Tuesday, 13 January 2009
Beautiful India? Satyam, the devil is in the detail...
"It’s tempting to make that mental leap amid Satyam Computer Services Ltd.’s book-cooking scandal. Ramalinga Raju is no longer the entrepreneur who built India’s fourth-biggest software maker. He’s now allegedly the nation’s answer to Jeffrey Skilling, the former Enron Corp. chief executive officer serving a 24-year prison term.
Satyam’s crisis may be more jaw-dropping than Enron’s in 2001. It’s not just the magnitude of the scam -- 53,000 employees may lose jobs compared with 5,000 at Enron -- but the simplicity.
Enron’s fraud was conducted through a labyrinth of off- balance-sheet deals and other accounting gimmicks. Accounting firm Arthur Andersen approved the company’s financial creativity and collapsed in 2002. Enron didn’t make it easy for the auditor.
Satyam’s con was impossibly transparent: The Hyderabad-based company said it had $1 billion in the bank that it didn’t."
Greed and corruption has no borders. I think this could be the worse event that India has ever known in term of social, political and economical implication in the past two decades.