accounting system was in confusion. No uniform control system
had been established on building sites, and each individual site
manager was using his own method. There were twenty ex-
patriate staff in the company, and the management was about to
introduce more (they had advertised for a foreman carpenter in
Holland). Meanwhile the best local staff were leaving.” The com-
pany was making serious losses.

Since many N.D.C. companies have long traditions of loss-
making, and N.D.C. has used the profits on its profitable
monopoly companies to cover these losses, this situation could
have gone on for a long time without Government intervention.®

However, in August 1969 N.D.C. was split up and MECCO
now came under the Ministry of Lands, Housing and Urban
Development. There was now no source of funds which could be
used to cover the losses, so the company became dependent on its
overdraft at the National Bank of Commerce, and it soon became
clear to the Bank that this overdraft was rapidly growing.

In November 1969, in response to pressure from the Ministry
of Lands, measures of economy were taken. Ten expatriates, in-
cluding the General Manager, were transferred out of the com-
pany, and replaced by five others (so at least five members of the
expatriate ‘team’ were dispenseble). Steps were taken to establish
some kind of system of cost control. The (virtually non-existent)
training programme was officially ‘suspended’ in the interests of
economy.

But the Government concern continued. Facts were uncovered
to show that although MECCO was showing losses, O.C.C., the
managing agent, was doing pretty well out of it all in Holland. In
addition to the 1 % of turnover and payment of expatriate salaries,
there was evidence of over-invoicing — i.e. goods were being pur-
chased in Holland that could have been purchased more cheaply
elsewhere. Even more serious was the ease of the contract for the
factory building for General Tyres Ltd., (an N.D.C. investment in
partnership with General Tyres of America) where 0.C.C. was
found to be using MECCO to get business for its Dutch parent
company. Several local firms had submitted tenders for the factory
buildings and MECCO’s had not been the lowest bid. However,
General Tyre had subsequently contacted O.C.C. in Holland and
suggested that they (0.C.C.) should re-design and build the factory
at a lower price. However there was a clause in the management

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