Lessons from Satyam for India Inc by Kiran Mazumdar Shaw
Ms Shaw has written a great essay on the fiasco. Well thought out and itemized. The essay is available here But nothing new there.
She has very thoughtfully listed the systems required and the procedure to be followed by the corporates for great governance. But then Satyam had that and more. I has consistently met or exceeded all compliance requirements. It was awarded the World Council of Corporate Governance Golden Peacock Award not once but twice. But then the truth is grossly different. The award was mentioned in all the media after the fraud was disclosed. The Council is not at fault. The award is given on the basis of self declarations given by the CEO , board of directors & other C-Suite occupants.
This is a fraud of grand scale. Executed to such perfection for many years and hand in glove with the top management teams in finance, accounts , marketing and above all with one of the top 5 audit firms in the world.
Just before the disclosure by Mr Ramalinga Raju did any body have a clue of the underlying problems in Satyam. Not on earth
When a gang of more than 2 dozen very senior executives could run this scandal over 4 years with nobody deduction how do you expect a London based non statutory body to investigate the fraud. ISO gives the standards and an independent ISO auditor certifies a certain company has all the systems procedures and controls to follow the standard. Neither ISO or the auditor is responsible for the end product. Same thing here.
Satyam was stripped of the awards on 7 th Jan 09 See Here
I would say to strip off the award means WCfCG.net accepts its error. Instead the award should have been expunges or its equivalent to absolve itself of its responsibility to such fraudulent practises. Now is WCfCG going to audit all the books of future awardees ? Practical ? Or is WCfCG competent to do this.
Well. Back to Kiran's essay
She writes about all the right things good corporate governance is about. Well that is exactly what Satyam said it did. The guidelines are about how to run a honest company. Here we have a team as a whole fraudulent by thought and action. No amount of guidelines going to help if a guy and his team are hell bent on cheating.
At best lessons India Inc can learn are not to commit fraud. And if committed don't pursue it till you get caught. Anything else you meant Kiran ?
She has very thoughtfully listed the systems required and the procedure to be followed by the corporates for great governance. But then Satyam had that and more. I has consistently met or exceeded all compliance requirements. It was awarded the World Council of Corporate Governance Golden Peacock Award not once but twice. But then the truth is grossly different. The award was mentioned in all the media after the fraud was disclosed. The Council is not at fault. The award is given on the basis of self declarations given by the CEO , board of directors & other C-Suite occupants.
This is a fraud of grand scale. Executed to such perfection for many years and hand in glove with the top management teams in finance, accounts , marketing and above all with one of the top 5 audit firms in the world.
Just before the disclosure by Mr Ramalinga Raju did any body have a clue of the underlying problems in Satyam. Not on earth
When a gang of more than 2 dozen very senior executives could run this scandal over 4 years with nobody deduction how do you expect a London based non statutory body to investigate the fraud. ISO gives the standards and an independent ISO auditor certifies a certain company has all the systems procedures and controls to follow the standard. Neither ISO or the auditor is responsible for the end product. Same thing here.
Satyam was stripped of the awards on 7 th Jan 09 See Here
I would say to strip off the award means WCfCG.net accepts its error. Instead the award should have been expunges or its equivalent to absolve itself of its responsibility to such fraudulent practises. Now is WCfCG going to audit all the books of future awardees ? Practical ? Or is WCfCG competent to do this.
Well. Back to Kiran's essay
She writes about all the right things good corporate governance is about. Well that is exactly what Satyam said it did. The guidelines are about how to run a honest company. Here we have a team as a whole fraudulent by thought and action. No amount of guidelines going to help if a guy and his team are hell bent on cheating.
At best lessons India Inc can learn are not to commit fraud. And if committed don't pursue it till you get caught. Anything else you meant Kiran ?
Labels: award world council of corporate governance, golden peacock, kiran mazumdar shaw, london, Satyam, Satyam Computer Services, wcfcg
posted by YesYes at
7:56 AM
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