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Case Studies

Case Study – 4 : United Nation Convention Against Corruption (a case of bribes)

  • 11 Sep 2018
  • 3 min read

You are the senior manager in Indian Oil refinery. The Indian government has sent you to another country to apply for a tender for a big project. After arriving there you find out that the officials of that particular country do not pass a project without taking a bribe. You also get to know that the probability of other competing countries paying the bribe is quite high.

India is a signatory to the United Nation Convention against Corruption. What suggestion can you give to the Indian government in this situation, especially when you know how important this particular project is for the country?

Solution

In this case one is stretched by being forced to choose between material gains and values of financial integrity. Getting this proposal is indispensable for the long-term benefits of the country due to its revenue potential and also for meeting the growing energy needs of the country. Also, the issue involves other international countries that can go to any extent to secure the contract. Hence, to win the contracts one can present the long term benefits that the other country will have if it awards this contract to India. One can offer attractive prospects such as lower cost of production, higher outputs, etc., which are unique to India. As the country’s representative at an international forum, one must safeguard its honour while also trying to win the contract. In the event of any wrongdoing, one can try to investigate the foul play by other signatories and prepare a case to be presented at the United Nations. Giving bribes may yield short-term benefits but in the long run, it will harm the image of our country lacking credibility.

Throughout the entire episode one should communicate all developments to the concerned officials in the company and also to the oil ministry. Such communications may help the concerned ministry to exert diplomatic pressure on the other country. During the visit one should collect all relevant information about the different ways in which contracts are awarded and prepare a detailed report on the same. In future, such reports would aid planning and research in PSUs and award of offshore contracts.

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