Even though I am no die hard fan of Michael Jackson, yet I have always been fascinated by him , as he had the guts to give himself a different look altogether , than what he had been endowed with genetically, and yet managed to raise himself to the status of a demi god in the field of entertainment.
Talent apart, what Michael had in him was a quest to win over the imagination of the world by his unconventional and implanted looks, as well as by pioneering a style in his music and performances , which became a trademark on their own.
However, despite such marvellous feats in his professional life, he also managed to stun his fans across the world in equal measure, by making a complete mess of personal life, which eventually led to his untimely and tragic demise.
According to the media reports, his overdependence upon the highly potent painkillers and other such powerful drugs, ultimately proved to be his nemesis. But on a deeper reflection, it would become apparent, that the very horse named ‘success’ on which he so merrily rode upon unchallenged, and to everyone’s envy and awe, went out of control , and ultimately ‘fell from a cliff taking its rider along with it’
One wonders, was it too much for him to announce his retirement after getting more than everything in life, and then live a long life like a commoner and devote his life to some worthy social causes like AIDS, environment etc ??
Sunday, June 28, 2009
Friday, June 12, 2009
Reforms Required in our Defense Services
The crash of the Soviet origin AN 32 of the IAF has once again highlighted the grave threats to the lives of our defense personnel, who are constantly battling a formidable enemy within, in the form of either faulty or substandard equipment, or inadequate training to take on the mighty challenges in their day to day lives, while on duty.
Yes, danger or threat to lives is an inherent part of one's duty while serving in the defense forces, but then aren’t our systems, political leadership and bureaucracy aggravating the same, by not doing what is required, to lessen such dangers to a significant extent ?
Yes, an inquiry would be ordered into this incident, and the report would sooner or later join ranks with umpteen such inquiry reports, which inquired into various crashes in the past. And then it would be life as usual for all of us.
All those who lost their lives in this crash were young and promising youth of the nation, who had ambitious dreams to serve their motherland till age permitted. But tragically enough, these dreams were cut short so abruptly, leaving their bereaved families shattered for the rest of their lives.
It is high time that some reforms were initiated in the defense sector as well. Every incident, both during peace time and war, which leads to the death of any defense personnel on duty, should necessarily be followed with an inquiry commission , which should have a specific brief to suggest measures to prevent a repeat of the same in the future, besides thoroughly analyzing the cause behind the incident. The commission should submit this time bound report to the senior defense officials concerned including the chief of the staff, as well as the senior bureaucrats in the defense ministry.
Perhaps, in order to ensure that some concrete steps are taken to prevent a repeat of the same, recommendation and request for appropriate assistance from the defense minister should be put up jointly by the defense chiefs and the senior bureaucrats of the ministry. Specific recommendations should then be elevated to the cabinet level for the necessary approvals
The cabinet should also take the necessary steps on its own, by demanding a follow up action report from the defense minister on its approvals or any other serious incident such as this crash, matter which who inturn should source the same from the relevant defense chief, and so on.
Perhaps, even the Prime Minister’s office could be proactive on such matters and seek direct intervention of the defense minister to get into the details of such incidents which can have severely demoralize not only the existing serving defense personnel who may suffer from undue fear psychosis, but also from all the brilliant and promising high school students, who may be nursing ambitions to join our defense forces but would be facing stiff opposition in their families for obvious reasons
To begin with , the Prime Minister’s Office could seek a detailed report from the defense chiefs, on the issue of availability of quality spares for the equipments and weapon systems, capabilities available to ensure appropriate maintenance of the same, and available infrastructure for ensuring state of the art training of the defense personnel. This report should then be the basis for the reforms required, in the interests of our own security and of course maintaining the morale and motivation of our defense personnel at high levels, besides of course correcting the general perceptions about a career in defense forces among many parents who discourage their wards from venturing into the same.
And last but not the least, it should be the responsibility of the Defense Minister, to ensure that the past inquiry reports are not simply gathering dust, and are put to the right use by making the recommendations a part of the Standard Operating Procedures of the defense services.
Yes, danger or threat to lives is an inherent part of one's duty while serving in the defense forces, but then aren’t our systems, political leadership and bureaucracy aggravating the same, by not doing what is required, to lessen such dangers to a significant extent ?
Yes, an inquiry would be ordered into this incident, and the report would sooner or later join ranks with umpteen such inquiry reports, which inquired into various crashes in the past. And then it would be life as usual for all of us.
All those who lost their lives in this crash were young and promising youth of the nation, who had ambitious dreams to serve their motherland till age permitted. But tragically enough, these dreams were cut short so abruptly, leaving their bereaved families shattered for the rest of their lives.
It is high time that some reforms were initiated in the defense sector as well. Every incident, both during peace time and war, which leads to the death of any defense personnel on duty, should necessarily be followed with an inquiry commission , which should have a specific brief to suggest measures to prevent a repeat of the same in the future, besides thoroughly analyzing the cause behind the incident. The commission should submit this time bound report to the senior defense officials concerned including the chief of the staff, as well as the senior bureaucrats in the defense ministry.
Perhaps, in order to ensure that some concrete steps are taken to prevent a repeat of the same, recommendation and request for appropriate assistance from the defense minister should be put up jointly by the defense chiefs and the senior bureaucrats of the ministry. Specific recommendations should then be elevated to the cabinet level for the necessary approvals
The cabinet should also take the necessary steps on its own, by demanding a follow up action report from the defense minister on its approvals or any other serious incident such as this crash, matter which who inturn should source the same from the relevant defense chief, and so on.
Perhaps, even the Prime Minister’s office could be proactive on such matters and seek direct intervention of the defense minister to get into the details of such incidents which can have severely demoralize not only the existing serving defense personnel who may suffer from undue fear psychosis, but also from all the brilliant and promising high school students, who may be nursing ambitions to join our defense forces but would be facing stiff opposition in their families for obvious reasons
To begin with , the Prime Minister’s Office could seek a detailed report from the defense chiefs, on the issue of availability of quality spares for the equipments and weapon systems, capabilities available to ensure appropriate maintenance of the same, and available infrastructure for ensuring state of the art training of the defense personnel. This report should then be the basis for the reforms required, in the interests of our own security and of course maintaining the morale and motivation of our defense personnel at high levels, besides of course correcting the general perceptions about a career in defense forces among many parents who discourage their wards from venturing into the same.
And last but not the least, it should be the responsibility of the Defense Minister, to ensure that the past inquiry reports are not simply gathering dust, and are put to the right use by making the recommendations a part of the Standard Operating Procedures of the defense services.
Monday, June 1, 2009
Open Letter to Rahul Gandhi
Dear Rahul ji,
I am pleased to introduce myself as a forty five year old management professional based out of New Delhi. The historic mandate given to the Congress party in particular, and the UPA in general , is indeed a reflection of the kind of trust which we the people of India have vested upon the leadership abilities of Smt. Sonia ji, Prime Minister Manmohan Singh ji and your goodself.
At this point of time, I just can’t help but draw parallels between the overall mood of the nation in December 1984, when the Congress Party under the leadership of late Rajiv ji came to power with a highly convincing mandate, and the mood of the nation today, when we are confronted with various challenges, and have pinned up hopes upon the Congress led UPA to deliver us from the same.
There is hope, excitement, and renewed vigour, especially among the youth of the nation, about a new dawn , and a confidence to take up the challenges confronting us today.
Rahul ji, this mandate is also an indication of the kind of hope which we the people of India have placed upon the UPA government, to deliver an efficient, effective, transparent, and honest governance to the nation, without allowing anyone to exert undue pressure on the Congress party, to fulfill their selfish interests at the cost of national interests. Yes, the statesmanship skills of the Congress party would be put to test at times, as was reflected in the case of demands by the DMK, which eventually was sorted out amicably.
Going forward, the accountability of each Cabinet Minister has to be enforced in a manner similar to the one which prevails in the corporate sector. The 100 day action plan put forward by our Prime Minister, has to translate into well defined performance goals for each ministry, and the relevant Minister/s in charge , have to be held accountable for the accomplishment of the same. Anyone falling short of their respective accomplishments, need to meet the shortfalls within the next 100 days maximum , alongwith a commitment to meet new performance goals. The reasons for the shortfalls need to be investigated, and loopholes be identified and plugged permanently, to make way for the future. This could be a regular feature of the new governance practices of the present UPA government.
And yes, as our Prime Minster is committed to the effectiveness of the government, there should be zero tolerance towards constant non performers, irrespective of their overall status on the Congress party or its allies. On the other hand, those with the right attitude, and commitment to perform, should be given due encouragement by entrusting them with responsibilities, thereby grooming the leaders for tomorrow.
It would be a good idea to present a progress report to the nation every six months, via press releases, campaigning by the Congress party workers in their respective constituencies, and educating the electorate of such accomplishments on a periodic basis. By effectively doing so, much of your campaign strategy for the forthcoming assembly elections and the next general elections in 2014, would automatically be taken care of, and in way would also effectively blunt your opposition well in advance.
Rahul ji, there is no doubt about the fact that irrespective of the grand vision of the political leadership, its translation into an effective and efficient actionable programme, for the benefit of the intended beneficiaries, is possible only if the bureaucratic apparatus is highly motivated, professional in its outlook, and shares the vision of the political leadership. The practice of arbitrary transfers, encouragement of undue patronage by the bureaucrats of their political masters, are indeed major stumbling blocks in the effective realization of the vision of any political leadership. The mass transfers of the bureaucrats in UP just recently, from areas where the BSP had fared poorly in the just concluded Lok Sabha elections, is unique manifestation of the kind of rot which is being injected in our bureaucratic apparatus by some politicians, unmindful of the consequences.
Such arbitrariness on part of our political leadership has to stop. Its also high time that we introduced the much needed administrative reforms based upon the recommendations of some well known authorities on the same. Included is also a mention of the much needed Police reforms, which have been recommended in the past.
While the bureaucratic apparatus has to be subservient to the political leadership , yet there should be reasonable restrictions on the latter to prevent a virtual free for all kind of a situation, a classic example of which has been demonstrated in UP, as mentioned above.
Rahul ji, you have rightfully and deservingly earned our hope and expectations, for the future. And hence, we look forward to some innovative and path breaking actions from your end, which could motivate everyone, especially the youth of the nation, to work for a brighter tomorrow. Apart from what I have had to suggest so far, I would like to add that messages such as :
“ We have everything but time” “ Do today what can be done tomorrow, and just now what can be done today, “ “ Araam haraam hai” “ Forget talks. Show results” etc could be beamed to the nation in regular intervals, and in as many languages as possible to create the desired impact.
While the list of desirable actions could go on, I would now confine myself to just one more suggestion.
One of the pressing needs today for the nation as a whole, is to inculcate the fear of law in the right proportions. Yes our judiciary and our law enforcing agencies are doing a good job , despite their considerable limitations, yet we need to give a serious thought about reforms in our laws, our judiciary and law enforcing agencies. More specifically, there is a pressing need to prescribe harsher punishments for crimes such as - drug peddling, forgery, corporate fraud, rape, acid attacks, betraying and compromising the national interests, espionage etc.
We also need to upgrade the equipment, procedures, and morale of the police and paramilitary forces, who have often become easy targets of the naxals, terrorists, and other anti national elements. Above all , there is also a pressing need to upgrade our judicial set up to ensure speedier and relatively easier convictions.
While danger to life is apart of the job of our security agencies, yet we have to value their lives, and do everything possible to convince them that the nation cares for their precious lives and every drop of their blood. While the circumstances were totally different, yet we need to take lessons from the gruesome mutiny by Bangladesh Rifles some months ago.
God forbid, the day the realization dawns among some personnel of our law enforcing agencies that “ Why should I lay down my life? For whom and for what? “ that day we would be confronted with a challenge of unmanageable magnitude, which would take the winds off our sails.
Rahul ji, I wish you al the very best in all your efforts and vision, for a bright future ahead for our nation.
With Warm Regards
I am pleased to introduce myself as a forty five year old management professional based out of New Delhi. The historic mandate given to the Congress party in particular, and the UPA in general , is indeed a reflection of the kind of trust which we the people of India have vested upon the leadership abilities of Smt. Sonia ji, Prime Minister Manmohan Singh ji and your goodself.
At this point of time, I just can’t help but draw parallels between the overall mood of the nation in December 1984, when the Congress Party under the leadership of late Rajiv ji came to power with a highly convincing mandate, and the mood of the nation today, when we are confronted with various challenges, and have pinned up hopes upon the Congress led UPA to deliver us from the same.
There is hope, excitement, and renewed vigour, especially among the youth of the nation, about a new dawn , and a confidence to take up the challenges confronting us today.
Rahul ji, this mandate is also an indication of the kind of hope which we the people of India have placed upon the UPA government, to deliver an efficient, effective, transparent, and honest governance to the nation, without allowing anyone to exert undue pressure on the Congress party, to fulfill their selfish interests at the cost of national interests. Yes, the statesmanship skills of the Congress party would be put to test at times, as was reflected in the case of demands by the DMK, which eventually was sorted out amicably.
Going forward, the accountability of each Cabinet Minister has to be enforced in a manner similar to the one which prevails in the corporate sector. The 100 day action plan put forward by our Prime Minister, has to translate into well defined performance goals for each ministry, and the relevant Minister/s in charge , have to be held accountable for the accomplishment of the same. Anyone falling short of their respective accomplishments, need to meet the shortfalls within the next 100 days maximum , alongwith a commitment to meet new performance goals. The reasons for the shortfalls need to be investigated, and loopholes be identified and plugged permanently, to make way for the future. This could be a regular feature of the new governance practices of the present UPA government.
And yes, as our Prime Minster is committed to the effectiveness of the government, there should be zero tolerance towards constant non performers, irrespective of their overall status on the Congress party or its allies. On the other hand, those with the right attitude, and commitment to perform, should be given due encouragement by entrusting them with responsibilities, thereby grooming the leaders for tomorrow.
It would be a good idea to present a progress report to the nation every six months, via press releases, campaigning by the Congress party workers in their respective constituencies, and educating the electorate of such accomplishments on a periodic basis. By effectively doing so, much of your campaign strategy for the forthcoming assembly elections and the next general elections in 2014, would automatically be taken care of, and in way would also effectively blunt your opposition well in advance.
Rahul ji, there is no doubt about the fact that irrespective of the grand vision of the political leadership, its translation into an effective and efficient actionable programme, for the benefit of the intended beneficiaries, is possible only if the bureaucratic apparatus is highly motivated, professional in its outlook, and shares the vision of the political leadership. The practice of arbitrary transfers, encouragement of undue patronage by the bureaucrats of their political masters, are indeed major stumbling blocks in the effective realization of the vision of any political leadership. The mass transfers of the bureaucrats in UP just recently, from areas where the BSP had fared poorly in the just concluded Lok Sabha elections, is unique manifestation of the kind of rot which is being injected in our bureaucratic apparatus by some politicians, unmindful of the consequences.
Such arbitrariness on part of our political leadership has to stop. Its also high time that we introduced the much needed administrative reforms based upon the recommendations of some well known authorities on the same. Included is also a mention of the much needed Police reforms, which have been recommended in the past.
While the bureaucratic apparatus has to be subservient to the political leadership , yet there should be reasonable restrictions on the latter to prevent a virtual free for all kind of a situation, a classic example of which has been demonstrated in UP, as mentioned above.
Rahul ji, you have rightfully and deservingly earned our hope and expectations, for the future. And hence, we look forward to some innovative and path breaking actions from your end, which could motivate everyone, especially the youth of the nation, to work for a brighter tomorrow. Apart from what I have had to suggest so far, I would like to add that messages such as :
“ We have everything but time” “ Do today what can be done tomorrow, and just now what can be done today, “ “ Araam haraam hai” “ Forget talks. Show results” etc could be beamed to the nation in regular intervals, and in as many languages as possible to create the desired impact.
While the list of desirable actions could go on, I would now confine myself to just one more suggestion.
One of the pressing needs today for the nation as a whole, is to inculcate the fear of law in the right proportions. Yes our judiciary and our law enforcing agencies are doing a good job , despite their considerable limitations, yet we need to give a serious thought about reforms in our laws, our judiciary and law enforcing agencies. More specifically, there is a pressing need to prescribe harsher punishments for crimes such as - drug peddling, forgery, corporate fraud, rape, acid attacks, betraying and compromising the national interests, espionage etc.
We also need to upgrade the equipment, procedures, and morale of the police and paramilitary forces, who have often become easy targets of the naxals, terrorists, and other anti national elements. Above all , there is also a pressing need to upgrade our judicial set up to ensure speedier and relatively easier convictions.
While danger to life is apart of the job of our security agencies, yet we have to value their lives, and do everything possible to convince them that the nation cares for their precious lives and every drop of their blood. While the circumstances were totally different, yet we need to take lessons from the gruesome mutiny by Bangladesh Rifles some months ago.
God forbid, the day the realization dawns among some personnel of our law enforcing agencies that “ Why should I lay down my life? For whom and for what? “ that day we would be confronted with a challenge of unmanageable magnitude, which would take the winds off our sails.
Rahul ji, I wish you al the very best in all your efforts and vision, for a bright future ahead for our nation.
With Warm Regards
Monday, May 18, 2009
A New Dawn in Indian Politics
We the people of India, have proved to the world community that when it comes to the most prized and powerful priviledge granted to a citizen in a democracy, that is exercising the right to vote, our soundness of judgement matches the demands of our national interests.
Certainly, few could have imagined that in this hour of crisis in the world, which had had its ramifications in India as well, our electorate would unleash the most unxpected, but a highly desired revolution at the Centre, just by the click of a finger. Undoubtedly, the credit goes to the Gandhi family which has proved beyond doubt that they are the worthy inheritors of the mantle of their illustrious anscestors, and can carry their legacy forward, as well as to Prime Minister Manmohan Singh, who has silenced all his critics.
One can't forget the severe indignities heaped upon him by his principal opponents, as well as the bullying tactics so disgustingly displayed by messers Prakash Karat and company, who had held even our national interests to ransom. They have been shown their rightful place by our eledctorate. And of course, not to forget those regional chieftans, who nursed high ambitions at the centre, but could not go beyond their self interests at the cost of development, have also been shown their rightful place by the electorate.
The challenge before the UPA government now, is to rise to the occasion and fulfill the expectations of the electorate, by working ceaselessly to deliver the nation from various perils confronting us, chiefly in the wake of the severe economic crisis, and of course doing whatever possible to secure our citizens and the nation, from the various threats both within and outside our borders.
Finally, as rightly suggested by Dr. Manmohan Singh to Shri L.K. Advani, regarding a new beginning, let all the political parties , irrespective of their strength in the new Lok Sabha, come forward to work constructively in our national interests. While we the people of India do expect a responsible opposition at the parliament, we certainly do not wish to see a pathetic display of immaturity, mindless personal attacks, and an outrightly irresponsible behaviour from any of our elected representatives.
Sincerely,
Navneet Dhawan
New Delhi.
Certainly, few could have imagined that in this hour of crisis in the world, which had had its ramifications in India as well, our electorate would unleash the most unxpected, but a highly desired revolution at the Centre, just by the click of a finger. Undoubtedly, the credit goes to the Gandhi family which has proved beyond doubt that they are the worthy inheritors of the mantle of their illustrious anscestors, and can carry their legacy forward, as well as to Prime Minister Manmohan Singh, who has silenced all his critics.
One can't forget the severe indignities heaped upon him by his principal opponents, as well as the bullying tactics so disgustingly displayed by messers Prakash Karat and company, who had held even our national interests to ransom. They have been shown their rightful place by our eledctorate. And of course, not to forget those regional chieftans, who nursed high ambitions at the centre, but could not go beyond their self interests at the cost of development, have also been shown their rightful place by the electorate.
The challenge before the UPA government now, is to rise to the occasion and fulfill the expectations of the electorate, by working ceaselessly to deliver the nation from various perils confronting us, chiefly in the wake of the severe economic crisis, and of course doing whatever possible to secure our citizens and the nation, from the various threats both within and outside our borders.
Finally, as rightly suggested by Dr. Manmohan Singh to Shri L.K. Advani, regarding a new beginning, let all the political parties , irrespective of their strength in the new Lok Sabha, come forward to work constructively in our national interests. While we the people of India do expect a responsible opposition at the parliament, we certainly do not wish to see a pathetic display of immaturity, mindless personal attacks, and an outrightly irresponsible behaviour from any of our elected representatives.
Sincerely,
Navneet Dhawan
New Delhi.
Wednesday, April 15, 2009
After Satyam - The Soul Searching
Much has been written about the Satyam fiasco, and the prime focus has been on the role of the auditing firm PwC, and the former independent directors who in any organization are actually dependent upon the powers that be, that is the owners of the organization. These powers that be are the ones, who dole out such favours to these distinguished individuals by getting them on board, and by conferring the much misunderstood nomenclature of ‘independent directors’.
Now, the latest twist in this whole episode has been the sensational arrest of two senior partners of the accounting firm PwC, for their alleged role in the scandal, which quite rightly has sent shock waves in the entire auditing community.
There are two ways of looking at the aftermaths of this episode :
1. That the former founder CEO and other powers that be, had the final word in the overall affairs of the organization, and by getting various distinguished individuals as independent directors and a well known auditing firm to audit its books of accounts, these powers that be were only replicating the practise of ‘celebrity endorsements’ in a different way, to boost the overall image of their organization. Of course, as is the case with celebrity endorsements of various products and services, it is a well known fact that the involvement of such celebrities is limited to the extent of photo shoots or ad film shoots, in return for a huge sum of money.
Generally, no one expects any such celebrities to actually believe what they are saying or doing in front of the camera. Now, if such an analogy is drawn between the auditors and the independent directors with such celebrities, then one would be tempted to absolve all the former independent directors and auditors of Satyam, for their acts of omission and commission, which in a way contributed to such a disaster.
Furthermore, like any true professional who is out in the market vending his services, these former independent directors and the auditors, delivered what they were asked to deliver by those who paid a price for the same. Thus, why should they now be held accountable for what has happened ? Let’s think of it , if any product or service endorsed by a celebrity is found to be substandard or not what has been claimed by those celebrities in front of the camera, then would these brand ambassadors be held liable and taken to task, or would the powers that be of those organizations be proceeded against and dealt with appropriately under the law for fraud, perjury, or misleading the public ?
It is worthwhile to recall another scandal involving ‘Home Trade’, which was endorsed by none other than Sachin Tendulkar and Hritik Roshan. While the owner/CEO of Home Trade, Sanjay Agarwal is perhaps cooling his heels behind the bars, his brand ambassadors are busy endorsing other products and services, in return for fancy sums of money. If this is acceptable, then on what grounds have the two senior auditors of PwC been arrested ? After all, they too were simply vending their services, and had to deliver what their paymasters wanted them to deliver in exchange for the price paid to them for the same. Hypothetically, had they refused to play the ball, they would have been replaced by another ‘service vendors’ who would have merrily played along.
According to this line of thought, the two senior partners of PwC could be arrested if any only if, they had doctored the books of accounts of Satyam, by keeping messers Ramalinga Raju and company completely in dark, which as everyone knows is not the case. At the most, the auditing company PwC in general and the relevent auditors in particular should he held accountable with the loss in credibility for not upholding the high ethical standards of their profession, and presenting the books of accounts as deemed appropriate by them in utter disregard to the dictates of their clients. Of course, they should not face any criminal liability for the same,
2. The other way of looking at into this episode is that, the former independent directors of Satyam as well as the auditors were willing accomplice in a crime perpetuated by messers Ramalinga Raju and company. Thus, as in the case of a planned murder, in which the mastermind hires contract killers to carry out the job, which eventually leads to a stringent punishment for both the mastermind as well as the contract killers who were just vending their services for a fee, in this case too all the three parties, that is, messers Ramlinga Raju , former independent directors, and the auditors should be proceeded against for a criminal liability for perpetuating such fraud.
If this line of thinking is adopted, then the arrest of the two senior partners on charges of fraud (Section 420 of the IPC) and criminal conspiracy (Section 120B of the IPC) can be totally justified. But then one wonders, how come the former independent directors have been able to get away by mere criticism, instead of being proceeded against in a similar way?
Now if this line of thinking were to be carried forward and made applicable in other aspects as well, then it would mean –
a) Holding every celebrity personally liable for any misrepresentation of facts in the advertisement featuring him/her,
b) Holding him/her personally responsible for any subsequent drawback in the product/service so endorsed
c) Holding every salesman personally liable for any ‘sales talk’ done for pushing the product/service
d) Every lawyer is to be held personally liable for any act of perjury committed by his /her client in the court of law,
e) Holding every Chartered Accountant personally liable for concealing the real income of his client while preparing and filing the latter’s income tax returns. It is a common knowledge that some clients give a ball park figure to their Chartered Accountants, beyond which their tax liablity should not exceed. Those Chartered Accountants then need to work backwards,
f) And above all, holding every politician personally liable for the overall failure of his/hr political party to fulfil the various promises made in the election manifesto just before the elections.
No matter how desirable or undesirable may be the above, the feasibility of putting the same in practice is very much in doubt.
While the Satyam fiasco has certainly led to a much needed awakening in the various grey areas of our corporate sector, and would certainly lead to the much needed changes for the better in the times to come, the most crucial aspect which is being missed out is :
Can any service provider, be it a lawyer, or a chartered accountant, or even an independent director , be expected to deliver as is currently made out to be, as long as they are at the mercy of the powers that be of those organizations , which give them their bread, butter, jam, besides the a coveted status in society ?
If not, then is it fair to crucify them like this, instead of just baying for the blood of the real powers that be like messers Ramalinga Raju and company, who were the real masterminds of such crime ?
Satisfactory answers to above, would call for a lot of introspection and soul searching.
Now, the latest twist in this whole episode has been the sensational arrest of two senior partners of the accounting firm PwC, for their alleged role in the scandal, which quite rightly has sent shock waves in the entire auditing community.
There are two ways of looking at the aftermaths of this episode :
1. That the former founder CEO and other powers that be, had the final word in the overall affairs of the organization, and by getting various distinguished individuals as independent directors and a well known auditing firm to audit its books of accounts, these powers that be were only replicating the practise of ‘celebrity endorsements’ in a different way, to boost the overall image of their organization. Of course, as is the case with celebrity endorsements of various products and services, it is a well known fact that the involvement of such celebrities is limited to the extent of photo shoots or ad film shoots, in return for a huge sum of money.
Generally, no one expects any such celebrities to actually believe what they are saying or doing in front of the camera. Now, if such an analogy is drawn between the auditors and the independent directors with such celebrities, then one would be tempted to absolve all the former independent directors and auditors of Satyam, for their acts of omission and commission, which in a way contributed to such a disaster.
Furthermore, like any true professional who is out in the market vending his services, these former independent directors and the auditors, delivered what they were asked to deliver by those who paid a price for the same. Thus, why should they now be held accountable for what has happened ? Let’s think of it , if any product or service endorsed by a celebrity is found to be substandard or not what has been claimed by those celebrities in front of the camera, then would these brand ambassadors be held liable and taken to task, or would the powers that be of those organizations be proceeded against and dealt with appropriately under the law for fraud, perjury, or misleading the public ?
It is worthwhile to recall another scandal involving ‘Home Trade’, which was endorsed by none other than Sachin Tendulkar and Hritik Roshan. While the owner/CEO of Home Trade, Sanjay Agarwal is perhaps cooling his heels behind the bars, his brand ambassadors are busy endorsing other products and services, in return for fancy sums of money. If this is acceptable, then on what grounds have the two senior auditors of PwC been arrested ? After all, they too were simply vending their services, and had to deliver what their paymasters wanted them to deliver in exchange for the price paid to them for the same. Hypothetically, had they refused to play the ball, they would have been replaced by another ‘service vendors’ who would have merrily played along.
According to this line of thought, the two senior partners of PwC could be arrested if any only if, they had doctored the books of accounts of Satyam, by keeping messers Ramalinga Raju and company completely in dark, which as everyone knows is not the case. At the most, the auditing company PwC in general and the relevent auditors in particular should he held accountable with the loss in credibility for not upholding the high ethical standards of their profession, and presenting the books of accounts as deemed appropriate by them in utter disregard to the dictates of their clients. Of course, they should not face any criminal liability for the same,
2. The other way of looking at into this episode is that, the former independent directors of Satyam as well as the auditors were willing accomplice in a crime perpetuated by messers Ramalinga Raju and company. Thus, as in the case of a planned murder, in which the mastermind hires contract killers to carry out the job, which eventually leads to a stringent punishment for both the mastermind as well as the contract killers who were just vending their services for a fee, in this case too all the three parties, that is, messers Ramlinga Raju , former independent directors, and the auditors should be proceeded against for a criminal liability for perpetuating such fraud.
If this line of thinking is adopted, then the arrest of the two senior partners on charges of fraud (Section 420 of the IPC) and criminal conspiracy (Section 120B of the IPC) can be totally justified. But then one wonders, how come the former independent directors have been able to get away by mere criticism, instead of being proceeded against in a similar way?
Now if this line of thinking were to be carried forward and made applicable in other aspects as well, then it would mean –
a) Holding every celebrity personally liable for any misrepresentation of facts in the advertisement featuring him/her,
b) Holding him/her personally responsible for any subsequent drawback in the product/service so endorsed
c) Holding every salesman personally liable for any ‘sales talk’ done for pushing the product/service
d) Every lawyer is to be held personally liable for any act of perjury committed by his /her client in the court of law,
e) Holding every Chartered Accountant personally liable for concealing the real income of his client while preparing and filing the latter’s income tax returns. It is a common knowledge that some clients give a ball park figure to their Chartered Accountants, beyond which their tax liablity should not exceed. Those Chartered Accountants then need to work backwards,
f) And above all, holding every politician personally liable for the overall failure of his/hr political party to fulfil the various promises made in the election manifesto just before the elections.
No matter how desirable or undesirable may be the above, the feasibility of putting the same in practice is very much in doubt.
While the Satyam fiasco has certainly led to a much needed awakening in the various grey areas of our corporate sector, and would certainly lead to the much needed changes for the better in the times to come, the most crucial aspect which is being missed out is :
Can any service provider, be it a lawyer, or a chartered accountant, or even an independent director , be expected to deliver as is currently made out to be, as long as they are at the mercy of the powers that be of those organizations , which give them their bread, butter, jam, besides the a coveted status in society ?
If not, then is it fair to crucify them like this, instead of just baying for the blood of the real powers that be like messers Ramalinga Raju and company, who were the real masterminds of such crime ?
Satisfactory answers to above, would call for a lot of introspection and soul searching.
Tuesday, July 1, 2008
Oil crisis
The doubling of crude prices to $ 140 a barrel within a year, and with no signs of easing in the near future has serious ramifications for most of the non OPEC countries, as it threatens to derail their development process
totally. Notwithstanding the pronouncements of the OPEC, regarding the expected price levels of $170 dollars or more in the near future, and its inability or otherwise to firm up an action plan to arrest the price rise, coupled with the escalting tensions between Iran and Isreal, the fact of
the matter remains that there is a reasonable level of optimism for the oil prices to cool down substantially latest by the year end.
For one, OPEC itself would stand to lose if its major customers are forced to cut down the demand of oil, and instead give a fresh impetus to the development of non conventional sources of energy in collaboraton with each other. Certainly, such kind of a development would ultimately be detrimental to OPEC itself in the long run.
And secondly, being an election year in the US, it will ensure that the oil prices are reigned sooner than expected, going by its moves to control the spectulation in oil futures at its commodity exchanges. And most
importantly, all attempts would be made to defuse the tensions with Iran, and certainly, Israel would not be allowed to launch a military offensive as it would only worsen the oil crisis, which in turn would harm the
fortunes of the Republicans in the coming elections. Witness the friendly overtures being made to North Korea by the US, as precusor for such things to come.
totally. Notwithstanding the pronouncements of the OPEC, regarding the expected price levels of $170 dollars or more in the near future, and its inability or otherwise to firm up an action plan to arrest the price rise, coupled with the escalting tensions between Iran and Isreal, the fact of
the matter remains that there is a reasonable level of optimism for the oil prices to cool down substantially latest by the year end.
For one, OPEC itself would stand to lose if its major customers are forced to cut down the demand of oil, and instead give a fresh impetus to the development of non conventional sources of energy in collaboraton with each other. Certainly, such kind of a development would ultimately be detrimental to OPEC itself in the long run.
And secondly, being an election year in the US, it will ensure that the oil prices are reigned sooner than expected, going by its moves to control the spectulation in oil futures at its commodity exchanges. And most
importantly, all attempts would be made to defuse the tensions with Iran, and certainly, Israel would not be allowed to launch a military offensive as it would only worsen the oil crisis, which in turn would harm the
fortunes of the Republicans in the coming elections. Witness the friendly overtures being made to North Korea by the US, as precusor for such things to come.
Sunday, June 8, 2008
Are Indian Communists Really Patriotic ?
In his article "Red Star Over South Bloc" in Times of India dated 9th June, Mr. G. Parthasarthy has excellently portrayed the antinational character of our communists, who have virtually held the UPA government to ransom, besides of course doing an excellent job as the unofficial representative of China, in the Indian establishment. While of late there have been other distinguished writers such as K. Subrahmayam etc., who have very convincingly argued through such columns in Times of India, about the necessity of concluding the Indo-US Nuclear deal, and ignoring all those who are hell bent upon sabotaging our national interests just to please their masters in China, the sad part is that the UPA itself is yet to muster that courage to go ahead and bite the bullet.
Well, given a choice PM Manmohan Singh would like call the bluff of the communists, but the real tragedy is that, he does not have the support of his allies who perhaps do not wish to face the elections earlier than scheduled, thus harming their selfish interests, and in the process to hell with our national interests anyway.
Who could miss the irony of Indian politics, when before the Karnataka election results were declared, messers Mulayam Singh and company began cosying up to the Congress, and even hinted at supporting the nuclear dewal, but after the results were announced, they did a U turn and went back to the communists to 'kiss and make up'?
Thus, God forbid, it would not be unrealistic to imagine that the next government the centre may also have the blessings of our communists, notwitstanding their patriotic credentials.
Navneet Dhawan
New Delhi
Well, given a choice PM Manmohan Singh would like call the bluff of the communists, but the real tragedy is that, he does not have the support of his allies who perhaps do not wish to face the elections earlier than scheduled, thus harming their selfish interests, and in the process to hell with our national interests anyway.
Who could miss the irony of Indian politics, when before the Karnataka election results were declared, messers Mulayam Singh and company began cosying up to the Congress, and even hinted at supporting the nuclear dewal, but after the results were announced, they did a U turn and went back to the communists to 'kiss and make up'?
Thus, God forbid, it would not be unrealistic to imagine that the next government the centre may also have the blessings of our communists, notwitstanding their patriotic credentials.
Navneet Dhawan
New Delhi
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