Headline, December11, 2013

''' CORRUPTION : 

FORWARD RUNS THE WORLD '''

'' DEAR Board Members :

It is with deep regret and tremendous burden that I am carrying on my conscience that I would like to bring the following facts to your notice.''

Sent in January 2009, it was the sort of letter no company director wants to get.

In it Ramalinga Raju, boss of Satyam  -then India's fourth biggest technology firm, with a glittering list of Western clients and a cabinet full of  ''corporate governance trophies''  -confessed he had cooked the books on an epic scale,  while insisting he had not benefited personally.

Mr Raju was ''the most perfect gentleman you could ever meet,'' says a former friend. He used a beguilingly simple trick, similar to that employed by fraudsters at Parmalat, an Indian firm that blew up in 2003.

Bogus customer receipts were created. To make the balance-sheet match the  juiced-up income statements, documents showing fictitious cash balances were cooked up too. 

Mr Raju organised the firm in self-contained silos so that no one else could put two and two together.

Satyam's real profits and cash position, the letter admitted, were over 90% lower than the figures in the accounts. Within days its share price collapsed by about 90%.

Although bankruptcy was an option, India's government, showed great deftness and wisdom  -instead, choose to replace the board and took a chance that the firm could avoid receivership.

A disorderly collapse would have hurt the reputation of the entire technology industry, said Saurabh Srivastava, who co-founded Nasscom, a club of technology firms in India. Implicit state support was no doubt helpful, but this did not amount to a bail-out.

BARELY a month goes by without a new oil discovery in Africa. Only five of the continent's 55 countries are neither producing nor exploring for oil. Most places are also extracting lots lucrative minerals. A resource bonanza is in train across the country:

Generating big government revenues and real benefits for Africans. Road Networks are expanding, public services are improving. But most of this happens behind a veil of secrecy.

Money sloshes out of public scrutiny at the insistence of officials and politicians who prefer it that way.

Ordinary people can rarely find out how much goes into government kitties. That makes it easier for insiders to line their pockets. Monitoring groups say corruption has been rising. Ministerial car parks are filled with the fanciest limousines 

The challenge before the whole world is how to design systems and incorporate practices that wheedle timely data in order to hold transparent and fair accountability under the law. 

Over a decade ago. Tony Blair had a go, promoting the Extractive Industries Transparency Initiative. As many as three dozen countries, in Africa and elsewhere:

Agreed to publish details of payments from oil and mining companies, but the scheme was voluntary; the worst offenders either refused to join or dragged their feet.

America's Securities and exchange Commission has now come up with a set of rules. The  1,100  resource companies listed on American Stock Exchanges, which make up   -half the global industry by value, will be required to publish all payments to foreign governments above $100,000. 

The European union is talking of introducing similar requirements. It should do so.

I could go on and on and on and on. And many times I have felt that Corruption could  compete and win, as the oldest profession in the world. Mark the use of the word  ''profession''.

There are so many insights that it is difficult to figure out as where to begin. Take the case of Mr Raju. In his case, the best insight comes from his letter of resignation:

''It was like riding a tiger, not knowing how to get off without being eaten.''

'Mi.... Mi...What long and vicious Fangs you have Grandma?'' asked a bewildered Red Riding Hood.

The Wolf grinned in menace but for a change, remained,................... Suspiciously Quiet.

With respectful dedication to all the honest and great people in the world. See Ya all on !WOW! the World Students Society Computers-Internet-Wireless:

''' Biting Back '''

Good Night & God Bless!

SAM Daily Times - the Voice of the Voiceless