Yes, I have decided to start tracking the lies and deceit. There is a lot happening here...
Update Jan 31, 2009
- The Enforcement Directorate is going to look at Satyam / Raju and they seem to have swung into action based on the media reports. They are to investigate money laundering and foreign exchange regulation violations. Surely
- SEBI and SFIO are yet to get to speak to Raju ! Is this surprising ? I mean like why does any company have to listen to SEBI etc if they don't even have the power to question a self confessed CEO of a listed company. And the Government does not show any will to face up to the state government either. I shall write about this in a separate blog sometime and am waiting for my blood to boil some more.
- The CID is questioning Raju and his gang. At the same time they say that the CID is not equipped (or does not have the expertise) for investigating financial frauds. Of course ! They are not financial guys so how do we expect them to get a proper act in place or how can we expect them to keep evidence that will stand up in court.
- Satyam employees are grappling with the fear of losing the money they have put up as employment bonds with the company.
- The board has yet to announce their selection of a CEO and CFO. The Board meets and the Chairman's position is rotated amongst all present.
- Maytas, run by Raju's sons is also in trouble so let's keep watching.
Jan 24, 2009
- PwC Auditors are arrested. ... Gopalakrishnan and Talluri were taken into custody. About time PwC came clean on the dubious role in the Satyam affair. I am at a loss to understand how (or why) PwC continued with Gopalakrishnan - I read about his role in Global Trust Bank and DSQ which were two big accounts that messed with public trust and money. In both cases he was censured and he is in the eye of the storm here too.
Does not look good at all for decision makers at PwC. In fact things really do not look good for PwC (?) and if it turns out well for them, we shall be looking at a system which has "well meaning" window dressing. Don't we all know it and live with it !!
- Raju continues to languish in jail and his intentions are dissected by all. All his family are being investigated and they must all be hopping mad.
Like I said earlier, it remains to be seen how far this goes and how strong is the political will to carry out the will of the law.
The score remains at 7000 odd crores and the share meltdown contributed to a loss in market cap of about 23,000 crores. Figure that out for yourself in dollars.
- L & T is running hard to get it's hands on Satyam. I don't like it because I am a marginal investor and have always liked this company. Now, as a result of their race to take over Satyam their current market price is around 690 which is bad :(
Guys you want to buy it, then identify the chunk you want. Stay away from it as a whole please.
Yes, there is iGate too and they have identified their interest in the BPO operations. That's wise and good. It's their core business and makes sense.
Jan 23, 2009
- The prosecution presented their case in court opposing Raju's bail - one of the startling disclosures they made is that the Satyam head count is not 53,000 and is overstated by about 13,000 as per the confessions they have from Raju and his ex_CFO.
Of course Raju's attorney went to town saying this is untrue and that his client has not made any confession wich is also correct since this was something disclosed by the ex-CFO Srinivas.
That gets Raju a cool Rs. 20 cr ($ 4 m) every month.
And it remains to be seen how much more is disclosed.
The fact is that Raju siphoned tons of money to buy land across the state and country. Lots of it is "benami" which means that the transaction is done by someone who is a front for the actual owner.
- I saw a some stuff where people are coming out in the media with their support for Raju saying that they owed their life to him. Well you are right in acknowledging your debt to someone, and it is your bad luck that this person is a criminal.
And please do not say that he did not kill anyone and a murderer is worse than a petty thief but remember both are criminals. And Mr R is not a petty thief, he has gypped 1.2 billion dollars (7000 crore rupees) and that is not a small number.
People in this country make 7000 rupees a month !!! and they ge by with that type of wage !
If Satyamites or Rajuites or his villagers are so highly indebted to Mr R I would not trust them in any company and they will be well placed to continue to work in the sinking / floating Satyam. And they can wait for the rising of R.
Well there are people who worship Jack the Ripper too, so this is a small deal ! What ?
- Raju's confession was a fishy one - read it closely and he is just telling you how helpless he was in the face of the tiger he spawned. When I read it I remember I had a big laugh. He glibly mentions how nice he was not to take any money and now we know he did not need to take it legitimately since he was anyway raping and milking the company at the same time.
He sounds oh so noble when he talks about not profiting but what about the land he bought and the money he gave his sons and villagers and his political / business benefactors.
Well he was a very strong force in the state and even got a Golden Peacock to prove it so does the world really believe him.
- Jail in India is a cakewalk for him and his connections seem to be helping keep him away from the Serious Fraud office. If only he can be sent to the US - "maloom padhega aatey daal ka bhav" which means he will realize the cost of cheating.
Labels: cheating, satyam