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Govt should take over Satyam board: KPMG

January 09, 2009 17:48 IST

Leading accounting firm KPMG on Friday said the existing management of beleaguered Satyam Computer Services [Get Quote] should go and the government take control of the company board to save the image of India Inc.

"This current management needs to go because it's not possible that they are not involved in this (financial fraud). They should go, bring in an interim management quickly in place," KPMG chief operating officer Richard Rekhy said.

When asked whether he is suggesting that the government should supersede the board and take control of it, he said, "They need to. I mean this is the time because the image of the corporate India is at stake, the image of India at stake.

"Now the promoter is gone. The department of Company Affairs should come together and put an interim management," he said. He, however, said that it is a "stray incident" and does not apply to all corporates.

Rekhy also said, "If you have seen Raju's letter, he has got 185 fortune 500 companies he is servicing. That means there is a default on those clients. We need to ensure that those clients are serviced and those client can only be serviced if the business continues."

He added that the company's business should be allowed to run quickly, along with investigation, as the jobs of 50,000 employees are at stake.

Expressing doubts over the veracity of the confessional letter by Ramalinga Raju, Rekhy said that besides Raju, other people are also involved in this case as it is not easy to create fake revenue and overstate revenue.

"It is not so easy, it is a complicated and so it is not possible for Raju to think about it on his own. I am sure there would be other people involved."

When asked whether Raju might have siphoned off funds and he is now admitting to lesser crime, he said that it is quite possible but it could be known only after investigation of group companies. 

The Satyam fiasco: Complete Coverage

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