RBI, SEBI looking into Satyam auditors' lapses

NEW DELHI: The Government today said that accounting regulator ICAI has examined the alleged role of auditors in the Satyam scam and RBI and SEBI are looking into the issue.

Minister for Corporate Affairs Veerappa Moily, referring to the multi-crore scam in Satyam Computer Services, said the Institute of Chartered Accountants of India (ICAI) and the Ministry have examined the matter. The issue is before regulators - RBI and SEBI.

"RBI has been advised to take action against violators," Moily said, replying to a brief debate on three bills seeking to amend laws governing the professions of chartered accounts, cost and works accountants and company secretaries.

In both Satyam and Global Trust Bank cases, action against auditors, including PricewaterhouseCooper were delayed due to many court proceedings.

"There are a number of court cases. We will seriously see. In Satyam case maximum punishment was given to the CA," he said.

A massive accounting fraud in IT company Satyam Computer came to light in January 2009 after its founder B Ramalinga Raju admitted to fudging accounts for many years.

On members' concern that global audit firms come to India masquerading as consulting firms and set up surrogate companies violating law, Moily said the issue is being examined seriously.

"It is right. MNCs come as management consultants and start doing as surrogate firms...we will address the issue seriously," he said.

Source: EconomicTimes