Satyam Computer Chairman Resigns Amid Billion+ Scandal
Another day, another billion dollar scandal… seems like the U.S. doesn’t have a lock on major scandals these days (what with the Madoff scandal)... As reported by Bloomberg’s Harichandan Arakali in Satyam Chairman Resigns After Falsifying Accounts this afternoon:
"Satyam Computer Services chairman Satyam Computer Services Ltd. Chairman Ramalinga Raju resigned after saying he falsified earnings and assets, prompting a collapse in the stock of India’s fourth-largest software-services provider….
Of Satyam’s reported cash and bank balances of 53.61 billion rupees [over $1 billion) on Sept. 30, 50.4 billion rupees was non- existent, Raju said in [a] letter sent to the Bombay Stock Exchange [and Satyam’s board]…. 'What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years,' Raju said. 'It was like riding a tiger, not knowing how to get off without being eaten.'"
The Satyam scandal is already being referred to by some as "India's Enron." Read more here.