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CPI(M) wants thorough probe into Satyam scam

Special Correspondent

KOCHI: The Communist Party of India(Marxist) central committee, currently in session here, has sought a thorough investigation into the Rs. 7,000-crore fraud by the promoters of Satyam Computers and the failure of the audit firms to unearth the fraudulent practices which have put the 53,000 employees and investors of Satyam Computers in serious trouble.

A resolution adopted by the central committee meeting said the government must take suo motu cognisance of Satyam Computers chairman B. Ramalinga Raju’s admission that the company had been manipulating its balance sheets for years to show inflated profits and lower liabilities. The directors of the company involved in the fraudulent practices as also the audit firm PricewaterhouseCoopers must also be held accountable for the ‘gigantic’ fraud and strict penal action taken against them, the resolution said.

Protect employees

The party was of the view that the most urgent step was to take measures to protect the interests of the 53,000 Satyam employees. Noting that several Central and State agencies had initiated separate investigations into the fraud, the resolution said there must be proper coordination between the different investigation teams so that all the beneficiaries of the scam were brought to book.

The Satyam fraud, the CPI(M) Central committee pointed out, had much in common with the collapse of Enron in 2001. The UPA government must learn proper lessons from this episode and desist from further emulating the failed system of the U.S. Corporate regulations should be overhauled in order to discipline big business which were taking advantage of the process of deregulation and financial liberalisation to indulge in corporate frauds, the resolution added.

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