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International Business extortion: hire the son of the President as a working partner?

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TOPIC: International business - bribery

Case: I am in charge of negotiating an agreement in ASIA with the state-owned electricity company to build and own a manufacuturing plant. It has been suggest that I include one of the sons of the President as a partner in the project. The son is a partner in many important companies even though I do not know of him having any business skills. The son of the president request 15% of the equity and would be willing to take out a loan from your parent for the shares. The loan would be paid down with dividends on the shares he would hold.

Question: Would you make him a partner, why or why not?

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The solution walks through a reasonable approach to the problem and states a supported conclusion at the end.

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I will first access the risk of making him a partner or not, because the son is already partner in many important companies. I will see if my company has a conflict of interest with those companies. Iif yes, I will probably not make him a partner to avoid future problems ...

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