Question
In January 2020, the government of Yoyo (which is part of the Commonwealth) invited bids for the construction of mobile internet towers. Royal Paints owns
In January 2020, the government of Yoyo (which is part of the Commonwealth) invited bids for the construction of mobile internet towers. Royal Paints owns a subsidiary, Telall, which is experienced in phone tapping and building communications networks for countries with poor landline infrastructure. If Telall won a few of these early contracts, it would be sought after for its field experience and expertise. After careful analysis, it prepared a detailed bid for the Communications Minister of Yoyo, building in half of its usual profits margin and providing a contractual guarantee that the project would be completed in two years or less. The multi-million-dollar bid was submitted before the deadline and Telall received notification that it had reached the Yoyo government. Then, despite repeated emails, phone calls, and even faxes to the ministry, there was no news on the bids or the project from the Yoyo government.
Shawn Lamb, the management accountant (and CPA fellow) for Telall, contacted the Australian commercial attach in Yoyo, who told him that the best chance was to go to Yoyo and try to meet with the Deputy Minister for Communication in person. Lamb prepared thoroughly for the trip, rereading the proposal and making sure that he understood the details.
At the communication attach office in Yoyos capital, Lamb waited nervously for the deputy minister and his assistant. Lamb had come with a clear negotiation strategy to try to win the bid. Soon after the Deputy Minister and his staff arrived and pleasantries were exchanged, he asked a few questions about Telall and the bid and then excused himself, leaving his assistant to talk to Lamb. The Deputy Ministers assistant indicated clearly that many other compelling bids had been made by firms from around the world. The assistant said Mr Lamb, I guarantee that Telalls bid will be accepted if you pay a $1 million commission. Of course, your excellent proposal does not need to be altered in any way. It was clear to Lamb that the commission was in fact, a bribe.
Required:
Lamb described his experience to his friend Amada Hugs, who manages international business development for developing countries. Hugs said that her own personal philosophy was to make such payments if they are typical in the local countrys culture. Using the provided readings as a starting point, advise Shawn Lamb on what he should do.
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