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Our Italian business has been expanding so rapidly that it has covered all her
inadequacies which are clearly shown in the standard of her reporting, even though we
have had no complaints from customers. In early June, Mr Gravotti you works for Fiat in
Gerolan, had a serious car accident and Mrs Gravotti decided to take her annual leave at
that time, even though in the roster created at the beginning of the year she had
specifically asked for leave in August.
Though this created problems we were able to cover for her in the department during this
time. On a visit to Gerolan I found that this had not been necessary as her husband was
well cared for in hospital, and then had been transferred to a Fiat nursing home to
convalesce, with a complete recovery. Recently, her son has become ill. Though her
family circumstances are such that she has the help of her mother and aunt in looking after
the child, she wanted to take two days off a week, because she had no leave entitlement
left. She offered to work over the weekend to make up the time that was lost. She claimed
that similar dispensations had been given in the UK to one of the technical support staff
whose wife had become seriously ill. Though we had given G Bernard such assistance the
case was entirely different, as there was no one at home to support him.
Her view has been that as Italian companies work over the weekends this absence would
not make any difference and that she would continue to provide emergency cover
throughout the week. This I consider unacceptable. I have issued Mrs Gravotti with a
written warning stating that should this absence from work continue we would have no
option but to dismiss her as she has failed to meet the terms of her contract.
Item two
From Axel Winger Partnership To Managing Director
CONFIDENTIAL. We have completed the initial audit of the last years figures having taken
over the work from Periccional, and have found major discrepancies that must be resolved
as quickly as possible. We must have a meeting to discuss them. Briefly, the matter
concerns a considerable number of orders to customers in South America and the Middle
East.
It would appear that many orders were priced more highly than they appear in the
company accounts. Two payments were then made for these orders, one to the overseas
client and another to a series of bank accounts in London. We have been advised by one
customer that this payment was as a split commission, half to be paid to the client
(normally the official or company manager involved in the purchase), and the other to be
paid to a member of Burke Engineering.
It would appear that these payments go back 5 years and are entirely export business,
though since the new controls on pricing were established it appears that the practice has
largely stopped, though we have identified 3 invoices that give rise to concerning the last
financial year. The sums involved have been considerable. The invoices that we have
been able to trace, amount to €1.5 million and may well be higher than that. From London,
the payments that we have been able to trace go into the Channel Islands.
I and my partners consider that this could only be achieved with the connivance of either
the Marketing and Sales Director or the Finance Director or both. As pricing of these
orders has been largely the responsibility of the Sales and Marketing Director our
investigations will need to start in that department. We advise you of this so that you can
take any action that you consider necessary.
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