Whistle-blower's tip blew Satyam fraud wide open
It was an anonymous e-mail to a board member that forced into the open the accounting fraud that nearly destroyed Satyam Computer Services, according to a 14,000-page report prepared by India's Serious Fraud Investigation Office. Satyam's chairman confessed to the fraud and announced it publicly, but it was a whistle-blower who set off events that gave him no alternative, according to the report.
According to the investigation report, the falsification of the company’s accounts began in the financial year 2001-02 after there was an informal meeting between Ramalinga Raju, his brother Rama Raju and Mr Srinivas, apart from the company’s vice-president finance G Ramakrishna. The scope of the falsification of accounts, which was around Rs 234 crore in 2001-02 ballooned to Rs 5,422 crore by 2007-08 and Rs 7,333 crore by end-September 2008, the official said.
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