Mumbai: Describing the Satyam episode as a “blot” on India’s corporate image, Prime Minister Manmohan Singh on Saturday said the government is determined to get to the bottom of the fraud and punish the guilty.
Asking the industry to prevent fraudulent activities, he said India Inc should come out stronger from the Satyam fraud by keeping a close watch on their systems.
“Satyam episode is a blot on our corporate image. It indicates how far malfeasance in one company can inflict suffering on many and can also tarnish India’s image,” Singh said at the Economic Times Awards function here.
He said the government is determined to “unravel the full nature of the fraud and punish those who are involved...”
Acting swiftly after Satyam founder Ramalinga Raju admitted to cooking the company’s books, the government disbanded the Satyam board and nominated six eminent persons to the board to nurse it back to health.
Different wings, including the Serious Fraud Investigation Office and market regulator SEBI, have launched separate probes into the Satyam scandal which has brought uncertainty to the future of investors and 53,000 employees. Raju has been arrested and will spend four days in police custody starting Sunday.
Singh asked industry captains to “look closely into their operations to ensure that their systems are fully operational and fraudulent activities are effectively prevented.” He said actions of corporate leaders and management “have reputational impact much beyond the reputation of their companies.”
Singh said the industry should support the government in setting the highest standards “so that the world can say we emerge from the Satyam scandal stronger and more credible. I have no doubt we can do it and we shall do it.”