ANOMALOUS transactions occur when an institution, organization or individual is unfairly put at a disadvantage or loss to the unjust benefit of an individual or individuals. To give you a couple of examples I have recently been made aware of, the first involved the purchase of equipment and the second was selecting an inferior service provider.
In the case of the anomalous purchase of the equipment, the known and reputable suppliers submitted their own quotations, which had prices within a band of about 10 percent. However, when it came for Board approval, an unknown supplier, which was not even from the industry, was endorsed due to the “superior” quality, “better” performance and “safety” of the said equipment, all of which could not be quantified since it was very subjective.
Nonetheless, due to the emphatic pleadings of the proponent with the endorsement of another Board member, the Board agreed to award the contract to the recommended supplier. It was later noticed that the awarded contract was more than five times the cost of the other regular suppliers.
The selection of an inferior and little known service provider was a puzzle to many since the previous contractor was quite well known in the industry and did an outstanding job. However, the proponent and his cohorts were able to get their way claiming that the new contractor had a better rate and offered a superior service.
Special concessions were given by the proponent, including changes in the contract after it was awarded. Due to the unsatisfactory performance, a lot of questions were raised; and it was eventually discovered that a kickback of more than 20 percent was made to the proponent.
Such actions do not serve the best interest of the stakeholders and, if you ask me, these actions are utterly disgusting. It is up to us to avert such anomalous transactions from happening. I have some observations that may prove helpful in prevention.
First is that the perpetrators have this characteristic of being self-righteous and following all the rules and procedures when it comes to others but not to themselves.
Second is that they tend to talk with a loud and confident voice and will not hesitate to intimidate or bully anyone who disagrees with them. They also have this tendency of clouding the issue as well as evading difficult and straightforward questions.
There is also normally some connivance involved with allies who will act to support, substantiate and cover up the actions of the proponent. Finally they will find ways to hang on to power to maintain influence and protect their illicit actions, to the point that they will undermine and create issues with those incumbent.
It is about time we open up our eyes and speak out against anomalous transactions. While these shameless people may be able to cover their asses by getting the appropriate approvals, just because something is legal does not mean it is right!
While it is possible that bad people may think they did not have to pay for their sins in this life, there really is no escaping karma.
Dr. George S. Chua was the 2016 president of the Financial Executives Institute of the Philippines (Finex) in 2016 and of the Federation of Philippine Industries from 2010 to 2020. He is currently an active entrepreneur with investments in fintech, broadcast, media, telecommunications and properties. The views and comments of Chua are his own and neither of the BusinessMirror nor the Finex. Comments may be sent to firstname.lastname@example.org.