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February 04, 2009

Comments

Francine McKenna

Jim, I am a bit surprised you chose to spend so much precious space worrying about the poor PwC partners in custody. Are you sure they have no lawyers? Are you sure there is no due process? Seems to me to be a constant stream of hearings and pleas. After all, the CEO and CFO are still in custody. It may be unusual by our standards. In fact it's downright rare. But at this stage, I'm sure you'll find lots of folks in the US wishing a few more CEOs, CFOs, and auditors were sitting behind bars, examining their consciences.

Y Ramakrishna

Sir,
Your comments quoted below as follows:
""But – to be held without bail or lawyers, much less the consultation with their colleagues and their papers by which to answer charges and mount a defense, PwC’s personnel are suffering their fate in a country whose system of oversight and enforcement is immature, unpredictable and therefore extremely dangerous.

Due process of law should be expected in the official reaction to financial frauds, not the Alice-In-Wonderland policy of “sentence first – verdict afterwards.” "

are totally objectioanble. I daresay that the Indian Legal Procedure and Systems are far more stable and consistent than their counterpart in the U.S where far more Fraudsters have gone scotfree.
U.S Government is afraid of the "N" word as Paul Krugman admits. What is wrong when the Government takes over a failing bank in the interest of depositors who have a far larger stake in the Bank than the shareholders?
As far the auditors, the less said the better! There is evidence that Satyam's Promoter Group used to hold weekly meetings, in which the individuals from the "respectable firm" of PWC regularly to evolve a system of "legally stripping" the concern of its assets!
It is a good thing that the Government of India superceded the Board and imprisoned the fraudsters - including the auditors.
The independence of the auditors can only be insured by introducing a system of rotational appointment by an TOTALLY INDEPENDENT BODY like the Institute of Chartered Accountants who have nearly 45,000 members on their panel. The Companies should be compelled to contribute a certain percentage of their turnover to a Trust which the said body will be administrating and appoint auditors for fixed term - ensure a fair rotation - and make available to the public all the working papers and notes of the audit by displaying the same via their website or some similar platform

Y Ramakrishna

Sir,

I refer you to this site:

http://www.retheauditors.com/2009/01/pwc-and-satyam-another-fine-mess-youve.html

You may assess for yourself whether the auditors' (PWC's) imprisonment is justified or not

Kusum

It's funny how people can question the sincerity of others but are very confident of their own. I do not agree with Mr. Ramakrishna's views on your blog. Can we ask him where is the evidence which shows that the auditors held weekly meetings with the management for "legally stripping" of the Company. If you have it please produce the same in the court of law, if not stop spreading baseless rumors.

hypotheek calculator

I Think in view of legal system of india I agree with fact that the Satyam saga has a long and ugly ways to go.

Toshinori

No case shall lie against auditors and others so long as (ed: unless?) their criminalities are established by the investigating authorities. Now there is only a disclosure by Raju that is highly suspect. On the basis of findings made by the investigators, the Government and the shareholders can file a separate suit against Raju (for fraud, falsification of accounts and other transgressions) and auditors (for criminal dereliction of duty if not for complicity, that may or may not be established) and against the other companies in the web (for complicity in diversion of funds) for criminal misdemeanor and one against the bankers as well, for perpetuating the scam by allowing Satyam to carry on showing non-existent fixed deposits parked with them in its annual accounts.

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  • © 2007-2021 James R Peterson Special thanks: Francine McKenna. Always with love: Kat and Julie. In memory: Bob White, Stuart Kadison