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Government,Construction,Business Opportunities

Because entrepreneurs are loathe to speculate on sales margins they often connive with governments to provide unique opportunities of mutual interest.

These can be as simple as the future purchase of a land at current use and market value with guaranteed planning permission for intensive building or rezoning of use further up the market value. If any authority guarantees any of this to any individual or entity rather than tender out to highest bidder with the same offer, it is without doubt because silent backhanders are built in. It is usually done with individuals or entities with which there are family, friendly or proven trustworthy links.

There are however other developer enticements in the industrial or commercial, theme sector which cloud the basic corruption background, but which are in the same category of backhanders. The theme parks are one of these. Most developers/ Financiers are loathe to invest in commercial or industrial development unless they can be guaranteed total sales and within a short period. Otherwise, they demand guarantees which are often granted by councils despite not being able to see them through in case of failure to complete the exercise or not provide the easy sales promised. The idea is to promote the sales of the offices or industrial properties through (a) prestige development without competition in the area (b) Government marketting and support of ancilliary services, like in-hours public relations, marketting, inter-tenant business facilities, sales etc. Promotional material lures in tenants and or buyers convinced that they will be better off there despite the high charges. It often works out that these do not last the year and the continuous press attention created by the government ensures that others take their place quickly. The developers in any case often lobby for these schemes and are quick to cement their political relationships and promises of sharing of the exaggerated margins

In the UK, party politically motivated business regeneration schemes which created massive marketting and public relations organisation hinged on guaranteed government backed channelling schemes, broke down within a couple of years due to the unfair advantage created that led to profiteering. Small businesses were fed on visions of growth under the control of marketting and public relations organisation whose services were to be subsidized by the Government as incentives. What happened (and was well worked out initially), was, that in the face of such an obvious influx, the bills were inflated and the average disillusioned businesses drawn in, faced with bills that they could have easily taken on themselves at half the price. Since they were being subsidized, they were probably paying the market rate at the end of the day, but in the main the services provided by non entrepreneurial advisors (often loaded with pie in the sky advise) added costs to already struggling businesses and many of which broke down. The consultants favoured, were the only real beneficiaries and it is known that some of them provided their expertise for free to the ruling party plus political backhanders. Any of these schemes in which government funding is involved, invariably has a “behind the scenes” situation that eventually results in corruption, if it is not included as part of the deal. In countries with stage managed democracies, specific departments of state unable to obtain finance for their usually madcap schemes, like advanced technological equipment, resort to such devious ways of approach which ultimately affects the pockets of those hapless people caught in the sales net. It has happened with favoured heating systems and even basic commoddity supplies where twisted arguments backed by government propaganda feed consumers into channels they eventually learn to regret. The lobbying industries – the beneficiaries, always lace the hands that feed them. However, to all intents and purposes, these matters rate second place to much that is outlandish and openly contributes to the massive wealth that corrupt politicians and public figures without hint of ethical standards, visibly accumulate. In many case, guaranteeing the super rich status of various generations of the family to follow.

The ideal thing when it comes to unmasking these silent corruptive exercises, is to demand or obtain by investigation, the names of all entities involved in the exercise. Promotors of schemes and ultimate beneficiaries cast against backgrounds often produce good results. If there is any interlooping or cross investment or financial benefits (if only to close friends or relatives) it is a sure sign of personal benefits at one time or another and therefore liable to law of privilege.

Guaranteed results, be they in the form of government indemnities or sideline associated guarantors, are usually a sign of an anomaly since the free market does not work that way and may even be classed as unfair trading at best. Restricted access to products or services which affect the free market trading price also indicates artifical boundaries that enables profiteering, in which case, the reason is likely to reflect backhanders and inter associate supports.

Payments outside region of exercise.

Backhanders do not necessarily have to be in cash. Sometimes, they are simple slices of the “cake”. In property it is usually an apartment or two or multiples depending on the strength of the deals. Simple checks in the ownerships may well prove futile as these are usually off shore or “ arms length” titles whose origins could extend into infinity. The sales or rentals income however, will emerge in the hands of the culprits at some point or another and the visible extent of their inexplicable wealth should be more than sufficient for an in-depth public demand of their origins – espcially if they relate to people within privileged circles or responsibilities. This is what happened to the political hierarchy of the Caicos Islands. These funds are usually of tax avoidance nature having been secretly transferred by third parties abroad. However, the nature of the apparent wealth in relation to local tax contribution is a clear guide to any illegal or corruptive exercise behind the scene.

It is often the case where politicians are involved, that their movements are monitored by higher levels of intelligence for which such discrepancies are a boon for future “pressures” and required line of inclination. This could prove fatal for the aspirations of any community on whose leaders delicate political claims may rest.

Related Articles - politicians, politics, government, backhanders, corruption, property, speculation,

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