Business Hijacking

[Justloadit]

I have become aware of this double personality a few years back, and now use this in my decision making. It is quite amazing to find the number of double personality people in your day to day trading.

One very important point that comes across as a loud ring, is the manner in which the person you are dealing with handles his staff when something goes wrong with a product/delivery/repair what ever. If he shouts at his staff upon realization of the error in your presence, then it tells you his character, that he has no respect for anyone, and is being polite with you simply because his hands are inside your pocket, relieving you of your cash, and basically blames everyone else on the planet for his short coming. Let you come back and make a complaint about the product, and you will see the true character come out, the Jekyll in Mr Hide (Pun Intended).

[desA]

^ A very interesting post, Justloadit - very astute & bang on the money!

I remember the occasion with Teabag the Welder where they were bending a finned coil for a refrigeration system. His workshop supervisor, an artisan & labourer were working on the project. It was a very difficult bend & all were trying their utmost best. When Teabag went down to the shop floor from his office, all hell broke loose. His face went beetroot in colour & he began shouting at the top of his lungs. As one point he began pulling the workpiece out of the workmens' hands & became extremely abusive. I was extremely embarrassed & headed out of the factory - assuming he was having a bad day.

This behaviour was repeated on numerous occasions with workshop staff.

Ironically this fellow is on dictaphone as attempting to defraud his insurance company out of R150k. When they declined his application, he went ballistic, shouting at his wife & threatening to go to another company. This incident occurred a few months after NewCo had been formed (more on this later) & scared me to death. This was one of the principle reasons for me beginning to become wary of the relationship.

Interestingly enough, his own son refuses to work with his father (the old bastard - he is called by the lad). Again, I discovered this after NewCo had been formed. There seems to be only so much one can find out during due diligence, it appears.

Lessons learned.

[Justloadit]

I also find that they have 2 personalities, the social one and the business one.

The social one, they seem to be the nicest people on the planet, everyone loves them and wants to be around them, they are also very caring and giving. As business people they are ruthless, and will even take the proverbial sweet from a baby. A wolf dressed in sheep's clothing. The social behavior, is used to line up new victims.

When you warn people about them, they never believe you as they have always interacted in the social circle. When they become a victim they come and tell you about it, but alas too late.

I have also found on occasions, that these people, when they have a bone to pick with you, will go to very great lengths to make your life miserable, even fabricating and using false claims to get the law involved against you.

So the moral of the story is to do your homework before getting involved. Ask questions, speak to staff, speak to clients, and spend plenty of time at the business place if at all possible to learn your next business partner.

[desA]

^ Again, an incredibly astute post. You have the person pegged, absolutely & utterly.

The problem I typically have is that I am inherently trusting, by nature. This last incident has tended to make me rather cynical towards others in the business world.

Was I coached towards destruction - absolutely! Again, major lessons learned from Teabag the Welder.

[desA]

Once the end of this expose is reached, I am considering exposing the real names of the actors in this hijacking. This may be profoundly useful to other future potential victims, of this gang.

Will think through the pro's & con's of this, before making a final decision.

[Dave A]

Once the end of this expose is reached, I am considering exposing the real names of the actors in this hijacking. This may be profoundly useful to other future potential victims, of this gang.

Will think through the pro's & con's of this, before making a final decision.

That's certainly a BIG decision and I sincerely hope you do give it some very careful thought. You may also want to read this thread relating to defamation for some possibly useful insight.

[desA]

Thanks Dave - your points are well received.

What is incredibly interesting is how business hijackers can actually do anything they feel like, but when the victim begins push-back, then he/she becomes the aggressor - the 'bad' one. My suspicion is that SA Law is not really able to properly understand (too immature) & apportion responsibility & criminality in such 'complex' matters. It is way easier to simply deal with defamation.

This too, is a tactic used by successful business hijackers in SA. It is really a deflection of blame onto other parties, instead of themselves. This too, is the mark of an abuser, oddly-enough.

Other cultures deal with hijacking matters at a very early stage through social mechanisms - generally not requiring involvement of courts. In my view, South Africa perhaps needs to step back a few steps towards tribal laws, where community responsibility is more prominent.

[desA]

Advice to the international business community
My advice to would-be international investors in SA, is that they order their affairs very, very carefully. Many SA operators are simply not trustworthy in terms of partnership, or joint-venture agreements - especially in terms of engineered products. I have observed that many so-called partners will sign an agreement, having already determined how to safely extricate themselves under protection of a devious attorney - taking full advantage of South Africa's poor legal system. Be warned!

The fact that many previous country-to-SA agreements required the SA government to underwrite/protect major investments, have lapsed, with deflection now towards the South African Courts for restitution - presents huge problems for the international party/ies. Again, be most wary! (Case in point - Switzerland-SA).

In terms of technology transfer, my advice would be to treat South Africa in similar vein to say Nigeria. Send only legacy technology, or that which has 'served its time' abroad & is towards the end of its product life cycle. Your IP is almost impossible to protect - even in South Africa. In this sense, it is similar to the rest of Africa - despite promises to the contrary by leading local IP attorneys. Your test in an SA court will generally be protracted & at great expense - with little real guarantee of success. Be warned!

[Dave A]

Des, I think you'll find getting justice can be quite a slog in near all countries that submit to the principles of "justice through courts of law" and "innocent until proven guilty". And the difficulties that are posed are not without good reason - it's to protect the innocent that are falsely accused from suffering injustice.

It's all too easy to encourage swift social justice when you feel you are wronged and you are confident you have the right people in your sights. But that same principle doesn't work well at all when somebody stands falsely accused. To my mind this means promoting the principle is... not particularly advisable.

I have to agree with you though in terms of pointing out the benefits of a "prevention is better than cure" mindset. Of course, sometimes you just can't see the problem coming.
(Which is probably why experience is such a valuable asset).

[Greig Whitton]

My advice to would-be international investors in SA, is that they order their affairs very, very carefully. Many SA operators are simply not trustworthy in terms of partnership, or joint-venture agreements - especially in terms of engineered products. I have observed that many so-called partners will sign an agreement, having already determined how to safely extricate themselves under protection of a devious attorney - taking full advantage of South Africa's poor legal system. Be warned!

On the off chance that any prospective international investors do read this thread, please consider desA's opinion in the context of his personal legal battles and subsequent disillusionment with South Africa's legal system. There are many trustworthy South African entrepreneurs and business partners who would welcome your interest in our country. Obviously there is also a corrupt, criminal element - as there is in any country - and a thorough due diligence should be conducted as normal.

Your IP is almost impossible to protect - even in South Africa.

This is factually incorrect as evident from publicly available court judgments.

Your test in an SA court will generally be protracted & at great expense - with little real guarantee of success.

Institutional justice is rarely quick, inexpensive, and guaranteed. South Africa is not unique in this respect.