Donor Rules Followed, Funds Misused: The Illusion of Compliance

Donor Rules Followed, Funds Misused: The Illusion of Compliance

Pholus Advisory | 08/27/2025 | 07:44
In complex operating environments, compliance can become a performance. Financial reports are submitted on time. Procurement procedures are formally documented. Spending appears aligned with approved budgets. And yet—funds go missing, services fall short, and outcomes deteriorate. When donor rules are followed but money is still misused, the problem is not…
The Founder Passed Due Diligence — But His Backers Didn’t

The Founder Passed Due Diligence — But His Backers Didn’t

Pholus Advisory | 08/20/2025 | 06:22
When evaluating a startup, much of the focus is placed on the founder. This is understandable. The founder sets the tone, articulates the vision, and often acts as the public face of the company. But in fragile markets or sensitive sectors, the founder is rarely acting alone. Capital often arrives…
How to Notify Stakeholders When You’ve Made the Decision to Wind Down

How to Notify Stakeholders When You’ve Made the Decision to Wind Down

Pholus Advisory | 08/13/2025 | 15:10
Deciding to wind down a project, business, or operation is difficult. Communicating that decision to stakeholders is harder. When handled poorly, these conversations cause reputational damage, emotional backlash, or even legal exposure. But when done with structure and respect, notification can preserve trust, limit risk, and allow for future engagement—even…
A Surprise Visit Isn’t About Catching People — It’s About Reestablishing Standards

A Surprise Visit Isn’t About Catching People — It’s About Reestablishing Standards

Pholus Advisory | 08/06/2025 | 15:45
Surprise visits are one of the few tools leaders can use to cut through polished updates, staged reporting, and unchallenged routines. But the objective is often misunderstood. These visits are not meant to expose individuals or punish teams. Their purpose is to reassert expectations, reestablish accountability, and observe what happens…
What to Do When You Realize a Local Partner Is Moving Dirty Money

What to Do When You Realize a Local Partner Is Moving Dirty Money

Pholus Advisory | 07/23/2025 | 14:37
Realizing that a local partner may be involved in illicit financial flows is one of the most difficult positions a project lead, donor, or investor can face. The relationship is often established. Money has already moved. Public alignment may exist. But once the red flags are confirmed—or even strongly suspected—inaction…
How to Tell If a Local Business Is Just a Shell for Moving Someone Else’s Money

How to Tell If a Local Business Is Just a Shell for Moving Someone Else’s Money

Pholus Advisory | 07/16/2025 | 13:35
Not every business is what it claims to be. Behind storefronts, digital platforms, or community ventures, some entities exist primarily to transfer, obscure, or clean money for other actors. These businesses are operational in form but hollow in function—designed less to sell a product or service and more to facilitate…
Why Your Due Diligence Might Be Setting You Up to Fail

Why Your Due Diligence Might Be Setting You Up to Fail

Pholus Advisory | 06/11/2025 | 12:36
Investors and corporate strategists treat due diligence as a shield against unpleasant surprises. Yet many reviews rely on static checklists and desk research that overlook shifting power structures, informal networks, and on-the-ground realities. When those blind spots collide with complex environments, deals stall, assets underperform, and reputations suffer. A stronger…
Document, Verify, Defer: The Immediate Steps When Authority Is in Question

Document, Verify, Defer: The Immediate Steps When Authority Is in Question

Pholus Advisory | 06/09/2025 | 12:28
In fragile markets or politically sensitive environments, the lines of authority can shift overnight. Permits are issued and revoked. New actors claim control. Field staff receive conflicting orders. In these moments, acting too quickly—or too confidently—can trigger legal exposure, political backlash, or reputational damage. A deliberate pause, not a rushed…
The Accountant Signed Off — But the Cash Was Already Gone

The Accountant Signed Off — But the Cash Was Already Gone

Pholus Advisory | 05/30/2025 | 13:18
A signed financial statement often brings comfort. To boards, donors, and investors, it signals legitimacy. But in high-risk environments—especially where informal networks and layered loyalties dominate—a clean sign-off can conceal rather than reveal. The cash may already be gone, diverted through mechanisms that remain invisible to standard reviews. When this…
The Early Warning Test: When Civil Unrest Signals a Coming Insurgency

The Early Warning Test: When Civil Unrest Signals a Coming Insurgency

Pholus Advisory | 05/24/2025 | 16:09
Not all civil unrest leads to insurgency. But all insurgencies begin with unrest that was either ignored, misread, or dismissed as temporary noise. For organizations operating in fragile environments—especially those with field teams, strategic assets, or donor-backed infrastructure—the ability to distinguish between episodic protest and pre-insurgency conditions is a governance…
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