Monday, February 09, 2009

Once Rich Becomes More Greedy?

Once a person reaches certain higher status, more options or avenues were opened to them in gaining more financial rewards or even to boost their personal egos .......... sometimes legal, sometimes illegal. Is this a myth?

It does happen to me too ...... once you have more money, your mind tends to float higher and the thoughts of wanting this and that becomes real. The 'want' overruled the 'need'.

Unfortunately, someone couldn't control that thought.

Satyam Computer Services Limited's ("Satyam"), founding Chairman, Ramalinga Raju has been implicated in a scandal where he manipulated Satyam's profits and reserves up to an amount of US$1 billion. He has quit as of now. What a letdown. After bringing Satyam (since 24 June 1987 ) to where they are right now, an intellectual person has to commit such fraud.

For what reason? To show his peers that his company is capable of generating more profits and reserves in the IT industry?

Satyam is already employing 53,000 ++ people and operating in 66 countries ...... how can those inflated profits and reserves help even more in this case?

One thing that baffles me is how did the external auditors, PricewaterhouseCoopers India, missed out or unable to detect those fraud. As a result, the India government would be investigating the auditors' duties and the directors' roles.

Whoever recommended Satyam for the 2008 Global Award for Excellence in Corporate Governance by World Council For Corporate Governance ("WCFCG") must be hitting his head against the wall. WCFGG may revoke the award (read here) amidst the fraud case.

Will Ramalinga Raju's Ernst & Young's 2007 Entrepreneur of the Year award be revoked for this fraud case? The juries in India for the award must be scratching their heads now ....... to revoke or not?

Such prestige status, all down the drain.

Reading: India IT boss quits over scandal - BBC News/Business
Tags: Satyam Computer Services Limited, Satyam, Ramalinga Raju, PricewaterhouseCoopers India, IT Industry, Ernst & Young, Ernst & Young's 2007 Entrepreneur of the Year, Corporate Governance, World Council For Corporate Governance, WCFCG, Fraud



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