Jev, I do not think for a minute Im smarter than you- just more devious perhaps :). Okay...for example. So IM CEO of POH and have met a Supplier of raw materials in a 3rd world country where corruption is the norm. Said supplier offers that in return for a lengthy 5 year contract they will inflate their invoices and then divert a margin to the CEOs private offshore account. Since it is my call as CEO to sign off on the deal- the inflated invoices arrive at POH and are approved in accord with the quote supplied from Dodgy Bros Inc . This is one avenue. There are plenty more which would be difficult to detect and unravel when a corrupt supplier is involved.
These are quite normal practices in developing countries and POH has plenty of reasons to be transacting in these regions for raw materials and scientific supplies & equipment. The wonder is that our new CFO uncovered the irregularities.
POH Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
