Friday, January 9, 2009

Is Mr Ramalinga Raju being given his due ?

All through this blog I want the reader to understand that I do regard that the revelations made by Mr Raju are extremely shocking and shameful. However, I through this blog want to look beyond the most superficial layer and understand the human being before we brand him “FRAUD”. The issue is not as simple as identifying black from white. There are a lot of things that need to be assimilated before jumping to conclusions.

I would like people to understand that the mess that has been uncovered by Mr Raju is not his responsibility alone. It is a collective failure of the team of management that comprises of the Board of Directors and the Senior Management; and the Auditors from PWC. Then why is Mr Raju alone being made the scapegoat?

There are 2 sets of people I am completely not comfortable trusting when it comes to disemmenating information to the general public:
1. Media
2. Politicians

Let me explain why:

Media - I was watching a news channel and was thoroughly annoyed on seeing pictures of Mr Ramalinga Raju crossed over in bright red with FRAUD written in striking bold. This is a very cheap methodology that sadly the Media all over the world ,more so in India is practicing. In their attempt to sensationalize news they resort to techniques that play with the minds of the audiences. The images and stereotypes are brought down to such low IQ levels that people who don’t even know Mr. Ramalinga Raju or Satyam still manage to absorb them. In these times of gossip loving, where idiotic shows like “Big Boss” are the best shows on TV ,criticizing and ridiculing a man of Mr Raju's cadre sells like hot property. This ideally shouldnt be the way the issue is dealt.

Politicians – If there is one political party that has benefitted from Satyam it has to be the TDP. Mr Raju and the ex chief minister N Chandra Babu Naidu were the ones that were responsible for giving the CYBERABAD picture to Hyderabad and sadly there is a news item in which Chandra Babu Naidu says that the Satyam scam was known to the existing Congress Government. The newbie from Praja Rajyam Mr Chiranjeevi says Congress Government is responsible for the fiasco. Every politician pitching in is just in it for mudslinging and gaining political mileage in the process.

Let me remind all these easily forgettable idiots the good that this man has done.
1. Satyam was founded in the year 1987 at a time when many people didn’t know what a computer is, and it now employs 53000 thereby providing them livelihood.
2. The Cyberabad alias for Hyderabad is most often attributed to N Chandra Babu Naidu, with this man's significance always being underplayed. His office was one of the first one's in the Hi-Tec City and so were the contracts.
3. Satyam has started a 108, 104 ambulance operation across 8 states 24x7x365 with the support of the respective governments.
4. If you sit on the Seshadri train from Bangalore to Kakinada you’ll pass through a town by the name “Bhimavaram” in West Godavari district that raised to prominence because of the Byrraju family though not Mr Raju alone.
5. The Byrraju foundation under Mr Raju has ensured that there is a continous water supply in the West Godavari district.

The list is not endless for sure but it runs beyond the number of times the politicians and the media must have thought about the common folk.

The whole plea of mine behind stating all these facts is that the issue is being blown out of proportion by the media and all irrelevant people are trying to take advantage of the situation. There are procedures that the situation demands like putting Mr Raju through a perfect trial but besmirching him is certainly not what he deserves.

I agree that people like Mr Narayana Murthy, Azim Premji , Dhirubhai Ambani are people who brought fame to the country but let me remind you that Mr Raju belongs to that elite list. Satyam is the 4th biggest IT company in India in which IT forms a major contributor to the GDP.

Finally I end requesting everybody to form an impression of him only after understanding him and the fiasco completely.

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PS : As is the case generally I'd like to dedicate this blog ,this time to my younger brother's gtalk status message that read -

The man made a mistake but let’s not forget he has given life to close to 53,000 employees and their families, he made a mistake but he did'nt do it just for his own sake.
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7 comments:

Anonymous said...

These are times of instant gratification and one fault on the part of a person of Mr. Raju's status can wash away all the good work that he has done. I do not entirely know about the reasons that led to such a scenario but I do know that the man must be regarded for his integrity and courage.

Pavan K Pandrangi said...

Dude, I have a soft corner for the man! I concur that nothing needs to be taken at face value.

1. Still when he said, 'It was like riding a tiger and not knowing how to get off without being eaten', it was surely the emotion for his baby that has overcome anything else..even rationality. He just did not want to lose it!

2. Deep down somewhere, I also feel that his confessional statement is perhaps more the responsibility he is trying to own up (rather paying the price) for the sheer failure of the his team which precisely comprises of each and every one of those 53000 employees plus the other stakeholders. What else can explain a 3% margin when the industry operates at 20-30% range?

Giving him the benefit of doubt for the time being, he is perhaps saving a lot of careers, families and an institution that has been his life. I somehow see an entrepreneur's passion overwhelming the entrepreneur himself in a society and era where being corrupt has become a synonym of street-smartness.

Lets see how the drama unravels via the media amidst the political games.

APARNA said...

There was a quote used in Spiderman 2, "With great power comes great responsibility."

Mr.Raju, with all due respects, is no exception to this. It may take a lifetime for one to earn a good name, but to get a black mark, it takes just a few seconds. Yes, Mr. Raju as an individual, or as a member of the Byrraju family, or as the head of the Satyam family, indeed has done a lot towards the society. But also, we have to consider the fact, that almost all IT companies are running CSR (Corporate Social responsibility) cells. I don't mean his value add should go unnoticed, but end of the day, what floats over the matter is the point that, in spite of all this value add, he did give up on his values, of which he had preached once upon a time(the ideology tagged to the naming of the company as 'Satyam' meaning truth)

But yes, the essence of that quote doesn't have to be limited to him. I feel responsibility should be associated to every person of the various segments of people mentioned in this blog. Responsibility of that person who has given employment to those 53000 people, the board and senior management, the finance wing, the internal auditors (Satyam has or rather had a very appreciative auditing and quality department), the PWC auditors who claim to have 3 invincible levels of filters, the media and of course the politicians. Agreed, that all these people have to be reminded of their sensitivities. But above all, there lies a major group which not only has the power to do great things, but also has the responsibility to be sensitive as well as sensible. It's that very own general public we are talking about, the audience, including us. Why should media and politicians be blamed of misleading the public. If someone says in this context " Children are like wet cement. Whatever falls on them makes an impression. ..." How long will the public remain kids, or is it that they just don't want to grow up. Why should someone else be blamed always for feeding the public with news and views. And who forms that media & parties, who is voting for them, who is encouraging them. It is the very public. It is a two way thing, we get what we sow. If media is doing it all for TRP ratings, who is increasing these ratings ..... if politicians are being corrupt, and irresponsible, then it is we who have chosen them to guide us.

We need them, we need the media and the politicians..... Every coin has two sides to it .... Everything is a double edged sword .. it depends on you whether you use it to cut the apple or cut the finger.....


Also, just to add some inetersting info regarding the quote with which I started, this quote has been bantered about in different variations. And the answer that comes nearest to being believable is that the source for this quote is from a speech that FDR was going to deliver at the Jefferson Day Dinner in 1945; he died the day before: "Today we have learned in the agony of war that great power involves great responsibility." (From Nothing to Fear, ed. by Ben D. Zevin, p. 464 of the 1961 Popular Library paperback; the book was originally published in 1946 by the World Publishing Company.)"

Surya Prakash Jayanti said...

I agree with your point Media and Politicians in India can not be trusted. But, 108 is not a free service from Satyam, Bill Gates gave 3,000 Crores for that project and out of that 2,000 Crores gone missing.

Views of Ex-employee and financially lost Share holder
-Surya Prakash jayanti
http://jnsuryaprakash.blogspot.com/2009/01/rise-and-fall-of-satyam.html

Unknown said...

Just for your reference:

1. Satyam (Raju) bought IndiaWorld (or some similar name) in 1997 for 50 times valuation and for full cash payment leading to a huge outcry from investors.

2. Again Satyam bought Satyam Enterprises (founded by Raju's brother)in 2001 or so for 1:1 share swap at the Satyam's share market value. This valued Satyam Enterprises at some millions or even billions of dollars. This led to another huge outcry from investors then.....

3. This explains why Satyam's shares are always traded at discount when other similar company shares are traded at premium.

Though i dont know the real reason behind the scam, i strongly believe that the contents of his letter that he didnt get any benifit out of the scandal aren't true. I feel he has siphoned off money to fund Maytas projects. And a 7000 cr scam for several years without any BOD or Auditors knowing it????? What we are seeing is a tip of iceberg. Let SEBI investigate it. We will know where the money went to...

Source: Financial Times Weekend Edition (Jan 10th, 2009)

Manoj said...

It's been a long while since you posted a blog entry and finally you come up with a sensible post! I totally agree with your views on the media. The media and the local political parties have done much more damage to the company's reputation than Raju...

shashankG said...

Dear sandilya...what Mr.Manoj said is correct......
hey...please update your views in your blog...they sound correct...