Wednesday, January 14, 2009

India has a fine little corporate scandal going on!

Here are some articles about what's happening now with the Indian outsourcing giant, Satyam.

Mr Raju, the companies disgraced chairman who has an 8% stake in the company, is under heavy investigation.

The World Bank has barred the company from doing outsourced work with the bank for at least 8 years.

Here is a better Time line of the events.

It's not in depth, but it shows exactly the more salient points of this disaster.

Moreover, Mr. Raju has been "cooking the books" and creating a billion dollars worth of capital on its balance sheet, out of thin air.

The company is under government mandated auditing by Deloitte and KPMG auditors. PwC, the former auditing company, has been dismissed as obvious as it seems.

I guess the Indians are learning the free market system, well!

This is a prime example of good and relevant corporate governance models, must be implemented in the emerging economies to ward off such massive frauds such as this.
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