Companies expanding abroad must protect employees. | San Fernando Valley Business Journal | Professional Journal archives from AllBusiness.com
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Companies expanding abroad must protect employees.

By Clayton, Thomas A.

Monday, August 29 2005
Published on AllBusiness.com

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More and more high profile kidnapping and missing person stories have permeated the news of late--not just in the Middle East and in South America, but all around the globe. High-ranking corporate officials and wealthy individuals have always been prime kidnap targets--for obvious reasons. Their abduction can lead to handsome rewards for the criminals involved.

Despite the recent flurry of high profile kidnappings in the Middle East, Latin America continues to be the scene of more than 80% of all kidnaps for ransom and Colombia is still the dubious world leader with Mexico not far behind.

Kidnaps for ransom are not the only problem in Mexico. If you take the wrong taxi (one off the street rather than one in a taxi line or a hotel taxi) you may receive a severe beating and experience repeated visits to ATMs (with the criminals using your credit card and your PIN number extracted from you in whatever manner is necessary) or even visits to your home in pursuit of money and valuables.

In Colombia, the kidnappers, who are traditionally highly-trained, well-organized pseudo-Marxist rebel groups, make no attempt to hide the fact their sole concern is profit. Recently, when a distraught family involved in a protracted hostage negotiation tried to determine the condition of the victim, they were promptly told, "We are kidnappers, not murderers!" While the incidence of kidnap for ransom is frighteningly high in Colombia, with the help of an experienced negotiator, almost all victims are able to make it home alive.

Ransom payments can vary dramatically depending on circumstances as well. In Mexico in 1994, a local billionaire was reportedly released for a ransom in the neighborhood of Euro 30M$40 million. Conversely, a recent kidnapping in Nigeria saw the victim released in exchange for a computer and a fax machine. It is common to receive demands for $1 Euro 1M tto 3M$5 million in Colombia, which is comparable to the amount typically demanded in Germany and other northern European countries (though kidnapping incidents are rare in this area. Meanwhile, in some areas, such as Iraq and the Philippines, where kidnappings for ransom are rife, it is not uncommon to receive demands in the low thousands.

But it is not only the region where you are kidnapped that will determine the level of ransom demanded, but also who you are and for whom you work. Experienced consultants know what the "market rate" is for certain categories of abductees, and plan negotiations accordingly. Certainly a company executive of a multinational corporation will bring the best rewards, be it an expatriate, business traveler, or a local high level executive or employee.

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