Voltium, Inc. - Teaching Note

The case discusses a decision that needs to be made by Daniel Ragot, a manager for the company Voltium in an African country. Ragot must decide how to respond to a request from a senior official with the local body that is responsible for approving the electrical installations Voltium is building. The case describes the system of local government - in which traditional authorities are intermixed with official forces, a frequent reality in many parts of the African continent today - and Ragot's relationship with the "traditional king" of the area, who is a relative of the aforementioned official. The case also details the economic impact that delaying the completion of the project will have for the company, the impact on potential future projects, the local benefits, and the consequences for Ragot himself. Voltium is finishing its rural electrification efforts in the Dambo region, a project worth ?4.5 million. When it comes time to obtain the final permits so the project can be completed, Ragot's local advisor for the project, Bana, tells him that they will need to give a certain amount of money to Amadou Yaya (an official with the National Electrification Society, who has trained as an electrical engineer at a European university and is the king's brother) before they can obtain the permits. Should Ragot pay? How should he go about it? Under what circumstances would the payment be licit? And if Ragot does not pay, what can he do to ensure the project is completed?