There are many motivations for people to enter government service. One reason, particularly in less developed countries, is the financial perquisites. These benefits come in many forms and include jobs for family members, bribes, kickbacks, or, on the extreme end, the ability to totally disregard the law. Many of these factors are embedded cultural issues that need to be recognized if one is to do business in these countries.
I learned this lesson for the first time when I was in Indonesia helping establish leasing guidelines and regulations there. I remember being told by the local lessors that it wasn’t a good idea to lease to any of the president’s family members. When I asked why, they explained that these folks oftentimes did not see the need to make their lease payments on a timely basis, if at all. Furthermore, any attempts at collection usually ended in a visit from certain well-muscled and/or armed gentlemen. Basically, the returns were not worth the hassle and risk, both financial and physical.
Although this problem is not unique to Indonesia, I was heartened by a recent report in the Monitor Daily indicating that the rule of law is being established in other areas of the world. (As my Alta Group colleague Rafael Castillo-Triana, a noted expert in international leasing law, has explained to me, the rule of law is a critical component to the growth of any leasing industry.) Anyway, as I was saying, I was cheered by this article.
According to the article, reported by Ghana News Today, an African politician is learning the hard way what happens when you don't make your lease payments. Apparently, the newly elected chairman of the country's National Democratic Congress entered into a lease for industrial printing equipment for his company in April 2000 when he was a Cabinet Minister. He quickly defaulted on the lease, which was with Ghana Leasing.
WE AT GHANA LEASING COMPANY ARE GLAD THAT OUR ACTION PUTS GHANA ON THE LIMELIGHTS INTERNATIONALLY.
WE MUST POINT OUT HOWEVER THAT GHANA HAS ALWAYS BEEN A COUNTRY OF LAWS NOT OF MEN ESPECIALLY SINCE OUR RETURN TO DEMOCRATIC GOVERNANCE MORE THAN A DECADE AND HALF AGO.
Posted by: ERNEST MINTAH | March 4, 2006 12:29 PM | Permalink to Comment