Where has our honesty gone?


By

Karthikeyan Sureshbabu
Chennai
 


Prologue:

The meaning of the word - Honesty is the value of speaking truth and creating trust in minds of others. Here it means that truthfulness, sincerity, or frankness which we may have or our parents had!

Most of the dishonesty starts from irresponsibility. For example, against traffic rules, try to cheat others on queue, buying fake products, giving the fake reasons for failure, sit idle and speak personal matters at working hours, how many of us are doing our activities for 24 hrs without irresponsible, faking, cheating? Why?

Ok! You could tell that, nobody cannot be perfect! I agree!!

Then, what do you think about the following list, Tehelka scandal on 2001, Taj corridor case on 2002, Telgi scandal on 2003, Gujarat fake encounter controversy on 2007, cash for votes scandal in the federal parliament on 2008 finally It comes to IT field, Satyam fraud, the list is incomplete; I pointed out very important incidents.

Tehelka scandal:

Tehelka is an Indian weekly magazine.  The publication began in 2000 as a news website, Tehelka.com. In 2001 with an expose of match-fixing in professional cricket in India, it got public attention, but it was the defense sting, called Operation Westend that got it the international attention, which led to the resignation of Indian Defense Minister.

The minister in charge of Defense, George Fernandes of the Samata Party, resigned after the tapes were made public, but he was reinstated later. Part of the tapes show the treasurer of his party talking about accepting bribes of 1 crore or more.

Taj Corridor:

Taj Heritage Corridor case is an alleged scam wherein 2002-2003, then Chief Minister of Uttar Pradesh Mayawati was charged with corruption. The Taj Corridor project was a project to upgrade tourist facilities near the Taj Mahal implemented during her tenure as Chief Minister. The BJP government at the Centre at that time gave the Environmental Clearance required for such project near Taj Mahal. However, later on BJP backed out and then started saying that the project is not cleared by the Environment Ministry and blamed Mayawati for starting construction work near the Taj Mahal.

The total estimated cost of the project was Rs. 175 crore (US$ 44 million). It has been alleged that Mayawati has embezzled the money dedicated for this project. The project is now defunct, and plans are being made to remove the partial construction near the Taj Mahal site and replace it with a low tech forested greenbelt.

Telgi scandal:

Telgi was arrested in 1991 by Mumbai police for fraud. He began printing fake stamp paper. He appointed 300 people as agents who sold the fakes to bulk purchasers, including banks, FIs, insurance companies, and share-broking firms. His monthly profits have been estimated as being in the neighborhood of Rs 202 crore (US $20 million). The Telgi case brought corruption in the Karnataka police force to light, causing a national scandal in India.

Gujarat Fake encounter controversy:

The 2007 Gujarat Fake Encounter Controversy started when the police of Gujarat state in India admitted on March 23, 2007 to the killing of an alleged extortionist "Sohrabuddin Sheikh" in a staged gun battle encounter killings on November 26, 2005. The police at that time had claimed that the man, belonged to the Pakistan linked terrorist group Lashkar-e-Toiba and was planning to assassinate Gujarat Chief Minister Narendra Modi to avenge the death of Muslims killed in the 2002 Gujarat violence.

Cash-for-votes scandal:

It is an alleged scandal in which the United Progressive Alliance, the majority-holding parliamentary-party alliance of India, openly bribed Indian MPs in cash or currency-notes to the tune of multi-millions to survive its very first confidence vote on 22 July 2008 in the Lok Sabha after the Communist Party of India (Marxist) led Left Front withdrew support from the government over India approaching the IAEA for Indo-US nuclear deal.

Satyam Scandal:

Satyam Computer founder-chairman B. Ramalinga Raju's disclosure of committing a Rs.40-billion fraud has shocked corporate India, especially the investors and over 50,000 employees of the country's fourth largest IT services company. The corporate world was surprised when Ramalinga Raju quit after confessing to the fraud that had been going on for years.

What he did?

For the September quarter (second quarter) he reported a revenue of Rs 2,700 crore and an operating margin of Rs 649 crore (24 per cent of revenue) as against the actual revenues of Rs 2,112 crore and an actual operating margin of Rs 61 crore (3 per cent of revenues). This has resulted in artificial cash and bank balances going up by Rs 588 crore in Q2 alone.

1. The Balance Sheet carries as of September 30, 2008, and

2.  his balance sheet carried the following information on last sep, 2008,

Reasons behind: At the height of the boom, top software firms Tata Consultancy Services, Infosys Technologies, Wipro and Satyam consistently reported annual 50% increases in profits every quarter. Pressure to maintain this pace of growth, Mr. Raju tried to attract investors.

Effects

1. Global customers of Indian IT suppliers are questioning the transparency of their suppliers following this scandal

2. Satyam's fraud has created a minefield of immigration problems for its foreign national employees in the United States.

  • First, Satyam employees may not have enough time left in H1B Visa status to transfer to another employer.
  • It is possible that Satyam's I-140 petitions, whether pending or approved, will be denied or revoked for fraud.
  • The second major issue that Satyam employees will face also relates to the company's fraudulent financial documents submitted in support of I-140 petitions.

It represents as an Indian company's fraud in a global level; so easily our image could be affected.

What the govt. has to do?

Tighter rules for accounting and corporate governance, including appointment of independent directors by selection committees, and greater oversight from regulatory and government authorities.

Epilogue

We can one ask one question; It's all related to political or at corporate level? What we can do for those issues?

We have to take all these issues as awareness. We have to reduce all of the dishonesty activities at our level! We have to do our responsibility on time! Now it's the time to vote for parliament election.

Be responsible and make yourself as honesty!!!
 


Karthikeyan Sureshbabu
Chennai
 

Source: E-mail May 10, 2009

 

         

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