ABSTRACT
The siphoning of state assets can also take place through leasing out or contracting their use to employees. This can take place under terms that cannot hope to cover repayments on the loans from state banks taken out to cover the original purchase. The income generated by the offshoots is then turned to the benefit of the staff of the founding unit. Supervisory authorities may decide to wink at the arrangement. As Tam (1999: 46) remarks of such practices: ‘Given the continuing strong influence of supervisory departments over [state-owned enterprise] operations (particularly decisions on major investments and managerial appointments), some form of collusion cannot reasonably be ruled out.’
