Satyam turning ‘ Asatyam'
India's biggest corporate fraud came to light by the stunning confession on January 7, 09 by the disgraced founder and chairman of ‘Satyam Computer Services' indicates the reality behind many businesses. Many consider this episode -similar to the Enron in the US - has not only cheated the investors and government authorities, even defiled the name of the corporate world.
For six long years the technology giant was rising upward on inflated profits to the tune of 7,100 crore rupees. As a result of the cooked up profit, the price of Satyam shares also went up. After artificially inflating the Satyam share price, B. Ramlingam Raju and his associates sold much of their shares and made rupees 2065 crore that was used to build a real estate empire for their family.
According to investigators it seems Raju's confession is only partially true, he has siphoned off crores of rupees from Satyam. His crimes involve not only manipulation of share prices, but much more like, overstating profit, understating debts, duping investors and several state governments etc. .
Many wonder, how a company of the stature of Satyam could do this deception for so many years and no body noticed about it. That reveals the poor state of the corporate governance. It is being reported that the non-executive directors who drew lakhs of rupees per year for working for 6 days, failed to question the executive management. Satyam used them as their brand ambassadors to gain investor's confidence. The world famous auditors too who charged nearly 4 crore per year also, it seems chose to turn a blind eye.
Many suspect that the promoters chose to confess their crime only to escape the other charges pending in the US courts for forgery, fraud and breach of contract. If convicted they will have to serve at least 25 year jail term in the US, where as in India, where more than 50, 000 cases of corporate frauds are still pending in the courts, as usual they hope to escape easily!
Is there any lesson for Christians here? I am sure, much to learn:-
• Fraud will fail, today or tomorrow. Tricks do not work always. “ Be sure your sin will find you out. ” Numbers.32:23c.
• Inflating success or spirituality is futile. Never follow it, nor encourage it.
• Deception is not only indecent but self-destroying and disgraceful.
• Money and position should not force us to keep our eyes closed to such treachery.
• Need to pray sincerely with David, “Behold, You desire truth in the inward parts.” “Create in me a clean heart, O God.” Psalm.51:6a, 10a.
24/1/09
