Swadeshi Jagaran Manch (SJM) demanded a thorough probe into the entire episode of Satyam computers scandal and urged the government to demonstrate firmness to institute an impartial inquiry and should immediately arrest the Management of PricewaterhouseCoopers (PWC), which failed as auditors and brought disrepute to the nation. The Manch also demanded to suspend Indian operations of PWC forthwith till the probe against the failure of the PWC is complete.
In a statement issued from Hyderabad Shri M. Rajamahender Reddy, Andhra Pradesh Convener, said the accounting scandal has shaken the investors? confidence in Indian stocks. ?It'sa wake-up call for India'scorporate sector as wall as Indian Corporate Regulatory Mechanism and also to the people of the country. The scandal comes at a delicate time for India'sinformation technology companies, which are struggling against a global slowdown and waning economic growth at home. What is more surprising is that such a mammoth fraud could not be noticed by any regulatory authority, or even by the auditors of the company and the people of the country were clue less till the former chairman of the company confessed the fraud,? the statement said.
Shri Reddy said it has put a question mark on the entire corporate governance system in India. PwC'srole in India'sEnron comes under the spotlight amid allegations that large Indian companies regularly use misleading accounting techniques and bully analysts, accountants and auditors into staying quiet. That the former star businessman was able to get away with such a rudimentary deception has brought into question the role of PriceWaterhouseCoopers (PwC), which audited the group'saccounts since 2000.