GROUP 8

SECTION F

A REPORT ON SAS REAL

ESTATE: CASE OF TANVIR
SHAH
Submitted to
Prof. Abha Chatterjee

Table of Contents
1. Executive Summary
2. Letter of Transmittal
3. Situation Analysis
4. Problem Statement
5. Available Options
6. Criteria to Evaluate
7. Evaluate the Options
8. Recommendation
9. Action Plan and Implementation
10. Contingency Plan

Executive Summary
Haider Ali, the CEO of SAS, a real estate company in Sadiquabad is facing a dilemma that if he should
fire an employee he suspects of stealing a pre-signed cheque worth 7.5 million and encashing it or to
keep him employed for the time being and keep an eye on him by hiring an assitant. The real estate
business being a competitive one, even more so given the size of the city and the number of competitors,
Haider Ali had mainly relied on word of mouth marketing. Also, in order to train an employee in the
finance software his company uses requires technical expertise and heavy investment in time and
money. So in the light of these factors and others, the firing of Tanveer becomes an important issue as it
might negatively affect customers sentiments as he has no valid proof of Tanveer being guilty. The
various parameters on which he is weighing his options are cost involved, reputation at stake, reaction of
public and the risk of law suit. Evaluating on this basis, it is recommended not to fire Tanveer Shah
immediately and hire an assistant to work under him who can be trained in using the software as well as
made to keep an eye on him. And in case of allegations being proved against Tanveer, he should be fired.

Memo of transmittal

To: Prof. Abha Chatterjee

From: Group 8 - Section F

Subject: WAC report on SAS Real Estate case

As directed by you on 14th October, 2015 for the case SAS Real Estate: The case of Tanvir Shah, we have
prepared this report. It highlights the current situation in SAS and the various decision process involved in the
dilemma of what should be done with Tanvir Shah, of whom Haider Ali suspects as the culprit of stealing of 7.5
million dollars. After looking into the issue and this report lists some recommendations. Also, this report
suggests the possible course of action based on a few evaluation criteria.

Situation Analysis:
Haider Ali was the CEO of SAS real estate in Sadiqabad. The real estate market in that area was highly
competitive. The company had managed to establish its name in the market using personal contacts and
testimonials of the customers. SAS was involved in the development of the land in order to transform it into a
residential colony. After development, plots were sold on annual/monthly installment plans. SAS face the issue
of irregular payments from the due to the nature of business whose driving factor was personal contacts. The
company had grown rapidly and was facing serious human resources issues. Major concern was the expert who
was required to handle the accounting software program. The person who handled this program was required to
undergo one year of extensive training before he could start using the system proficiently.
A pre-signed cheque worth 7.5 million Pakistani Rupees went missing from SAS office on 3rd March, 2014. It
was an expired cheque. Same was encashed using fake ID and forged signature. CCTV images were blurred and
the person could not be identified using them. Moreover, images was such that the person had his back towards
the camera.
After consultation with the lawyer of SAS, Haider Ali filed a legal court case against the bank as it had not only
accepted the fake ID but had also failed to detect the forged signatures. Ali suspected Tanveer was the culprit as
he was the only person present in the office that day and he was the custodian of the keys of the drawer in which
the cheque was kept.
However, Tanveer Shah was the only employee who could operate the companys financial software and
replacing him will involve trainings cost which could not be afforded at this moment. Also, firing Tanveer, just
on the basis of suspicion would downgrade the reputation of the company and SAS could not risk losing
customer and trust. Tanveer on other hand could also complaint against the company for unfair dismissal which
could again impact the companys reputation. Market was very competitive and customers could easily switch
to some other company. SAS was also planning to enter its largest project till date.

Problem Statement:
What should Haider Ali , the owner of SAS do with Tanveer Shah in light of the incident involving encashing of
an expired company cheque on fake ID and signature?

Available Options:
1. Fire Tanveer Shah immediately
2. Keep a close watch on Tanveer Shah and hire an assistant under him
3. Fire Tanveer Shah only if he is proven guilty

Criteria to Evaluate:
1.
2.
3.
4.

Cost for the company

Risk of tarnishing reputation
Reaction of customers
Risk of law suit being filed against SAS

Evaluation of Options:
Option 1: Fire Tanveer Shah immediately
Being trustworthy and reliable are the basic requirements for being at the position of the Chief Accounting
Officer of a company. Circumstantial evidence raised suspicions on Shah for carrying out the fraudulent bank
transaction. However, firing Shah would result in high replacement costs for the company. Shah was the only
qualified accountant who was able to operate the accounting software used by SAS. It would be very difficult
for the company to hire a person who had the requisite financial expertise and the ability to use the software.
The company would risk losing a large building project that it had been planning to venture into. Moreover,
SAS could risk losing consumer confidence and trust if the news leaked out. There was also a possibility of
Shah filing a law suit against the company for unfair dismissal.
On the other hand, not firing Shah may lead to resentment amongst the other employees who may feel that the
company is tolerant towards such malpractices. It may also encourage them to move on the same path.
Option 2: Keep a close watch on Tanveer Shah and hire an assistant under him
Keeping a close watch on Shah instead of firing him immediately would save the company against the risk of
losing customer confidence and also the large upcoming project. Business would run smoothly as Shah is the
only one who could operate the accounting software used by SAS. Hiring an assistant under Shah would serve
the dual purpose of keeping a watch on Shah as well as training an employee who could replace Shah in the
future if need be. The company should let the investigation committee come up with sure shot evidence against
Shah before they fire him. This may also generate a positive impact on other employees as they may see it as
support provided by the company to an employee who has been working for the company since 5 years, instead
of firing him immediately on the basis of circumstantial evidence.

Option 3: Fire Tanveer Shah only if he is proven guilty

Although the circumstantial evidence suggests that Shah is guilty, the company can give him a benefit of doubt,
especially considering that he has been working with SAS for 5 years and has a clean record. He should be fired
only if proven guilty. This will enable the company to maintain its reputation in the eyes of the customers and
also enable the business to run smoothly. However, if Shah is proven guilty, it will put SAS in a difficult
situation as there will be no immediate replacement for Shah available.

Recommendation:
Keep a close watch on Tanveer Shah and hire an assistant under him
Firing Shah immediately would create a lot of problems in the company. For one, the company would risk
losing customer confidence as Shah has not been proven guilty. In turn, it could possible loose on the bid for the
upcoming project. Secondly, since Shah is the only one who could operate the accounting software, the firing
and subsequent training for the new accountant would cause Ali a setback in the business. Hence the best option
would be hire an assistant who could keep a watch on Ali. It will also provide him with immediate hands on
experience in the software which may be needed in the worst case scenario. Also, employee faith would
increase as it would show willingness on the company's side to support the employee unless and until he is
proven guilty.

Action Plan and Implementation

The first step would be to hire an assistant immediately. This would ensure that situations like these may not
happen again. Since court cases take time to come out with the decision, the company can wait for the furor to
die down. After that, the assistant must be sent for immediate training of the software. This would ensure that
two people are proficient with the software and incase of any emergency situations there is another person who
will be able to handle the accounts of the company. After the court case makes their immediate decision, the
company can take a decision whether to keep or fire Tanveer Shah.

Contingency Plan
Fire Tanveer Shah only if proven guilty
On the other hand, the company can wait till Tanveer Shah is proven guilty before taking a decision. He has
been with the company for the past 5 years and before this unfortunate event, he has been an exemplary
employee. The company can stand beside Tanveer Shah