed payments (especially now that the Government is broke) and lack of any corporate governance in place.

3: Fraudulent structures.

Corrupt businesses are fraudulent by nature. Their mission is to steal from stakeholders in a ‘clean way’ that can be justified or slightly disguised, but at the end of the day, it’s all smoke and mirrors. This is highlighted in three symbols of fraud and conmanship (sic): Glass and mirrors show and tell, fascism culture and hostage inner-circle.

The show and tell comes from the ‘big’ things that others need to see in order to qualify that as a legitimate business. They invest in plush offices (which they may not even afford), vehicles and other material that will deletes any symbol of ‘struggling’ or organic business. However, looking closer, you will find it’s for show.

Something smells, here!

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Corruption & Fraud: what’s the diff?

There are badly maintained facilities, these businesses are in perpetual debt (as they live beyond their means) and some of these things are borrowed/loaned (not leased) to avoid committing long-term to any assets. One of the most showy aspects is ISO certification, endorsements (bought) and patronage.

These are used to help the organization pass government tender requirements but are barely if ever practiced within the company.

The fascist culture is there to suppress ethics and morality and to quiet voices of dissent. Certain thinking is not allowed especially anti-establishment. These employees are not unionized because there is no provision for social control and at the end of the day; the leadership is dictatorial as well. Employees know this and they keep quiet in order to keep their pay or to bid time to leave.

The hostage inner-circle is reality of corrupt businesses. They would not want to let people (read employees) in on these practices especially where/when financial transparency cannot be allowed. Therefore, only a few people are usually in on the ‘big picture’ while employees are fed

on propaganda – the other propaganda (said above) is reserved for clients and authorities, but this is for internal rule. Therefore, they bring on ‘good apples’ or innocent employees mainly interns and heads of departments when they want to capture or appeal to a certain internal/external group. However, their tenures are short and if the management is unable to convert them to their way of thinking, they are let go. Note: I remember being brought in to manage a graduate training programme for a consulting firm. The firm was looking to have a fresh face and capable person to manage the ‘situation.’

At the beginning, the promises looked real until, not even a month into the program, it became obvious that the firm could not even pay their salaries (let alone mine!). To manage this issue, the boss ‘disappeared’ for some time then he called me to ‘go back and manage the situation’ as he looked for their salaries. So you can imagine being a new employee (unpaid) and then being asked to lie to others that they’d be paid! These were young people who were at their first job: it was a moral and ethical challenge that one should not be asked to bear, and I guess, I did not pass muster to get into the inner circle.

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Visible consequences of the rot.

4. Mismanagement

Corrupt businesses cannot plan or plan well because their business is based not on product, capabilities and networks, but on the willingness of the other players to be corrupt.

Therefore, planning is hard and so is management. The issues stated above, especially cliques within the company and a paranoid top management (very small group or one person). When decisions and activities are not based on plans and timelines but on the whims of the person (or few people) who, in themselves are corrupt and unethical, things turn bad very fast.

For show and tell, these institutions may even have a bureaucratic system in place where documentation is there. However, as we’ve seen above, these are mainly fraudulent and used to punish rather than to move the activities.

5. ‘Projects’

Every corrupt government works on projects: they drive the propaganda machine and are used to show that something is happening.

While not no be confused with fraudulent structures which are designed to deceive, projects are big ideas that die too soon… but as a rule, they are always happening before ‘something goes wrong’ and it’s back to the drawing board.

This is the same way these corrupt companies are run. Because of poor corporate governance, fraud and mismanagement - these never happen. Every time you speak to these businesses, they are up to something; but it never seems to happen.

It’s not just in the public sector where the rot of corruption manifests: corrupt businesses hand a raw deal to their employees perpetuating the level of dillusion citizens experience everytime with their government.

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This story must be told...

My personal experience with a corrupt business left a bitter taste in my mouth and in the end, it was not worth it. For one, when I refused to play ball with the interns and of course, not having being paid – I quit the job because it was not worth the moral decay. However, the aftermath of quiting was not enough for such a fascist institution.

The CEO, unable to keep his word on making payments was afraid I’d bring this issue to light and went to court with a fake defamation claim, or as he told me later – to shut me up. This claim, served to me on Christmas eve, 2015 was fabricated to ensure that not only did I not ask for payments but would be stuck fighting it in the new year.

Aware that I was having a difficult pregnancy, the delaying maneuvers worked, as I was in bed rest for 3 months... However, when I got off bed rest at four-months pregnant and started to fight this issue (including others such as paying off a web designer to pull down my business website for the Manchester United fandom, United Damu), he pretended to reconcile in order to buy time to pull down the case. He did this on 15th March 2016.

Should I have fought him or should I have put my head down for a payday? Should I have accepted to forgive and move on and shake his hand when he started to stalk me, asking me to go back and help him with the 2016 strategy or some other project – and then he’d be able to pay me (blackmail ehe?).

Some people have and the employees who helped me build the case for the United Damu have stayed and they are not bad people. But here I am, a mother to be – I want to build a legacy for my unborn child. When he/she comes to this world,

I want to have build a better world not just for my family but everyone else. If by my words and my advocacy, if by my contacts and influence I can help curb or even bring down more corrupt businesses – then I will. I have a duty and that duty is bigger than my brief personal comfort.

I am glad I suffered through this, because then, how can we not know these evil, corrupt businesses exist and the extend of their malice?

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About Round Square Marketing Contacts

Round Square is an experientail marketing firm offering consultancy, creative and campaign solutions for businesses.

We are focused on helping companies, brands and projects kick-off and offer speciallised solutions for mobilisation of funds.

Every year, we take on a campaign or two on social issues and have so far worked on non-profit projects on peace (2013); entrepreneurship (2014); corruption (2015). Starting April 2014, we shall be working on more entrepreneurship projects to culminate in the Entrepreneurship Summit in New York, August 2016. Our home page is www.roundsquarem.com

This document is produced by consultants at RSQM as an opinion peace on a social issue. It is not intended to provide specific advice on your circumstances.If you require advice or further details on anymatters referred to, please contact us at Round Square Marketing or use the author’s contacts: email/blog/social media.This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by RSQM and is not intended to represent or imply the existence of an association between RSQM and the lawful owners of such trademarks.

Copyright © 2016 RSQM All rights reserved.RSQM, its logo, andAweome are trademarks of Round Square Marketing

Grace Musyoka is a founding partner at RSQM. She’s a social entrepreneur and a Manchester United fan who runs the local fanclub in East Africa.

Grace is passionate about fighting corruption and has published several articles and featured stories.

You can reach Grace at grace@roundsquarem.comYou can also view her personal publications at Facebook/myawesomeblog.tipsYou can follow her on Twitter @GMutheu