Enhanced due diligence on a publicly listed company and one of its directors in East Africa
Read moreNavigating reputation risks: Analysis of a central African government tender
The challenge:
Diligencia was commissioned by a long-standing client to conduct a Reputation Risk Assessment on a company recently awarded a government tender in a central Africa.
Our client asked us to perform due diligence on the tender process and investigate the award.
The solution:
Our corporate intelligence team took a multi-pronged approach to gather relevant information and insights. This included engaging with a wide range of stakeholders such as regulators, sector analysts, government departments and former employees.
Thanks to our established network of local sources within the country, we were able to conduct detailed interviews and gather reliable data on the tender process. Additionally, our team conducted extensive media and internet searches to identify any public concerns or red flags, as well as global compliance checks to screen for sanctions, adverse media, and Politically Exposed Persons (PEPs) related to the company, its owners and directors.
The result:
Our assessment began with gathering essential legal entity information about the company, including its established date, legal form, registration address and registration numbers. Media and internet searches, and global compliance checks raised no significant concerns.
However, our in-depth research revealed some important details:
- Tender process analysis:
Our search uncovered meetings held between the company and the country’s Ministry of Industry. By engaging with our local sources, we discovered that no public competitive bidding process had taken place. Instead, the procurement was conducted via a single-sourcing approach. - Assessment of the tender award:
Despite the non-competitive nature of the process, our sources confirmed that the company in question obtained the contract without engaging in bribery or yielding to undue influence from any party involved. - Transparency and compliance:
Our research found no official complaints or legal disputes concerning the tender process. Additionally, the company’s legal and regulatory compliance checks showed no evidence of unethical or illegal conduct.
In conclusion, our Reputation Risk Assessment shared with the client, revealed that while the tender process lacked transparency due to its single-sourcing nature, there were no indications of bribery, corruption or other illegal activities. The company’s actions in securing the contract did not raise significant reputational concerns.