The GR8 Indian Fraud...!

The biggest scam ever in the history of Indian economy at Satyam Computer Services took the very interior of corporate India by storm. The promoters of Satyam, led by the company's chairman, B.Ramalinga Raju, are alleged to have siphoned out a huge amount from the firm. To veil the fraud they manipulated company accounts and forged the documents to understate their liabilities. Andhra Pradesh CID even made allegations that the compay had only 40,000 employees against 53,000 it claimed to have. The remaining 13,000 was fake salary account that pocketed about Rs. 20 crores to the chairman and his associates in crime in the fraud over 5 years.
The investigations have lot more to reveal. The Satyam scam was rather an audacious and outrageous one that led the company near collapse.
The Satyam fraud shockingly points out the failure at all levels of governance to prevent the differences occuring between managers and promoters on one side and shareholdersor stakeholders on the other.Governance is meant for the security of the small and marginalshareholders. Their duties constitute to monitor the complicit activities of the pvt. joint stock companies. The ostensive fraud not only went unnoticed by the govt. auditors but was also unnoticed by the firm's auditors. This left a hole of Rs. 7,000 crores in the company accounts over the years.
The Satyam episode is not only an attribute of the individual greedbut also is the result of regulatory dilution and failure. In such a siuation instead of isolating the company steps must be taken to recur its functions and discard the possibilities of any furthe frauds.