From correspondents in Andhra Pradesh, India, 09:00 PM IST
Two officials of PricewaterhouseCoopers, the firm that audited fraud-hit Satyam Computer Services' books, were arrested Saturday for their alleged role in the irregularities.
The Crime Investigation Department (CID) of the Andhra Pradesh police, probing the Rs.70 billion (Rs.7,000 crore/$1.43 billion) fraud in the IT bellwether, arrested chief relationship partner S. Gopalakrishnan and engagement leader Srinivas Taluri.
CID sources said the two had allegedly suppressed information about the inflated revenues and profits of Satyam.
They said the two would be produced before a magistrate within 24 hours.
These were the first arrests of auditors since Satyam founder B. Ramalinga Raju quit as chairman Jan 7 while admitting the massive fraud.
Ramalinga Raju, his brother and former managing director B. Rama Raju and former chief financial officer Vadlamani Srinivas were arrested earlier.
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Arthur Andersen went down along with Enron company of the United States, in the aftermath of the accounting fraud which was perpetrated by the auditing co. and Enron collusively. Similarly,in order to m meet the ends of justice, PwC must be wound up as a result of the Satyam fraud which this auditing co. was instrumental in masterminding, at the behest of Satyam' Raju. This is apart from the RI for life to be given as a deterrent to individuals in the auditing firm.
The scam is true of not only It but also of other industries in which tough competition exerts pressure on the rival cos. to hike up share prices using accounting and auditing frauds. It is going on for far too long and govt. officials are bribed and politicians who have cornered poramboke lands collude with real estate guys and bring about fund diversion from the above industries. Unless the personal accounts in the case of Satyam are probed, and not just the Satyam and allied copany accounts, by incorruptible agencies the scam will be given a decent burial with some auditors and accountants being sent to jail.
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