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Posts Tagged ‘Moral Hazard’

It’s other people’s money, so spend it?

In Corporate governance on 17/01/2012 at 7:21 am

“SSA president Chng Seng Mok hopes the shooters’ poor form will not affect their application into the OPP’s [Olympic Pathway Programme's] 2016 cycle, but he said: “Of course, the SSA must also explain why they didn’t do well.””

Well the shooters were good in the 2010 Commonwealth Games, winning five gold, four silver and five bronze medals to finish as the third best team in the shooting competition in New Delhi. Their form has dropped since then. And two of the three shooters in the OPP’s 2012, have failed to qualify. A third has one more chance (Let’s wish her all the best). The trio performed poorly at the 2010 Asian Games and last year’s SEA Games.

My question is, “If the SSA president was personally paying for the training expenses etc of the shooters, would the president dare say such a thing?” Obviously not because the bad has to been taken with the good, with the latest scores mattering most because they are the best (if very imperfect) indicators of future form. Ask any EPL footie manager.  

Moral hazard: Ain’t only a problem with ministerial salaries, management and bankers’ excesses, and spendthrift, lying, cheating, lazy, violent Greeks. It’s present every time, when tax-payers’ monies are involved. In fact, every time other people’s monies are used.

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