PwC Auditors Arrested In Satyam Fraud Inquiry

theodp writes "Indian police arrested two employees from the affiliate of PricewaterhouseCoopers who audited Satyam Computer Services, the IT outsourcing giant at the center of the nation's largest fraud inquiry. The move comes after Satyam founder Ramalinga Raju said he had fabricated $1 billion of assets and confessed to making up more than 10,000 employees to siphon money from the software company. State Farm Insurance has severed its ties with Satyam, citing uncertainty about the company's future as 'the only factor responsible for the termination of the contract,' which will reportedly affect at least 400 on-site Satyam employees. Other customers, including GE, are standing by Satyam, one of the top recipients of H-1B and L visas (so much for those $500 Fraud Prevention and Detection fees!)."

Comments

Re:Great, more fuel to the flames

[wintermute000]

They may be grunt workers but are they really, when they earn 20x the wage of a factory worked (anecdotally told to me by my Indian colleagues when I was in Bangalore 2 years ago).

Good points about the sociological aspect, another thing I noticed immediately is that Indian IT is drawn from their upper class twit population i.e. those with enough money to have learnt English. I think that this, combined with the effects of the class system (ooh VIctorian England would be proud) to produce a perfect storm of mismatched expectations and outcomes.

Of course the bean counters are always quick to calculate a cost saving via lower prices but they never ever seem to have any way of figuring out how much cost is being incurred due to this lack of competency and accompanied operational disruption. Not to mention the lack of plan B, as now all your good local staff have left or been given the arse. Heck if I was an Indian outsourcer that would be my exact ploy - rope 'em in, then once I got them by the balls, slowly start squeezing... how can anybody not see that one coming.

Re:Great, more fuel to the flames

[JAlexoi]

IT in India is the same joke as in all other countries, just it's a really, really, bloated joke.
Being a techie, is not something you learn at a later stage in your life, it's something you grow up to be. Most Indian IT workers, just don't "cut it".

Unknown India

[mahadiga]

Only 15% of one billion Indians are earning more than $2 a day.
And they prefer to evade Taxes.
No Taxes means no Civilization.
And One Indian does not want fellow Indian to succeed.
Bribe or Caste is the only professional relation between any two individuals in India (politicians, business men, govt officials, judiciary etc).
Source of revenue for govt is corporate taxes.
Source of funds for political parties is corporate bribes.