AFRICA

Africa Case Studies

Central Africa Case Studies

Investigation into businessman in the DRC
Belgian businessman based in the Democratic Republic of Congo (DRC) was entering a large business deal involving financing from an international bank. The bank was aware of the businessman's reputation for being involved in corruption in the DRC's mining sector. We conducted an investigation into the businessman's reputation and the alleged corrupt activities. This provided the bank with the information required to hedge any potential risks and to comply with regulation when deciding how to structure the financing of the deal.

Country risk analysis and political stakeholder mapping
FP was asked to provide country risk analysis on a Central African country with particular emphasis on the top level of government, including the cabinet and the leadership. The purpose was twofold:

• to conduct research into the political exposure of any direct contracts with the government; and
• to understand who the real decision makers were likely to be on a specific deal the client was interested in.

The client was able to use the confidential information to develop the best approach to the government. They also used the information to help structure their agreements so as to mitigate against fraud and corruption, as well as risks associated with key stakeholders.

East Africa Case Studies

Election violence and its impact on a company's logistics
The national election in an East African state was marred by extreme violence by opposition groups who did not accept the outcome of the incumbent president's party winning. As a result, key roads and access points to the client's operations, and transport to and from the port were under threat.

FP's political intelligence and insider, on-the-ground knowledge provided the client with analysis of the groups involved, their motivations for the violence and the likelihood of it continuing or even escalating. The client was able to use this information to plan alternatives and measure the risk of their operations in the short and medium term.

Manufactured claims of business in East Africa
A European private equity firm was seeking investment opportunities in East Africa. A potential joint-venture partner based in the Middle East claimed to own businesses across the African continent and boasted of particularly strong commercial links in Ethiopia and Kenya. Its website represented its operations in the region with a picture of a flag in Ethiopia and yet an address in the Sudanese capital, Khartoum.

Targeted source enquiries revealed that the JV partner had not had any business dealings in Sudan, while a site visit established that the address was in fact a residential property. In Africa, comprehensive searches of available public records found no trace of the company or its purported business partners or executives as having been involved in any local commercial activities. This was confirmed by discreet enquiries with individuals who had had dealings with the Middle Eastern company.

West Africa Case Studies

Internal investigation into alleged theft and sexual harassment
FP was asked to discreetly investigate the theft of a highly valuable product on-site in a West African country. Not only did the client suspect the employee of stealing; there had also been an allegation of sexual harassment from a peer. FP travelled to the site, in a rural part of the country, conducted open interviews with all the senior managers and key staff, and also conduct discreet enquiries separately to understand the character of the accused individual and his reputation. In the end, FP's work was crucial in bringing the employee to book and developing a strategy to repair the reputational damage to the company by the alleged sexual harassment.

Political intelligence and analysis of state's economy
A financial institution operating in a West African country for decades was concerned about the economic direction the government was taking, particularly in relation to international donors and its fiscal stability. FP was able to use its high level political networks to gain reliable insight into the various political groups' support for the government's decisions in parliament and provide intelligence from sources on the reasoning, timing and likelihood of the action together with the alternatives that were being considered.

Southern Africa Case Studies

Pre-investment due diligence on public broadcaster
A Western entertainment company was looking to invest in a new channel together with the public broadcaster of a southern African country. They were aware of serious allegations of fraud against the broadcaster's CEO and his direct relationship with the president and the country's ruling party. FP found that although the CEO was rumoured to be involved in fraud, he was never directly accused. FP advised that the alleged fraud may impact the client in the future, however, the more urgent risk for the company was the upcoming election and the CEO's loss of political patronage - and as a result potential instability with the broadcaster's leadership as a whole.

Asset tracing of a government's assets outside of the country
A European company had completed an intensive 4-year project for the government who had refused to pay for the services despite an official contract. The company was unable to retrieve compensation through the country's local courts and were advised to look for alternative options for recourse. FP was able to investigate, using its network in-country and externally, and was able to identify the respective government's assets outside of the country. These assets were then seized and the government was taken to court in a European jurisdiction.

North Africa Case Studies

Possible divestment as a result of political instability
A client asked FP to conduct a due diligence into a potential partner and their suppliers in a North African country. While they were considering the investment, an uprising occurred in the country and the company had been targeted by opposition groups. The client was concerned about how the business would be affected by the recent dramatic changes in government and a new security regime. The client was able to use FP's information and in depth analysis to more accurately assess the risks involved in continuing with investing in the country, but also used FP's strategic intelligence and stakeholder mapping to lobby for protection and support from the right leaders in government.

Legacy agent found to have been involved in corruption
An agent that had been contracted to a multi-national client operating in a North African country had been identified as a potential compliance risk to the company as part of a review of legacy contractors, partners, suppliers and agents. FP was asked to conduct an integrity due diligence on the agent and found that the agent had a reputation for bribing local officials in the relevant licensing department for the sector in which the client was active, senior members of government and even the police. The client was able to end the business relationship with the agent when the contract had come up for renewal that same year.