The FT carries articles on the Satyam scandal in India. This link is to one of those articles. Satyam is being termed India’s Enron. It brings into question the role of PwC Satyam’s long time auditor. Major Fortune 500 companies were clients of Satyam.
Apart from governance issues and the strong possibility that Satyam may not survive, there will undoubtedly be fallout for other Indian firms, plus possibly log-term impact on the whole offshoring sector.
It highlights once again the governance issues that arise if problems arise at the top of a company.