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Have you ever failed flat in business?
alma1
#41 Posted : Thursday, September 15, 2016 10:19:49 AM
Rank: Elder


Joined: 9/19/2015
Posts: 2,871
Location: hapo
Nabwire wrote:
webish wrote:
Nabwire wrote:
Wow Hamburglar, impressive!! You lost 9 mil and still came back for round two? I am in the same exact situation, though I havent lost a significant amount of money. I came with big dreams, started a business, lost fumes from all the conmen, opportunists, hustlers, straight out thieves, friends who "borrow" money etc. Add to that KRA and Kanjo who have been an absolute nightmare, I am packing my bags and headed back to Trump land. Only difference is I never plan on doing biashara in Kenya again, but I am amazed that you saved and came back for round two.


Too soon?



I know one should never say never but I just dont see myself dealing with this madness. As much as we like to pretend, most Kenyans in Kenya are inherently dishonest people!! People want to buy on credit but when its time for paying... Then the institutions are deeply flawed, if you are honest, you end up looking like a fool, here everything is done ninja style, corruption galore and if you dont play in that mafia style game, you end up frustrated. Wacha nikuwe nakuja kutembea, heri nikae na shida za Trump.


Sad but very true. The post below yours says its being "streetwise". I call it corrupt.

Was going back to. Then I decided that before taking any jobs from Kenyans

1. They have to be referred. If not I'm not interested
2. They pay upfront. Kama hautaki nenda there are other service providers out there.
3. I don't pay hongo....Kama hautaki, kaa.

These people as Impunity calls them are nuts. You have to develop your own ecosystem if you want to survive here. And that should include avoiding these people as much as you can.

Tembea Tanzania, Rwanda and Uganda before you go back.
Thieves are not good people. Tumeelewana?

mwania
#42 Posted : Thursday, September 15, 2016 10:38:54 AM
Rank: Member


Joined: 10/29/2007
Posts: 76
Alma1, you are absolutely correct, being 'street wise' is another word for serious corruption. I really detest it. However, that is the way it is in Kenya. And it is encouraged by those in charge of enforcement of laws. In fact, if you follow the laws, you will suffer and the business is likely to go down. I will give you an example, if you import equipment from China and ship it through the Eldoret route via the Somali - 'Pay by weight' system where goods are collected in Eastleigh, you will not pay any additional taxes/ import duty which can sometimes be 30% of the value. On the other hand, if you import the same item and declare its real value via IDF, you will pay import duty (taxes). If the item cost Kshs. 100,000 in China and you pay Kshs. 3,000 up to Eastleigh, its total cost will be Kshs. 103,000. If you import it through the normal IDF declaration route, you might end up paying Kshs. 130,000 excluding courier charges. Now if the profit margin is 10%, the first option will be sold at approximately Kshs. 113,300 whereas the second option will be at Kshs. 143,000 (Excluding VAT). Now, how do you compete in such a scenario? ANd the tax evasion is known by KRA and other Government officials (it was exposed by Jicho Pevu http://www.standardmedia...-to-help-them-evade-tax) and also https://www.youtube.com/watch?v=IZRr39WOqzA
Nabwire
#43 Posted : Thursday, September 15, 2016 11:19:18 AM
Rank: Veteran


Joined: 7/22/2011
Posts: 1,325
Alma I have come to the conclusion that I will always be a foreigner in my own country, and Im OK with that. I used to be the home-is-best type of Diasporan who always defended Kenyans ( Africans) but lo and behold, kusema ukweli Mwafrika ako na shida kubwa staring with self! I used to blame politicians but have come to realize, politician is just reaping from the inherent nature of the African to be greedy, small minded, non-development oriented, petty, the list is endless. Take the example of being a small business owner in the US, when you first start out you are encouraged to start from your garage, akina Steve Jobs started from garages then gradually built their empires. Try that in Kenya!! The pettiness that is Kanjo will ensure that they completely frustrate your efforts even when they see that the business will positively impact society. Their small mindedness is only concerned about how they wont be able to "eat" if you dont have a conventional business premise. We are led by complete morons, all the way from Kanjo mpaka hio kiti kubwa. I got fed up when I was considered naive because I did not see why I should pay a bribe so my daughter can join 1st grade. Hii corruption ka street smart nimewawachia. I realized that its super hard for someone who has lived abroad for a long time to not only fit in, but to run biashara. On the other hand, a hustler from Nairobi would fit in very easily abroad coz the systems work. That said can someone please guide me on how to shut down a business and deactivate KRA's PIN? Im really hoping that saying hey, I no longer want to do business, here are your tools back wont necessitate a bribe!! Najihurumia kuwa mKenya. On UG, Rwanda, I think saa hii Im too mentally stifled to start learning a new countries culture, wacha nikue tourist.
RichVee
#44 Posted : Thursday, September 15, 2016 12:24:07 PM
Rank: Member


Joined: 1/26/2010
Posts: 124
Ai! Are we saying that it is impossible to do clean business in Kenya and succeed? Are we saying that all successful companies are corrupt?

It is difficult to do business in Kenya for sure, but there are some folks doing clean biz and succeeding. The purpose of this thread was to encourage those of us in the race that have fallen...so that we pick ourselves up, dust off and rise again!
Personally I have not given up and i am 100% corruption averse.
It is possible.
Tired of mediocrity. Am going to the very top!
Intelligentsia
#45 Posted : Thursday, September 15, 2016 1:00:45 PM
Rank: Elder


Joined: 10/1/2009
Posts: 2,436
Nice following these real-life stories.
Biy to be successful in business do you learn from others' mistakes or from others' successes?
Methinks thread needs to capture successful entrepreneurial stories as well - so that we learn frm both, otherwise just stories of failures will generate lots of negative stories as we have already seen above.

My 2 cents

wukan
#46 Posted : Thursday, September 15, 2016 1:08:44 PM
Rank: Veteran


Joined: 11/13/2015
Posts: 1,569
You can do clean business but the mortality rate is very high. In order to break even you have to under-declare taxes, take your landlord through hell including getting a court injunction or taking them to the rent tribunal, dodge kanjo guys. My story will be too long to tell but I'm still running from KRA. Doing biashara in Kenya makes you feel like a criminal any day some govt agency will arrive at your doorstep to squeeze you or place some hurdle. The worst is kanjo, damn those guys are bad news(anyone hauled before the city courts knows this). KRA has improved in customer care but still
RichVee
#47 Posted : Thursday, September 15, 2016 1:26:57 PM
Rank: Member


Joined: 1/26/2010
Posts: 124
Intelligentsia wrote:
Nice following these real-life stories.
Biy to be successful in business do you learn from others' mistakes or from others' successes?
Methinks thread needs to capture successful entrepreneurial stories as well - so that we learn frm both, otherwise just stories of failures will generate lots of negative stories as we have already seen above.

My 2 cents



@Intelligentsia, true.
The good stories of success are everywhere, the story that is never told is the one of failure...perhaps there would be more successes, if those trying would try just one more time...

"I have not failed. I've just found 10,000 ways that won't work" - Thomas Edison
Tired of mediocrity. Am going to the very top!
sitaki.kujulikana
#48 Posted : Thursday, September 15, 2016 1:43:10 PM
Rank: Veteran


Joined: 8/25/2012
Posts: 1,826
Intelligentsia wrote:
Nice following these real-life stories.
Biy to be successful in business do you learn from others' mistakes or from others' successes?
Methinks thread needs to capture successful entrepreneurial stories as well - so that we learn frm both, otherwise just stories of failures will generate lots of negative stories as we have already seen above.

My 2 cents



'better to go to the house of mourning, than to go to the house of feasting: for that is the end of all men; and the living will lay it to his heart.'
alma1
#49 Posted : Thursday, September 15, 2016 1:45:49 PM
Rank: Elder


Joined: 9/19/2015
Posts: 2,871
Location: hapo
Nabwire I hear you.

The turnover rate of my friends who came back is 99%. I'm the only one who's stayed. The rest, just got tired of the nonsense in this country.

Why is it that its easier for me to borrow in a bank in a country that calls me a nigger but entering a banking hall in my own country, I have to leave my children's names and numbers at the door?

Incredible taxation from central and local gov't. Not taxes that you pay but what they come up with when they visit your office.

Employees who think that their work is to sit down on their computers and comment upus on wazua. I was once told that my hiring skills were bad, so I decided to hire in India. No problems there at all.

I'll speak about my industry which shall remain nameless.

Most of the companies offering these services are just plain charlatans. I was once hounded for weeks ati because I was to give someone sijui 30% for a contract. Kubaff...I had not even sought the contract, they had sought me. I told them to go to hell.....on foot.

I have been asked for proposals....Another con game. You send your proposal, they tell their buddy what to quote on theirs. So I don't send proposals anymore.

I have been given a contract then it suddenly changes on pay date. For those ones I just walk out the door. I still have some guy trolling me on FB because of that. He couldn't believe someone could walk away from such a sum.

I don't believe there are good stories on entreprenuership in Kenya simply because the system is not made that way. The system is simple.

1. You bribe a journalist with 10k to write about how rich you are
2. You get calls from gate keepers who ask you for a bribe to meet the guy
3. The guy agrees, you then have to bribe them to get the contract signed
4. Then you have to bribe them to get your payment processed
5. Then you have to take them out to celebrate.

This is upus. Especially in my industry where it would be cheaper just to spam you and get it over with.

That is why a lot of Kenyans would rather get paid a paycheck than go forward with a business idea. See the story of Able wire. Super idea that can change Africa and the world, yet he's expected to bribe his way into super stardom

Pole sana Nabwire. I understand.

As for the topic OP, yes I've fallen flat. Couldn't even pay my rent. Food shida...

I'm only breathing when I realised that Kenya sio mama ao baba yangu...Looked outside the borders and somehow, others value effort. Hapa ni ukora tu.
Thieves are not good people. Tumeelewana?

RichVee
#50 Posted : Thursday, September 15, 2016 2:02:57 PM
Rank: Member


Joined: 1/26/2010
Posts: 124
Laughter has always been the best medicine for me. I think the ability to laugh even in the midst of a cold sweat is priceless.

Once i was in some foreign country with my family. We decided to go visit some spot out of town. We delayed our return and it was getting dark. We suddenly realized we were lost, no GPS. So there I am, co-driver, i am supposed to read a map and give guidance on which way to follow. Then I burst out laughing and couldn't stop laughing.

It always happens to me. But in the process my body releases some happy hormones (endorphins). Then i am able to pick myself up and focus and carry on.
Yes, we finally got home though everyone was pissed at my laughing in the midst of a crisis.

It is good to laugh at yourself
Tired of mediocrity. Am going to the very top!
Nabwire
#51 Posted : Thursday, September 15, 2016 2:03:43 PM
Rank: Veteran


Joined: 7/22/2011
Posts: 1,325
Wow Alma, kweli you have summed it well, kwanza the bribing journalists to get fame!! One thing that intrigues me is the numerous panels that are constantly held, kila siku kuna some event, you have to cough sijui how many billions to hear people speak on issues that they clearly have very little grasp of!! Aki the circus that is Kenya. But I dont regret atleast trying, nimepata MBA yangu for practically free, not by sitting in a class, but by trying to do business in an environment where everyone, and I mean everyone, is speculating on how they can vuka with your money. So dont be sorry, hii kuhustle 24/7 ya Kenyans, nataka kuipeleka huko, westerners wont know what hit them coz nitakuwa the typical Kenyan, nimeajiria, but pia nauza vitungu kwa ofisi na pia niko na kaMpesa somewhere, and did I tell you Im also a travel agent...hahahaha

I think industry yako is IT, waa huko pia nilionyeshwa maajabu!! Imagine a guy setting up a website for you, does a brilliant job, but there are some spelling mistakes. He promises to correct it and also give you a link where you cn correct mistakes yourself. Almost 2 years later, no correction made, calls are not picked up AND the idiot and his team have the nerve to ask you on numerous occasions to refer them for jobs to the point of adding you ( without your consent to their numerous FB groups ( they have like a million side hustles!! Yani sijui kama hiii unprofessionalism iko kwa damu, all people want is easy money. I never got an office ( thank God!) here's free advice, when starting out in business ( especially in Kenya) dont get an office, trust me you will thank me later.
Chaka
#52 Posted : Thursday, September 15, 2016 4:15:32 PM
Rank: Elder


Joined: 2/16/2007
Posts: 2,114
merkava wrote:
Bought a tuktuk while working in Msa back in 2013.....4months down the line...my tuk tuk is stolen,found it 3 days later at kaa chonjo bila plates,hema,batt,starter etc......sold it at a throw away price and never looked back...Fast forward Mid 2014, i move to Kampala,again work, bought a car to do taxi bizna in Nairobi and trusted my friend with the car....big mistake: series of accidents...garage kila wakati na uongo mob......threw in the towel in about 6months, gave my dad the ride ajibebe nayo....2016 am still in Kampala.....started a bakery, at Githurai 45 and i think i finally got it....so far so good.for you orders wazuans call manager at 0727837536. Thaxs


Interesting stories here..
@merkava,how do you deal with unrealiable power supply at the bakery?
merkava
#53 Posted : Thursday, September 15, 2016 5:31:12 PM
Rank: New-farer


Joined: 11/16/2015
Posts: 39
Location: Nairobi
Chaka wrote:
merkava wrote:
Bought a tuktuk while working in Msa back in 2013.....4months down the line...my tuk tuk is stolen,found it 3 days later at kaa chonjo bila plates,hema,batt,starter etc......sold it at a throw away price and never looked back...Fast forward Mid 2014, i move to Kampala,again work, bought a car to do taxi bizna in Nairobi and trusted my friend with the car....big mistake: series of accidents...garage kila wakati na uongo mob......threw in the towel in about 6months, gave my dad the ride ajibebe nayo....2016 am still in Kampala.....started a bakery, at Githurai 45 and i think i finally got it....so far so good.for you orders wazuans call manager at 0727837536. Thaxs


Interesting stories here..
@merkava,how do you deal with unrealiable power supply at the bakery?

well baking in the night most of the time
Barikiwa tufanane
nakujua
#54 Posted : Friday, September 16, 2016 2:03:34 PM
Rank: Elder


Joined: 12/17/2009
Posts: 3,583
Location: Kenya
interesting views, we always used to joke with my friend that the best biashara in kenya ni ya kiosk.
Straight from college I had a first hand experience of how the 'biashara ya deals' work, especially in the IT field and I was totally discouraged, and surprising enough this not only happens at the government level but even in the private sector.
mimi I decided to go the kiosk route, sold mitumba for a couple of years but the same was not scaling well so I decided to stop that and start producing/making the clothes locally and selling.

Success in business is not easy, and most know that for me I think we learn more from failure, at the end of the day its more common and the sooner one perfects the art of dodging failure the better.
winmak
#55 Posted : Friday, September 16, 2016 4:34:05 PM
Rank: Member


Joined: 12/1/2007
Posts: 538
Location: Nakuru
hamburglar wrote:
Mine cannot be said in five sentences. Way too much stuff has happened in my life it's almost fiction.

Ok. Let me try. Came back from the States Circa 2008 with over 9m and used it all to buy an upscale restaurant which had a rent of over 150k plus other overheads. Very expensive location. Tried to operate the restaurant semi- remotely as in do other things while I let my manager run the restaurant.

Well, after about 8 months, I fell behind so bad, had to take a loan of 1.5 m just to try and catch up on bills. It got so bad that I was maybe a week away from losing it all. Luckily I found a last minute buyer who sensed my desperation and low balled me with an offer of 5m. I didn't have a choice and had to take it otherwise I would have lost it all. I paid the loan plus interest which came to about 2m and was left with roughly 3 million. Bought three cars and rented them out for car hire business and was only paid for maybe one month before I started getting the run around. I decided to literally hijack my cars back and sold them for pennies on the dollar and was able to salvage something as the cars had already been tore up within just two months on the road. Unbelievable.

Was left with like 2m or so and didn't have a choice but to go back to the States limping and embarrassed at my failure. Luckily for me, I have a great network of college mates in the US and i was able to get another good paying job. Worked like a dog and saved saved saved while also doing some house flips on the side while doing my best to stay away from Las Vegas sevens, Heineken and the ladies. Did that for about 4 years, came back with enough saved money for round two in 2012.

This time, I am doing very well but the bruises and scars are still very fresh in my mind. I felt like I had fallen flat on my ass in business but in retrospect, now I feel like all those were very good lessons in business that have given me so much experience. Nowadays, nothing and I mean, nothing fazes me anymore. I have ice water flowing through my veins after what I've been through. I don't think there is failure in business, naivety, inexperience, bad luck, circumstances, maybe, but a real business person should not have the word fail in their vocabulary.


Wow... balls of steel those.... and yet I thought taking a 300k haircut on my stocks was bad!!
For investors as a whole, returns decrease as motion increases ~ WB
faa
#56 Posted : Friday, September 16, 2016 5:43:02 PM
Rank: Member


Joined: 5/8/2007
Posts: 709
mwania wrote:
Alma1, you are absolutely correct, being 'street wise' is another word for serious corruption. I really detest it. However, that is the way it is in Kenya. And it is encouraged by those in charge of enforcement of laws. In fact, if you follow the laws, you will suffer and the business is likely to go down. I will give you an example, if you import equipment from China and ship it through the Eldoret route via the Somali - 'Pay by weight' system where goods are collected in Eastleigh, you will not pay any additional taxes/ import duty which can sometimes be 30% of the value. On the other hand, if you import the same item and declare its real value via IDF, you will pay import duty (taxes). If the item cost Kshs. 100,000 in China and you pay Kshs. 3,000 up to Eastleigh, its total cost will be Kshs. 103,000. If you import it through the normal IDF declaration route, you might end up paying Kshs. 130,000 excluding courier charges. Now if the profit margin is 10%, the first option will be sold at approximately Kshs. 113,300 whereas the second option will be at Kshs. 143,000 (Excluding VAT). Now, how do you compete in such a scenario? ANd the tax evasion is known by KRA and other Government officials (it was exposed by Jicho Pevu http://www.standardmedia...-to-help-them-evade-tax) and also https://www.youtube.com/watch?v=IZRr39WOqzA



absolutely true. I will one day share my story with DHL /KRA thugs at JKIA.
Bigchick
#57 Posted : Friday, September 16, 2016 7:57:32 PM
Rank: Elder


Joined: 2/8/2013
Posts: 4,068
Location: At Large.
hamburglar wrote:
Mine cannot be said in five sentences. Way too much stuff has happened in my life it's almost fiction.

Ok. Let me try. Came back from the States Circa 2008 with over 9m and used it all to buy an upscale restaurant which had a rent of over 150k plus other overheads. Very expensive location. Tried to operate the restaurant semi- remotely as in do other things while I let my manager run the restaurant.

Well, after about 8 months, I fell behind so bad, had to take a loan of 1.5 m just to try and catch up on bills. It got so bad that I was maybe a week away from losing it all. Luckily I found a last minute buyer who sensed my desperation and low balled me with an offer of 5m. I didn't have a choice and had to take it otherwise I would have lost it all. I paid the loan plus interest which came to about 2m and was left with roughly 3 million. Bought three cars and rented them out for car hire business and was only paid for maybe one month before I started getting the run around. I decided to literally hijack my cars back and sold them for pennies on the dollar and was able to salvage something as the cars had already been tore up within just two months on the road. Unbelievable.

Was left with like 2m or so and didn't have a choice but to go back to the States limping and embarrassed at my failure. Luckily for me, I have a great network of college mates in the US and i was able to get another good paying job. Worked like a dog and saved saved saved while also doing some house flips on the side while doing my best to stay away from Las Vegas sevens, Heineken and the ladies. Did that for about 4 years, came back with enough saved money for round two in 2012.

This time, I am doing very well but the bruises and scars are still very fresh in my mind. I felt like I had fallen flat on my ass in business but in retrospect, now I feel like all those were very good lessons in business that have given me so much experience. Nowadays, nothing and I mean, nothing fazes me anymore. I have ice water flowing through my veins after what I've been through. I don't think there is failure in business, naivety, inexperience, bad luck, circumstances, maybe, but a real business person should not have the word fail in their vocabulary.



Wow,I have no words.You have inspired me.

All the best.


Love is beautiful and so are those who share it.With Love, Marriage is an amazing event in ones life time, the foundation of joy, happiness and success.
Liv
#58 Posted : Saturday, September 17, 2016 11:19:47 PM
Rank: Veteran


Joined: 11/14/2006
Posts: 1,311
I started a business over a decade ago and put my all into it. After 3 years it broke even but due to the fact that I could not bribe to get business it stalled. Since it was just break evening I decided that's my kinda my CSR as it had employees and some of them had families and were depending on salaries there.. This business is there and running to date....though zero returns to me. It is run by employees, we pay taxes, and control systems work....so little theft if any.....though we've had our share of employee thefts in the past.

Based on the experience gained in the first one I started another business (exclusive distribution of international products) and after we started making profits I sold it at a good capital gain. That was good success. This was my second business to sell as a going concern.

Then I started another one importing a completely different commodity and the margins were very good. However within 2 years market was flooded with similar products and the margins wiped out. We had customers who had bought on credit and some started hiding and we couldn't collect debts, eventually we had to go court to recover money and this resulted in huge loses. One of the major customer was declared bankrupt.

In my import businesses I declared everything to KRA truthfully and pay taxes correctly and make annual returns after accounts are audited. But what I would say is that you can make money one year and then loses the next year.... A lot of undercutting and loss of margins can happen. It is a difficult environment but businesses still survive.

Now I am in the process of starting another one..... I have never worked outside Kenya and I have never thought of going to another country to work or do business. So I've to keep trying here.

MaichBlack
#59 Posted : Sunday, September 18, 2016 11:18:36 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,451
God bless you @Liv - Thinking about other people and their families while there is absolutely nothing in it for you. Such people are few.

My former director was one such person. We had an employee who was in charge of ordering stuff for the company. The request and verification process from the departments was water tight but unfortunately, the fellow is the one who received the items and when we were billed we never counter checked what was billed and what was delivered. That fellow checked the invoice and if HE was okay with it, he forwarded it for payment (a huge controls lapse [in hindsight] and trust on the fellow). It turned out the fellow was ordering stuff that was being delivered elsewhere but billed to us (At times he would insist on collecting the items himself as we later learned). We only realized this when we started getting invoices with items we never used (like binding machines) and items we had not ordered in a long time (like certain types of printers etc). We also got a pay demand for an invoice that the employee had obviously not forwarded because it contained 100% items we had never ordered and it came at a time when we had no outstanding payments.

We called the company which confirmed that we owed them! We requested a representative of the company to come to our offices for a meeting. The fellow had all the documentation including LPOs for the items signed by our employee. We were in the meeting the representative, our procurement guy (his minor role in the company), the director and myself and the fellow had no option but to accept that he actually ordered those items. We had no option but to disclose what was happening to the reperesentative. He also told us that there were some of "our" orders that "we" (the fellow!) paid for in cash after the credit period. Turns out the fellow could order all type of stuff in our name (on credit) and then pay later. He then got bold and started sneeking them into our orders and finally started doing 100% personal orders that we paid for!!! After getting the details of pending payments, we told the representative we will get back to him.

I had a meeting with the director and agreed we should audit all the past invoices. The audit showed that we had actually paid for so many items we had never ordered nor had got them delivered. We called the "procurement" guy for a meeting with the evidence and he accepted that he received those items separately and bla bla bla. We requested him to leave the meeting and after further discussion, we agreed he should be fired. He was to get his letter in a day or two. The next day, the director called me - and this is the shocking part - and told me he doesn't think we should fire the fellow. He told me he knows the guy is married and has kids and if we fire him, we will be punishing the wife and kids and they had done absolutely nothing wrong!!! We agreed we will pay all outstanding payments (Because they were done with our LPOs by the person who used to do procurement and the suppliers had no way of knowing they were being taken for a ride) and bill the fellow. We also totalled all the items the fellow had obtained fraudulently. We called him for a meeting and he said how much of that money he was able to pay as a lump sum in two weeks. The rest we agreed how much will be deducted from his salary till the full amount is covered. And the fellow kept his job with a warning and the procurement function transferred to someone else with stricter controls.

Unfortunately, after some time, the same fellow came up with fake LPOs in the company name, ordered for items from one of the other companies we used to deal with and we got billed. He was fired pap!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
FRM2011
#60 Posted : Sunday, September 18, 2016 12:04:36 PM
Rank: Elder


Joined: 11/5/2010
Posts: 2,459
MaichBlack wrote:
God bless you @Liv - Thinking about other people and their families while there is absolutely nothing in it for you. Such people are few.

My former director was one such person. We had an employee who was in charge of ordering stuff for the company. The request and verification process from the departments was water tight but unfortunately, the fellow is the one who received the items and when we were billed we never counter checked what was billed and what was delivered. That fellow checked the invoice and if HE was okay with it, he forwarded it for payment (a huge controls lapse [in hindsight] and trust on the fellow). It turned out the fellow was ordering stuff that was being delivered elsewhere but billed to us (At times he would insist on collecting the items himself as we later learned). We only realized this when we started getting invoices with items we never used (like binding machines) and items we had not ordered in a long time (like certain types of printers etc). We also got a pay demand for an invoice that the employee had obviously not forwarded because it contained 100% items when had never ordered and it came at a time when we had no outstanding payments.

We called the company which confirmed that we owed them! We requested a representative of the company to come to our offices for a meeting. The fellow had all the documentation including LPOs for the items signed by our employee. We were in the meeting the representative, our procurement guy (his minor role in the company), the director and myself and the fellow had no option but to accept that he actually ordered those items. We had no option but to disclose what was happening to the reperesentative. He also told us that there were some of "our" orders that we paid for in cash after the credit period. Turns out the fellow could order all type of stuff in our name (on credit) and the pay later. He then got bold and started sneeking them into our orders and finally started doing 100% personal orders that we paid for!!! After getting the details of pending payments, we told the representative we will get back to him.

I had a meeting with the director and agreed we should audit all the past invoices. The audit showed that we had actually paid for so many items we had never ordered nor had got them delivered. We called the "procurement" guy for a meeting with the evidence and he accepted that he received those items separately and bla bla bla. We requested him to leave the meeting and after further discussion, we agreed he should be fired. He was to get his letter in a day or two. The next day, the director called me - and this is the shocking part - and told me he doesn't think we should fire the fellow. He told me he knows the guy is married and has kids and if we fire him, we will be punishing the wife and kids and they had done absolutely nothing wrong!!! We agreed we will pay all outstanding payments (Because they were done with our LPOs by the person who used to do procurement and the suppliers had no way of knowing they were being taken for a ride) and bill the fellow. We also totalled all the items the fellow had obtained fraudulently. We called him for a meeting and he said how much of that money he was able to pay as a lump sum in two weeks. The rest we agreed how much will be deducted from his salary till the full amount is covered. And the fellow kept his job with a warning and the procurement function transferred to someone else with stricter controls.

Unfortunately, after some time, the same fellow came up with fake LPOs in the company name, ordered for items from one of the other companies we used to deal with and we got billed. He was fired pap!!!



I have been there. Letting a driver who was lieing to me daily stay on out of empathy
and not wanting to be seen as heartless.

Same idiot caused an accident while doing his own squad in the evening. Nowadays I don't believe in second chances with employees.
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