Satyam Scandal :: Ramalinga Raju is not the Problem

By Saswat Pattanayak

When Enron conveniently declared its bankruptcy in 2001, it not only resulted in rendering more than 5000 employees jobless, and relegating more than $1billion in employee retirement funds to vacuum, but the corporation also succeeded in eventually evading recovery of more than $40 billion of its assets. Enron’s corruption was neither pathbreaking nor unique. Financial bunglings are necessary features of market capitalism resulting in widespread unemployment, continuation of class society and dependence of world majority on the corporate minority.

All criticisms being hurled at Ramalinga Raju – the disgraced former boss of India’s leading software giant Satyam – is pure travesty. The fact is Raju is merely unlucky, and in this present instance, a victim of his beleaguered conscience that arose too late. For, his scandal is neither as consequential as Enron’s, nor as dangerously implicit as PricewaterhouseCoopers.

Any focus on eliminating Raju and his business from the world capitalistic map only shall help strengthen the businesses of his former rivals. Reducing India’s largest financial scam to the alter of accusations against one man merely shall undermine the necessity to examine the canons of capitalism.

Raju’s attempts at salvaging his son’s companies have nothing to do with personal corruption scandals. It has to do with the very nature of how “free market” capitalism works. The same investors who objected to the $1.6 billion scam orchestrated by Raju were the ones who have been supporting him throughout the series of deception, fraud and financial misappropriations committed by Satyam over the years. The same auditors – PricewaterhouseCoopers – who have suddenly hogged the headline for the wrongdoings have been heralded by Market Capitalism as one of its most informed wings. The corporate media conglomerates that are now singling out Raju as the fraud that deserves jail term are the gatekeepers of news and opinion that had been awarding Raju variously, including as “Corporate Citizen of the Year” (by CNBC in 2002). Not just the endorsement of PricewaterhouseCoopers, even its rival – the other big financial auditor – Ernst & Young has only recently bestowed upon Raju the award of “Young Entrepreneur of the Year (in 2007).

If the world has been forced to embrace market capitalism as the dominant economic base, the superstructure for such foundation has comprised investors, auditors, deregulators, and the corporate bosses. In case of Satyam Computers Services, all these elements have been exposed threadbare. And this is hardly the first instance of corruption in capitalism. Quite the contrary, corruption is inherent in capitalism, in its essence of profit drives at the cost of ethical responsibilities, in its essence of satisfying investors at the cost of customers, in its essence of exploiting workforce at the cost of amassing disproportionate wealth.

The market economy approach which India has embraced necessarily must produce Harshad Mehtas and Ramalinga Rajus. Any elements of surprise speaks to the lack of confidence in understanding of capitalism’s contradictions. A free-for-all umbrella must cloud the levels of competition and turn them instead into monopolistic collaborations among giants. Giants who must exhibit their capability to stay in top (or, perish) must necessarily employ unlawful, illicit and unethical means to hoodwink the consumers, clients and society at large.

What Raju has resorted to is not a sign of failure in his conscience. Rather, what most of the media are perceiving in his character of late is a failure on their part to understand how capitalism functions. This is what Fidel Castro calls “Economic Illiteracy” prevailing in the present age.

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Author: Saswat Pattanayak

Journalist, Generalist, Atheist, Poet, Lover, Photographer, Communist, Third wave Feminist, LGBT ally, Black power comrade, Peacenik, Anti-capitalist, Critical media theorist, Radical film critic, Academic non-elite…

5 thoughts on “Satyam Scandal :: Ramalinga Raju is not the Problem

  1. I do not see what is ill luck or conscience got to do with Raju’s so-called ‘confession’. I am not inclined to believe that Raju has finally realized his sins and errors and taking the full rap for the fiasco. The (2) billion dollar question is why this confession now? Is there something behind his taking the full credit (pun unintended) for the fraud?

    And about his almost single-handed effort, do read my post http://badrirag.wordpress.com/2009/01/08/one-two-man-fraud/

  2. Right on! And that’s the reason why its important to indicate the components-of/potentials-for financial frauds to take place as a necessary consequence of market capitalism. Private auditors, profiteering CEOs, opportunistic investors and corporate clients remain buddies for mutual benefits.

    Raju is a consequence of culture of capitalistic corruption, not an inventor of the same. But being a collaborator in perpetuating this consequence, he must face legal actions along with the entire team of accomplices (the senior level management as well as the multinational auditors) – that is, if the laws of our lands were ever enacted to pursue battle against the rich class.

  3. Raju is unlucky because the couple of hundreds of fortune 500 clients of his are not facing the media wrath now. Nor are the renowned auditors.
    When I said conscience, of course I was saying with a pinch of irony.
    Whether or not he has realized his sins and errors are outside the argument I am making because I merely see Raju as an element of capitalistic culture that must produce corrupt bosses as him unworthy of the riches. Just as it must produce other bosses of private corporations who earn in millions, but as yet been declaring their innocence.
    Its not about a man who has been “caught”. Its about a system that has been normalized as ideal which in reality must and does produce thieves.

  4. For all the fraud happenning at satyam for the past few years the ultimate blame goes to Chairman/CEO of the company. Agreed there are working soldiers in it but the sole responsibility is on the Chairman/CEO!!

    There’s a saying “One who got caught is a THIEF and one doesn’t Maharaja or whatever? “

  5. Firstly we had to appreciate raju for he had agreed for the fraud he /his company had been practicing for years:

    Most of us or corporate Heads do practice wrong financial results with the expertise services of the Auditors and Financial Advisors.

    Even a common man in India ( Including Me & you ) at most of the times file or state wrongly for even a mere driving license or voters id card or IT returns or etc.

    This is because of the system Corruption and administrative corruption such issues arise.

    Please do understand that such wrong statements are made either to evade tax or to gain high valued orders or to raise the stock value or as the main to show off false profits and image for social benefits.

    My dear friends let us consider the facts now leaving the Satyam issue and lets see what corporate culture is:

    Can the Government or Media raise their Hands over the correctness of their statements?

    Is it not that our Indian Prime Minister who is stated as the most Honest person had claimed falsely that he is a resident of far east state.

    How Honest are our administrators and Politicians.

    Dear Brothers – RELIANCE GROUP IF SCRUTINISED SHALL BE MAJOR FRAUDSTER GROUP OF THE WORLD

    HOW DID RELIANCE GET THE BASE AT KG BASIN OF ANDHRA PRADESH. IT IS A COMPLETE PROPERTY OF ONGC AND FEW EMPLOYEES HAD DRAFTED THE PLAN TO ALLOCATE THE PORT TO RELIANCE.

    FIRST LET US ALL STOP FLODDING ON FEW SHORT TERM BENEFITS

    JAI JAGAT

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