Thursday, January 8, 2009

Satyam's cook book

The books have been manipulated, fictitious cash and assets shown and liabilities understated: Rs. 7000 crore created in thin air... but all things meet their fate and here they have, in the most dramatic fashion.
Though I'd already read about it yesterday, today morning I was greeted with 12 articles on Satyam covering around 8 pages in MINT alone. 12 articles! Readers must have definitely got bored ( well I got very bored, tried to find redemption in the WSJ section).
Yet, I couldn't resist the urge to comment on it. raju1
Among the 12, there were some nice and different articles titled:
1. Satyam fraud a blow to Indian Capitalism?
2. Satyam: what next?
3. Perhaps Ramalinga Raju is lying again
4. Lessons from Satyam fraud
5. Rise and fall of Ramalinga Raju
With less than 8% stake in the company, and no stock selling in the past 8 years, it may look that Raju had no financial incentive from his well-spun fraud. But greed for money is not the only greed : his greed for power, competition, prestige (Satyam did win many accolades and awards, a few of them incidently, are being taken back by the respective organisations) may have enticed Raju to 'ride the tiger.'
A question I'd like to pose : In a company with 53,000 employees, I wonder how no one saw the fraud brewing?
It takes years to build up trust, but seconds to destroy it. Satyam's demise has taken a toll, both in financial terms, and in the destruction of the reputation of various customers, employees and board members, while painting a bad picture for India globally (and for the IT Sector).
What is left is pieces to pick up and make amends, to learn from mistakes and cash in on experience, and just hope for a better time to come.

No comments:

Post a Comment