Dilemma 6: Local agent - Dilemma

You are the sales manager for a company which wishes to bid for a contract in another country.  The company has not worked in that country before.  You are approached by a local agent who tells you that he can help your company win the contract.  He knows the Minister of Infrastructure which is the department responsible for the contract.  The agent’s scope of work would be to assist in submission of the tender.  The agent states that he would charge a fee of 5% of the contract price, which would be payable to him upon award of the contract.  It is very important for your company to win this contract.  It will be very difficult for the company to work in the country without local advice.  But you have read in the newspaper that some companies which have appointed local agents have been convicted of corruption.

 

Do you do appoint the agent? 

 

If you do, what are the risks? 

 

How do you minimise these risks? 

 

Consider your position, and then go to the answer on the next page.