When the watchdog did not even wisper

It is a disgrace that the media (the 24 hour news channels and most of the newspapers) are sensationalizing the issue by focusing on Rajus only instead of getting into investigative mode like how he could carry on with the big scandal clandestinely for this long, who are all hand in glove with him and who could be the real or equally responsible for the crime. Let them focus on these and not in telling the food he ate, the cloths he wore, the news paper he read there in the jail. 

 

It is a mockery that the PWC claims that they have followed auditing standards.

(as seen in Reuters and some other websites). Any auditor or even his assistant can find out that the fact they see and figures that were given to them were not matching.  How come the most acclaimed, Internationally repute and one of the Big4 auditing firms(including Aurther Anderson one of big 5 before Enron episode) still maintains that they have done a fair job. Or are we going to have only Big3 after this episode?

(Auditors are called as watchdogs, hence the heading!)

 

Now everyone will conveniently try to wash their hands as if Ramalinga Raju is solely responsible for the crime, where as there are many others like PWC involved in cheating the whole world. Now focus is getting shifted to make it look like more of a politician’s scandal accusing Chandra babu naidu for giving Concessions, Land Allotment, et al and they will come out with more also. It is understandable that the CMs accommodate the flag ship, most prolific company of its state enough concessions, waivers, tax holidays to make it to perform more by expanding their operations, because it brings in economic and social benefits. It has to be recalled that IT sector all over India was having aggressive growth. He is tainted or not, but Naidu's concessions are quite understandable at that stage. Now that the congress is at the helm in the state as well as at the center, it will become even more convenient for them to direct the case in the way they wanted.

 

We have seen so many cases in the past in India and let us wish that the justice prevails at least in this case because the Indian business integrity is in question.  

 

 

Few innocent questions on Satyam's fall out

Some big bad news was always on the cards from Satyam after it failed in convincing and concluding the Maytas deal. Ramanlinga Raju's reasoning was not quite convincing and probably he would have seen the deal through had he told the real reason(pun intended) for that take over and 'diversification'. Some of the questions which every common man now has :

1. After his explicit letter acknowledging criminal offence, why cant SEBI arrest or at least detain him in India. If press reports are to be believed he had flown to US from Hyd airport(He will be received by the US police is a different matter since Satyam shares are listed in Wall Street). Why do SEBI give enough time?

2.It is not Raju alone who drafted, submitted & published Balance Sheets. There are many who would be involved in finalising the 'numbers' , chiefly its Statutory Auditors and CFO at least. Why cant they be made answerable now Why is the media is spelling only one name?

3.The publc believes only the stamp of auditors and in this case the statutory auditors are the most prolific PWC. How far thier audited results can be trusted in other cases?

4.Why cant SEBI think of halting further transactions of shares if the scrip rise or fall say beyond 10% in a particular day. This will avoid major and unexpected fluctuation in a single day. This will save the company's interests too to some extent apart from many investors.

hmm...

Like many I too wish some one takes over Satyam. Wish it shines again and regains its old glory.