Satyam scam

Published : Feb 27, 2009 00:00 IST

THE Cover Story on the Satyam fraud (System failure, February 13) exposed the Himalayan proportions of the scam committed by Ramalinga Raju and his family members to defraud the nation, stakeholders and shareholders, clients and also the havoc they created in the lives of thousands of Satyam employees. The Central government must immediately nationalise both Satyam and Maytas and close down fraudulent companies.

K.P. Rajan Mumbai* * *

THE Satyam scam is one of the biggest (Rs.7,000 crore) in the Indian corporate world. The auditors of Satyam have admitted that they signed the balance sheet without proper verification.

Our laws are weak to punish erring auditors heavily. If an auditing firm fails in its duty, it must be banned from practice in the country.

M. Kumar New Delhi* * *

THE Satyam imbroglio reminds one of Warren Buffets saying: It is only when the tide goes out that you realise who has been swimming naked.

But the biggest culprit in the Satyam incident is the companys auditors.

They facilitated the fraud. We need state auditors to supervise company-appointed auditors, who are subjected to undue influence by top managements.

S. Raghunatha Prabhu Alappuzha* * *

THE Satyam scammers probably hoped for the usual system failure and a get-away in the end. But for the collaboration or at least carelessness of many, it could not have happened. So what is pertinent is to ensure that none of the culprits escapes punishment.

A. Jacob Sahayam Thiruvananthapuram* * *

SYSTEM failure was an apt legend for the Cover Story on the Satyam fraud? Frontline deserves full appreciation for its extensive analysis of the root causes of the failure. If C.P. Chandrasekhars reiteration that Satyam is not an isolated instance was convincing, the tracing of the corporate scandals in independent India by Venkitesh Ramakrishnan was striking. Jayati Ghoshs essay was brilliant too.

The issues raised clearly expose the in-built characteristics of the neoliberal policies that abet and promote such crimes. The voluntary true disclosure of violations by Ramalinga Raju seems to be an attempt to seek immunity from severe punishment under some provisions of the SEBI Act.

S. V. Venugopalan Chennai* * *

THAT the Satyam fiasco was not noticed by the market regulator SEBI is a sad commentary on the state of affairs in the country. The gross negligence of the auditors is also telling.

The Enron scam and the recent Madoff scam in the U.S. show that regulatory bodies have failed even in the citadel of capitalism.

The Satyam fiasco makes one wonder if it is an exclusive story or if there is a pattern, with many more Satyams waiting to happen.

S. Murali VelloreOil sector

THE employees of the oil industry are loyal soldiers of India too, not deshdrohis (anti-nationals) as some television channels put it (Fuelling a crisis, February 13).

They toil in conditions and locations that are harsh and dangerous, either offshore or under sea, away from their families, in the deserts of Rajasthan or in the troubled areas of the north-eastern region. At times, they even have to live without basic needs like potable water. Their toil enables the people to live in comfort using petrochemical products. Their services are so important that they cannot live in peace even for a day if the supplies are interrupted.

Let us not forget these facts when the time comes to reward the oil sector employees.

R. Tanvi ChennaiPedestrians

YOUR magazine deserves praise for highlighting the problems faced by pedestrians in Indian cities (Pedestrians in peril by Jayati Ghosh, February 13).

The civic authorities utter failure to provide comfortable and safe access to this section of road-users is deplorable.

Apart from the hurdles mentioned by the author, there are the so-called ramps in front of multi-storied apartments and commercial buildings. They are steep, making it difficult for pedestrians to negotiate them. These ramps, often running to several metres and covering the entire width of the buildings, are nothing but an encroachment on public space; regulations must be made to ensure that the walking area in front of the buildings is level with the road surface and that any slope for entry and exit of vehicles is inside the private premises.

C.G. Rishikesh ChennaiPoetry

IF poetry has become irrelevant in todays world (Tragic Irrelevance, February 13) we must also remember that this is not the era of kings and their courtiers. We like to read rubbish. Since the inception of the Nobel Prize, only ten poets have won it.

Rishi Raj Jabalpur, M.P.* * *

BHASKAR GHOSES article on poetry has come at the right time. Incomprehensible broken-down pieces of prose pass off as poetry today. Film lyrics have degenerated into bawdy lines for item numbers.

The lament about poetry dates back to the 4th century B.C when Euripides accused Aeschylus of writing stuff that were high-flown and mysterious. Aeschylus retorted by saying that the works of Euripides were poor and ordinary.

A debate on modern poetry will go a long way in restoring it to its exalted place in literature.

R.S. Pillai KollamGaza

Israels barbaric attack on Gaza is the biggest violation of international laws in recent times and is just another move to destabilise the Palestinian state (Massacre of the innocents, January 30).

The action also raises questions on the silence of the international community. India should reassess its ties with Israel.

Atul Thakur Ghaziabad, U.P.* * *

IT is greed for supremacy that divides families, religions and states (Divided brothers, Cover Story, January 30). Hamas and Fatah are solely responsible for the massacre and sufferings.

R.N. Agarwal Bikaner* * *

THE Cover Story articles on Gaza were excellent. However, the picture of the child on the cover, though it captures the horrendous and inhuman atrocities perpetrated on the Gaza Strip, is disturbing.

Vikram S. Shekhawat Jamshedpur* * *

THE picture on the cover was heartbreaking and would provoke a sense of revenge against the perpetrators of the war. The truth is that most people in Israel are also innocent.

Arun B. Ashok Thrissur, Kerala* * *

WAR is a drastic remedy and Israel has never realised the distinction between the right to make war and the proper conduct of war itself. The force used by the Israeli forces exceeded what the situation warranted.

The U.S. should desist from promoting Israel as its extended province and be a good mediator instead.

H. Syed Madani TiruchiMumbai terror

THE article Enemies within (January 30) shows that Pakistan wants to avoid addressing the central issue of terror. Pakistan is least interested in confronting the militants.

In order to face the challenge of terrorism, Pakistan must first develop a commitment to create a modern, democratic and pluralistic society.

Dr K.K. Ammannaya UdupiNREGA

Redistribution of wealth and social equity have to be ensured. Those who do not have any land are completely dependent on casual labour.

If the masses get work in the villages, they would not migrate to urban areas.

Also, migration means spending a major share of ones earnings on commuting.

T.V. Jayaprakash Palakkad, KeralaIndia & China

A.G. NOORANIS essay on the long-standing India-China border row (Strategic differences, January 2) was excellent. Contentious issues need to be resolved steadily in the interests of both the countries as well as Asia. High-level talks alone will not find a way out. A conciliatory approach is a must.

Bhaskar Pegu GuwahatiBuddhism

BENOY K. BEHLS marvellous delineation of Buddhist philosophy and practice in the five-part series was enthralling to read.

Syed Owais SrinagarProfit at any cost

THIS has reference to the Cover Story System failure. It is well-known that the objective of private/multinational companies is to get maximum profit in quick time. To achieve this, they indulge in the following practices:

1. Getting tax exemptions/subsidies from government (as in the case of Special Economic Zones), and getting favourable laws passed through lobbying.

2. Tax evasion by preparing two balance sheets one for the stakeholders and another for public consumption.

3. Disregarding the welfare of people living near their units (such as the erstwhile Union Carbide factory in Bhopal, the leather industry in Vellore district of Tamil Nadu, and the dyeing units in Tirupur, also in Tamil Nadu).

4. Exploiting workers and natural resources.5. Taking over other companies.

So whether it is in India or the United States or elsewhere, the modus operandi of private companies is the same.

M. Velmurugan Tirupati
Sign in to Unlock member-only benefits!
  • Bookmark stories to read later.
  • Comment on stories to start conversations.
  • Subscribe to our newsletters.
  • Get notified about discounts and offers to our products.
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide to our community guidelines for posting your comment