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It is heartening to read from this story that the Indian offshoring fundamentals are still attractive. In the Satyam story, there are many things that give cause for serious concern. The government, the regulators, the private networks and associations, and finally the press showed their helplessness (I wanted to use the word “incompetence”) during, after, and currently. None cared to verify the corporate governance and believed in the (allegedly forged) documents that were presented from time to time. Once the problem came into the open, the culprits were neither arrested nor apprehended. The government had no mechanism to take control of the company and protect the workers, the stockholders, lenders, the customers, the reputation of the IT sector, and the country’s interests. Compare this with the people involved in Enron of the past or the recent Bernard Madoff funds in the US. Involved people were placed under house arrest and the properties were frozen. Responding to such cases, the Sarbanes-Oxley (SOX) legislation was passed. In India, they are treating this case as an isolated aberration; this should be verified and validated. This company is accused of bribing UN officials. Was that the only instance or were there Indian officials and politicians in other receiving roles from this company? How does a common man regain the trust? India should set up transparent IT systems that people in India and overseas can look into and satisfy themselves that corporate accounts are truthful (Satyam).
http://www.ibef.org/artdisplay.aspx?tdy=1&art_id=21365&cat_id=60

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