Back Handers - moral dilema

[mel]

Edited to remove the actual dilema

Thanks guys your advice has confirmed my thoughts and I'm happy to move ahead and act on it. I've deleted the original post as you never know who looks at an achieve, but my way ahead and conscience are clear, nuff said.

>>> Edited by mel on Tuesday 9th November 13:48

[Don]

You can't pay him, mel. Not only does this stink but it would set a precedent.

It could be a test? Maybe the Directors are taking the opportunity to check the previous old boy was giving you the work for the right reasons?

It could be that this new bloke is scum.

Either way: you have to have a quiet, confidential word with the MD of the client business.

It could turn shitty but its the right thing to do.

[Don]

Oh: These things most certainly do go on.

In a previous Company I saw quite large "gifts" given to sweeten deals. The funniest one being a "ride-on" lawnmower of prodigious proportions.

I was so glad I wasn't in Sales at the time.

[PetrolTed]

£2K this time could turn to £4K next and he'll have you over a barrel. Having seen the pictures of your arse, I don't think you should put yourself in this position.

Tricky to prove that he's asked for though I presume?

[roop]

That's apalling. Back handers are one thing but giving you a deal and then expecting you to pay up on demand when you had no knowledge of the sub-deal is simply extortion.

Let him know that you're running the protection racket in his suburb and for £4k pa you won't repeatedly break his legs on a 6 month cycle.

In all seriousness I'd shop the bastard, get all the evidence you need and go right in above his head and explain to his directors that you don't think it's an appropriate way in which to conduct business and you expect them to take appropriate action.

[pies]

Its bribery, you get stung for a little at first then it could build over time to an amount, which is significant. But now you’re trapped as you’ve “played the game” you can’t now go to senior MD as you’re not whiter than white

You basically have two choices

Pay him forever

Or

Report it now

Your call

[Big_M]

We get approached a fair bit in our business (construction). But we refuse. Quite often the people who make these approaches are not actually the decision makers anyway.

I did find out at a previous company that a chap had received goods in kind - turned out to be a bit embarrasing as he worked for my other half and as we are not married he had not made the connection.

Mel - go with your concience on this one.

[turbospud]

its commonly called the rebate scheme,a quiet word with someone higher up should give you an insight,but you have to tread carefully

[simpo two]

You could always back out by saying: 'Yes, but if anything goes wrong you'll be in a very exposed personal poition.'

[Eric Mc]

Apart from the usual existing laws regarding tax evasion, there are new laws in place regarding Money Laundering and Proceeds of Crime. YOU could very well fall foul of such legislation if you collaborated with him. In fact, you might already be under a LEGAL (never mind "moral") obligation to report him to NCIS.

>> Edited by Eric Mc on Monday 8th November 18:26

[clapham993]

We come across this from time to time. I find that a straight bat with the individual in question is the best bet. He has dealt with your sales guy so far. I would phone him and say that your sales guy has briefed you regarding the additional payment and that, sorry, that is not the way that you do business. It is surprisingly effective.

[Don]

Had a chat with the Mrs about this: Her first reaction was "Is this a test?".

Mel: quiet word with the MD. You could even approach things with "Sorry to bring this up. I need to understand your policy with regard to gifts to employees. In my firm you have to refuse anything over £50 from a supplier. What's your policy?"

Whereupon you can broach the subject.

Clearly you will need the other MDs co-operation to organise a "sting" in which the guy incriminates himself and the other MD can fire him quietly.

If the other firm doesn't want to play ball can I suggest that you follow clapham993's advice and just tell the bloke this isn't the way you do business.

At least YOU are then in the clear and the new procurement chap will be left explaining why he's had to find a new supplier...

PLEASE let us know how you get on with this.

[Big Al.]

So You like being had over a barrel, is that with or without Vaseline? if only I'd known at the weekend! I’d have only charged you 1K!

Mel as Dave said 2k this time 3,4,5k next time.

Don't get suckered in. Don't do it!

Hold the Fecker up against the wall and tell him the way it's going to work. A good product for an agreed price, and he keeps his legs.

What gives him the right to BLACKMAIL anybody!

DON’T DO IT! It’ll be more hassle that it's worth in the long run. If you lose 90k a year turnover it's gonna hurt, you'll get over it. (Just keep the Griff for another year!)

Hope you get it sorted Soon!

[Mutt K]

Run away . If you can't run, walk. If you can't walk, crawl. Distance yourself from this. I know of a case involving a well known surveying practice where management surveyors were caught taking kickbacks from contractors for awarding work. The police were called in, and I don't if custodial sentences were imposed, but careers and reputations were certainly ruined.

[ATG]

Oh, joy. Plenty of sound advice given already. What a pain in the arse. Hope it doesn't waste too much of your time to sort this.

[thepeoplespal]

If its a large PLC the MD is not going to use a minow on £40k to do his dirty work, so you can assume he is doing this off his own bat, even if it is his superior in on it as well.

I'd be inclined to agree with the suggestion to contact the MD and arrange a meeting to discuss it.
Then your likely to be able to sort this situation out, the MD will probably want the police involved, if he has any sense and best of all you've built bridges higher up the ladder and they will know that they can trust you.

Regardless of the situation, the MD is your first port of call, if you are going to lose the contract anyway why not go down fighting and seriously ruin someones day. It should be an easy sting to collar this wide boy chancer.

[Davel]

Phone his MD and ask for an informal chat.

Tell him how greatly you value their business but you feel that your business with his company is being compromised in a way which is detrimental to the both of you.

Ask the MD how he feels that you should play it.

It could actually give you many brownie points and an informal chat with the MD ensures that you don't do anything wrong from their side.

Good luck, it is a very difficult situation but one that I'm sure the MD would want to know about.