Ghotala.in

‘Satyam Scam Tip of Corporate Fraud Iceberg’

As more facts come to light, it becomes clear that Raju and his family have been spiriting cash out of the company since 2001, if not earlier, through an elaborate, well-ramified set of arrangements and manoeuvres, including forgery, inflating expenses, stripping assets, and manipulating income, inventory value and profits.

They have shattered the myth that the ‘free market’ policies launched in 1991, including liberalisation and deregulation, have promoted genuine competition and a clean relationship between business and government.The clients include 185 Fortune-500 corporations. Satyam specialised in engineering and product development, supply chain management, business process quality, business intelligence, enterprise integration, and infrastructure management.

‘It seems unlikely that Satyam is a unique exception, a one-off case, as is being claimed by many industrialists and chambers of commerce,’ says Jay Bhattacharjee, a highly experienced Delhi-based capital markets analyst. ‘Corporate malfeasance and outright fraud is widely prevalent in Indian industry.’

Two of accounting company’s directors have since been arrested. They failed to verify the authenticity of the bank documents pertaining to cash reserves and balances presented to them by Satyam’s management.