14 May After Hurricane Melisa, a Government Minister told the Permanent Secretary that he would bypass the required procurement process and order items directly
Scenario
After Hurricane Melisa, a Government Minister told the Permanent Secretary that he would bypass the required procurement process and order items directly. The Permanent Secretary also recalls the Minister suggesting at a meeting that he would “get rid of anyone who stands in his way.” Under the law, the Minister is not allowed to participate in this procurement process.
Recommended Action: What course of action do you recommend to the Permanent Secretary? (6 marks)
Case 2
Scenario
The company leased a high-value asset for a period of three years. The Managing Director has asked the Financial Controller to classify the lease as a short-term lease. He told the Financial Controller, “I did accounts, and I know you will want to record this liability as a long-term liability. That would push the company’s gearing above 60%. Just wait until next financial year, when several long-term loans will have been repaid. Do not let me down now—just find a way to make it work, and I will reward you.”
Recommended Action: What course of action do you recommend to the Financial Controller? (6 marks)
Case 3
On January 11, 2026, Michael Braithwaite joined Foam Limited as the company’s Chief Financial Officer (CFO). On Friday, January 15, 2026, he met with the Managing Director, who said, “Since the company does not provide a car for the CFO, I will arrange for the company to give you a loan to purchase a motor vehicle. Also, since I know your wife loves tennis, I will arrange for her to attend the next US Open in New York.”
What course of action do you recommend to the Chief Financial Officer? (6 marks)
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