We did it when we were kids, and now, our kids do it - making excuses when caught with the hand i the cookie jar, or with the pants down .... !
And a lot of grown ups do it too. First they just overlook all norms of ethics and governance and then when they are caught in their web of lies and deceit they cry foul, blaming the establishment, politics, police, tax-man, competition, media and their executives (scapegoats)... whatever, but they never own up to their faults or say 'sorry'.
India now has it's fair track record - good enough to make it to the Hall of Shame / Fame with Satyam (the mother of all frauds - I mean if your parent screws you where do u complain), PwC (their complicity in the Satyam episode) and then PwC again (lying about their status about CMM certification to obtain a contract), then there was Wipro ($ 4 m embezzled due to lack of what? systems / governance etc) and now Bank of Rajasthan (Tayal family milking the bank).
I mention these incidents since they are top of my mind and may be missing some others for sure .. will appreciate any memory jogs.
A while earlier we had the classic example of PwC crying foul because they got caught telling lies - they did not have valid CMMi Level 5 certification which they did not disclose this or for that matter. Rather than apologize they went about trying to justify the non-disclosure of by them find fault in the clients process and saying that they had used this status to get other orders. Can't they learn ? When the Satyam scam broke they went about town saying their guys were clean, and now they say what they say.
Cry baby !
Well Bank of Rajasthan has the Tayal family who promoted it and the Reserve Bank of India has asked Deloitte to audit the lending policy and also the information security systems. Why should RBI direct this if something is not "very" wrong. And Mr Tayal seems to hold the MD (Mr Padmanabhan) responsible for all thats wrong with the bank just because he was appointed by RBI. Wrongdoings or losses do not happen overnight - to make a loss of Rs 44 cr there is a lot of effort needed, and it is as tough as making a rs. 44 cr profit. So now the Tayal family and friends hurt because the bank is no longer responding to their directions. Governance is nowhere in sight and another case of crying out foul... and when !! Read more about this here.
Wipro has got a good amount of flak from analyst firms
who also mention about India being perceived as a fraud haven. Now that's not a reputation I would like to live up to ! Wipro's episode with the World Bank is yet to be wiped from analyst memory. And I shall reiterate my respect for Wipro having met good people who work there and knowing the have good systems in place. Apparently someone is goofing up and even small incidents can be blown out of proportion making damage control an expensive chore. Embarrassing too !
Labels: bad governance, bank of rajasthan, fraud, PwC, RBI, unethical practices, wipro embezzlement