Question: Question 6 (a) A chief engineer and a senior engineer were working at LO's engineering company which provided maintenance services to buildings. Apart from serving

Question 6 (a) A chief engineer and a senior

Question 6 (a) A chief engineer and a senior engineer were working at LO's engineering company which provided maintenance services to buildings. Apart from serving in the engineering company, the two engineers were in control of four shell companies. Both engineers had conspired to use false job orders and purchase requisition forms of LO's engineering company for the purported supply of materials or labour as well as bogus invoices issued by the shell companies with intent to deceive LO's engineering company LO's engineering company was deceived into paying a total of $51 million, over a span of seven years, to the four shell companies which were under the control of the two engineers. (1) What legal and/or ethical issues are associated with the above scenario? Briefly explain (2 marks) (1) How did they do it? (1 mark) (iii) Give TWO possible causes of such issues to happen. (2 marks) (iv) Suggest ONE preventive measure for this situation. (1 mark) (b) An engineer of a public body is responsible for monitoring the business transactions between the public body and its approved contractors. Besides, he also supervises the contractors performance of works. In a family gathering, the engineer learns that his brother-in-law has recently become a director of an engineering firm which is a contractor of the public body's project under his supervision. To reduce the cost of the project, without the consent of the public body, the firm adopts building materials inferior to the ones in the project specifications. Persuaded by his brother-in-law, the engineer turns a blind eye to the use of substandard materials in the project Hoping to expand the firm, the engineer's brother-in-law further requests him to render assistance in the tendering exercise of the public body's upcoming major project and agrees to offer a commission of 5% of the contract price to the engineer's wife (as a cover-up gift) in return (1) What legal and/or ethical issues are associated with the above scenario? Briefly explain. (2 marks) (1) Suppose the engineer has accepted the offer, but no commission has received yet. Did they still commit corruption? Why? (2 marks)

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