This is an area you are not taught in auditing at colleges or professional studies. An area that leaves experienced risk management professionals with an egg on their faces. This also applies to those who enter the partnership route. It could be equated to The Art Of War and everyone should take an interest taking notes for future implementation.
The textbook highly recommends having constitutions in place to safeguard interests. However disputes abound where constitutions exist. The underlying cause will be greed.
Greed is in most cases hidden but resurfaces at critical periods such as winning a big tender or a big contract. And you don’t need to go far—just study the hunting styles of lions. Great team work and strategy in following prey—then the coordinated hunt and if lucky, dinner time. You may need to check out videos on Youtube for lessons.
Let’s share a case study;
Our first project: We pooled funds for a farming project with land secured, inputs secured under contract, soil tests done. With a week to go before tilling of land and planting—the following took place;
One member profusely protested about farming sesame and not maize? This took place despite a business plan developed and endorsed by everyone—he was part of it. Sudden change at the critical period of farming and changing crops to be planted.
The methodology involved an avalanche of complaints coming thick and fast—endless phone calls, and messages. This will tire everyone and the weak will pull out and this often results in leadership changes.
A sudden last minute change proposal followed by huge coordinated traffic often achieves changes. It’s a tiring game and often succeeds. Some in frustration can exit leaving their funds.
After achieving the change in stopping the original crop for farming— A change in crop followed, and also a change in place for operations. A distance of over 150 kilometres.
A series of changes took place resulting in a change from crops to livestock.
Financial & Risk Management Advice did not yield results—it never does. Those trying to bring light often end up leaving—which would be the objective anyway.
The new sheriff working in cahoots with a clique eventually took over promising great returns. This was before increasing share prices to eject those who could not afford and replacing them with new investors who paid huge sums.
The value of the project shot up by 500%. Later the same script was played to the remaining members till the project ended up as a family affair. Yes it ends up with these words; Iyi I company yemhuri yedu!
Where cash is involved-capture is extremely easy. The target is the treasurer—infiltrate the treasurer and it’s a done deal.
The project was not captured at inception, instead; the capturer waited for enough funds to be pooled, and final decision to plant crops reached—then changed goal posts because if the planting had succeeded, it was going to be extremely difficult to convert it into own empire.
To you scholars and lawyers—there is a critical period at which a project is captured. Do revise your drafting of constitutions. (1) Funds Pooled + (2) Critical Action Point About to Take Place.
Stop Stage 2 by all means necessary—wreck havoc, increase the noise volume, leave everyone disoriented till some exit. Win by all means necessary. If there is a constitution—shred it into pieces!
Change amounts, change venues, change periods, change terms, change leadership, change everything to suit the needs of the capturer or a small clique of capturers. And the script is almost the same across the country including the diaspora.
Now did you study this at school? If an auditor—was this part of the risk management module?
Plan for this if planning to enter into a partnership or crowdfunding project. There is a stage 2 to navigate—succeed and there lies your success. You need to include this in project planning under risk management.
