Leading newspapers across the globe have keenly covered the fraud which is being called 'India's Enron'
Satyam founder-chairman B R Raju
Leading newspapers across the globe have keenly covered the fraud which is being called 'India's Enron'
Most of the papers the world over are unanimous in their analyses that the Satyam scandal shows poor regulatory oversight in India and calls for immediate overhaul in corporate governance.
Wall Street Journal had three reports regarding the issue. "After confessing to cooking the books at one of India's largest technology companies, B Ramalinga Raju called a friend and colleague to apologise," it said in one of its reports.
The report quoted Utla Balaji, chief executive of Health Management and Research Institute, as saying: "He said he was sorry things happened this way, and we would continue our work transforming rural India."
The Independent reported, "The revelation was au00a0 shock to followers of the company whose name means 'truth' in Sanskrit."
"The Securities and Exchange Board of India has launched a formal investigation and there could be action from the US Securities and Exchange Commission. Merrill Lynch, the group's banking adviser, immediately quit after the news," it further said.
Guardian said that Indians' faith in the family-run business has taken a beating with the Satyam fraud.
Low on ethics
A Wall Street Journal report said,u00a0 "Although some leading Indian companies have become international powerhouses in recent years, the general standard of corporate ethics and accounting haveu00a0 been poor in India."
The New York Times said, "Satyam serves as the back office for some of the largest banks, manufacturers, health care and media companies in the world, handling everything from computer systems to customer service.
In some cases, Satyam is even responsible for clients' finances and accounting."
The detailed report says that the revelations could cause "a major shake-up in India's enormous outsourcing industry." It warns that the scandal may force large companies to "investigate and revamp their back offices."
u00a0
The size of the fraud raises questions about "regulatory oversight in India."
"Satyam has been underu00a0 scrutiny in recent months, after a report in October that the company had been banned from World Bank contracts for installing spy software on some World Bank computers. Satyam denied World Bank confirmed banning the firm."
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