The revelation of Ramalinga Rao, Satyam’s chairman, is really shocking. Apart from causing great loss to the investor, it has shaken the public confidence in the corporate governance of business houses and, in the process, has shattered the image of Indian companies in the international market. It has proved that the audited financial statements cannot be relied upon and is signaling the arrival of a new era of auditor-management nexus hitherto restricted to politician-criminal caucus.
Terrorists kill the innocent with AK47, but these corporate terrorists possess weapons of mass destruction which brings misery to the families of thousands of unsuspecting investors. Regulatory authorities like SEBI and other government bodies will make strongly worded statements (in line with what our ministers make in the event of terrorist attacks) and, in the end, the system, which is lenient towards the wealthy, powerful and influential, will look the other way.
In my opinion, the entire Board of Directors and their accomplice, the auditor, should be tried under anti-terror laws.
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