Pics and Picks

January 26, 2009

Thain’s excesses

Filed under: Uncategorized — Zizu @ 6:47 pm

On Jan 22nd in a Daily Beast/CNBC exclusive, Charlie Gasparino obtained documents about $1.22 million of company money that former Merrill Lynch CEO John Thain spent on his office, just as the financial crisis was hitting the firm. Thain announced his resignation this morning, less than a month after his brokerage firm was taken over by Bank of America. Below, are Thain’s top 16 outrages as reported in the Daily Beast.

1) $2,700 for six wall sconces.
2) $5,000 for a mirror in his private dining room.
3) $11,000 for fabric for a “Roman Shade.”
4) $13,000 for a chandelier in the private dining room.
5) $15,000 for a sofa.
6) $16,000 for a “custom coffee table.”
7) $18,000 for a “George IV Desk.”
8) $25,000 for a “mahogany pedestal table.”
9) $28,000 for four pairs of curtains.
10) $35,000 for something called a “commode on legs.”
11) $37,000 for six chairs in his private dining room.
12) $68,000 for a “19th Century Credenza” in his office.
13) $87,000 for a pair of guest chairs.
14) $87,000 for an area rug in Thain’s conference room and another area rug for $44,000.
15) $230,000 to his driver for one year’s work.
16) $800,000 to hire celebrity designer Michael Smith, who is currently redesigning the White House for the Obama family for just $100,000.

January 21, 2009

Obama’s speeches

Filed under: Politics — Zizu @ 4:28 am

I found it cool to see a site that listed only all of Obama’s speeches. I have picked up some real works of art from – http://obamaspeeches.com

My fellow citizens:

I stand here today humbled by the task before us, grateful for the trust you have bestowed, mindful of the sacrifices borne by our ancestors. I thank President Bush for his service to our nation, as well as the generosity and cooperation he has shown throughout this transition.

Forty-four Americans have now taken the presidential oath. The words have been spoken during rising tides of prosperity and the still waters of peace. Yet, every so often the oath is taken amidst gathering clouds and raging storms. At these moments, America has carried on not simply because of the skill or vision of those in high office, but because We the People have remained faithful to the ideals of our forbearers, and true to our founding documents.

So it has been. So it must be with this generation of Americans.

That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our health care is too costly; our schools fail too many; and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.

These are the indicators of crisis, subject to data and statistics. Less measurable but no less profound is a sapping of confidence across our land – a nagging fear that America’s decline is inevitable, and that the next generation must lower its sights.

Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America – they will be met.

On this day, (more…)

January 17, 2009

The Satyam Story – 2

Filed under: Frauds — Zizu @ 6:09 pm

The shuruwaat of the whole saga is here….

In hardly 6 days, lots more happened. First, the board was dissolved, and new directors were inducted.  First HDFC Chairman Deepak Parikh was recommended to the board. The government also appointed Kiran Karnik, a former president of the National Association of Software Services Companies outsourcing industry body, and C. Achuthan, director of the National Stock Exchange and formerly of the Securities and Exchange Board of India, the market regulator. It has also appointed Brahmayya & Co, Chartered Accountants, Chennai as internal auditors of the company, with immediate effect. Amarchand & Mangaldas & Suresh A Shroff & Co, have been appointed as legal advisors to the Board.

The Raju brothers were remanded to police custody, while news channels were swathed with people wanting their 2 minutes of fame. People came on air to describe the man’s supposed last one month prior to the scandal. While all this was happening, not wanting to be left out of the publicity, politicians began their blame game, and started blaming Chandrababu Naidu, who apparently had given his quiet complicity to all this. The government was also quick to point at the then ruling NDA government. Naidu in turn, came out and said he knew nothing of anything. Clearly!!! 🙂

And then, KPMG and Deloitte were appointed external auditors. ICAI then came out saying that KPMG could not audit Satyam, since they were not part of the ICAI! Whew.

As if this was not enough, banks came out with their take on their exposure to Satyam and Maytas. SBI, the biggest ‘loser’ per se, said that they have an exposure of almost $103 Million. ICICI’s ex-chairman, K V Kamath came on air to say that he did not think that banks had any exposure to the Satyam fiasco. Only makes one wonder how deep this toxic waste has permeated.

This is the story so far, wait on for Satyam Story – 3…

January 14, 2009

The 5 coolest places of the world – from TripAtlas.com

Filed under: Uncategorized — Zizu @ 8:49 pm

As a travel web site, TripAtlas.com is all about giving travellers all over the world fun, interesting, and news-worthy travel articles, content, photos, and features.

After articles like the Top 5 Most Expensive Pizzas in the World and How to Pee All Over the World, TripAtlas.com now brings you the 5 Coolest Places in the World.

Is it New York City? Perhaps Toronto? Hong Kong? London? Well, it’s not London, England, as cool as fish and chips, Chelsea FC and the Queen may be. It’s not Hong Kong, either, no matter how many shopping districts and diners you may find open at 4 a.m.

The coolest on place on earth, in the entire world is in fact — a desert. Huh?

1) Vostok Station and Plateau Station, Antarctica
How Cool? Vostok: -128.6°F or -89.2°C and Plateau: -119.2°F or -84°C

Antarctica is considered the coolest or coldest place on earth, inhabited only by seals, penguins and scientists for half of the year. It’s also considered a desert (the largest desert in the world!) because it has little precipitation (just less than the Sahara) — even though it’s completely covered by massive amounts of ice.

The records of the coldest temperatures in the world were taken at the Vostok and Plateau Science Laboratory Stations on Antarctica. The “coolest place” award goes to Vostok Station where the temperature reached -128.6°F or -89.2°C on July 21, 1983.

2) Oymyakon and Verkhoyansk, Russia
How Cool? Oymyakon: -96.0°F or -71.1°C and Verkhoyansk: -89.8°F or -67.7°C

Siberia is in fact the coldest inhabited place in the world. Oymyakon village found in Eastern Siberia, has a population of 900 and an average temperature of -96°F or -71.2°C during the winter that lasts nine months. This region is so cold that if you take out an empty plastic bag outside, it will freeze in minutes and shatter like glass. Children are not allowed to play outside for more than 20 minutes during a winter day — to keep their lungs from freezing!

Verkhoyansk is located near the Arctic Circle and had a population of 1,434 in 2002. They have a river port, airport and fur-collecting depot. It is also a centre for raising reindeer (for Santa, no doubt).

3) North Ice Station and Eismitte, Greenland
How Cool? North Ice: -86.8°F or -66°C and Eismitte: -84.8°F or -64.9°C

Both recording of these temperatures at North Ice Station and Eismitte were on expeditions made by European scientists and explorers in the 1930s (Eismitte) and the 1950’s (North Ice). Both were made on Greenland’s inland. At Eismitte, researchers spent a 12 month period from September 1930 to August 1931 recording temperatures. July was the warmest month at an average monthly temperature of 10°F and -12.2°C. The coldest month was February at -53°F or -47.2°C.

4) Snag in Yukon, Canada
How Cool? -81.4°F or -63°C

The small village of Snag, Yukon takes the record for the coldest temperature in North America to have ever been recorded and was February 3, 1947. The village is located just south of Beaver Creek, Yukon and is located in a valley. This village was settled during the Klondike Gold Rush in the late 1800s. In the mid 1900’s, only approximately 10 natives lived here along with fur traders.

5) Prospect Creek, Alaska, United States
How Cool? -79.8°F or -62.1°C

Prospect Creek is located just 25 miles southeast from Bettles, Alaska. It was at a pipeline camp in January 23, 1971 that this record was taken at -79.8°F or -62.1°C. It is considered the United States’ lowest recorded temperature.

How polite are we – Reader’s Digest survey of 2006

Filed under: Uncategorized — Zizu @ 2:35 am

It’s lunchtime in Mexico City and a young man follows a slim girl wearing dark glasses into a restaurant. Without looking behind her, she lets the heavy glass door swing closed, almost smashing him in the face.

In a stationery shop in Seoul meanwhile, a female customer wants to buy a disposable pen. It’s a minor purchase, but 56-year-old store owner Jang Byung-eun takes the time to talk her through a variety of different models. When she makes her purchase, he takes the time to say a friendly thank you.

A chill wind is blowing on a late-winter Wednesday morning at the busy subway exit at Yonge and Eglinton streets in Toronto. Twenty-year-old Monica Hinds is struggling through the rush hour crowds on her way to work when, up ahead of her, a woman drops a beige folder, scattering papers everywhere. Commuters walk by, but Monica takes a minute to stop and help the woman pick up her documents, handing them over one by one. When thanked, she smiles kindly and says, “No problem!”

The young man risking a broken nose, the customer in Korea and the woman with the unwieldy documents were no ordinary members of the public. Each was a Reader’s Digest researcher taking part in a unique test to see how helpful and polite people are around the world.

From Thailand to Finland, from Buenos Aires to London, people worry courtesy is becoming a thing of the past. Service in stores has become surly, they say, and youngsters have lost respect for their elders. Lynne Truss, in her international bestseller Talk to the Hand, claims that we live in “an age of lazy moral relativism combined with aggressive social insolence” where common courtesies are “practically extinct.”

But is such pessimism justified?

Our Three Tests

We sent out undercover reporters—half of them men, half women—from Reader’s Digest editions in 35 countries to assess the citizens of their biggest cities. (In Canada, we tested the people of our two largest population centres, Toronto and Montreal.) In each location we conducted three tests:

• We walked into public buildings 20 times behind people to see if they would hold the door open for us.

• We bought small items from 20 stores and recorded whether the sales assistants said thank you.

• We dropped a folder full of papers in 20 busy locations to see if anyone would help pick them up.

To allow us to compare cities, we awarded one point for each positive outcome and nothing for a negative one, giving each city a maximum score of 60. We did not attempt a strict scientific survey; it was the world’s biggest real-life test of common courtesy, with more than 2,000 tests of actual behaviour.

So, which city emerged as the most polite and which as the rudest? Here’s what we discovered:

The Top Three: New York, Zurich, Toronto

They have a reputation for being big-headed, but New Yorkers showed they are big-hearted, too, by finishing first in our global courtesy ratings. They placed in the top five in all three tests and were particularly polite when it came to holding doors open, with only two people failing to do so.

“I don’t even think about it,” said syndications assistant Kirsten Chieco, who held the door of one of the Starbucks coffee shops where the tests were done. “Most New Yorkers are courteous.”Surprised? Not former Mayor Ed Koch. Asked to react to our findings, Koch pointed to a rise in New York niceness since the terrorist attacks on the city five years ago. “After 9/11, New Yorkers are more caring. They understand the shortness of life.”

The second most courteous place: prosperous Zurich. In a feat matched only in Stockholm, Zurich store assistants thanked us for our purchase in every store we visited. Old-fashioned customer service was very much in evidence.

“I am friendly to people whether they are dressed shabbily or are wearing an expensive fur coat,” said Frieda Lütolf after we purchased $2 worth of chocolate from exclusive confectioner Sprüngli’s. “Everyone I deal with is served attentively—even those who are rude to me.”

Swiss shop workers’ good manners were often inspired by pride in their work. “I have been here for 40 years,” explained tobacconist manager Ursula Gross. “I like it, so I have always arrived on time and have always been friendly and courteous.”

Toronto came third among all the cities we tested. On a cold day in the trendy Queen Street West area, we were helped with a dropped folder by Mike Parsons, a 28-year-old street artist, sitting cross-legged on the sidewalk, sketching. “I sit out here doing my drawings all day, and I find people to be really good and cheerful,” he told us. “ Toronto is very tolerant, very polite.”

Litigation lawyer Mark Ellis, in a dark trench coat, Blackberry clipped to his belt, agreed. “I’ve seen more politeness in Canada than in many other places I’ve been, particularly Europe,” the 48-year-old told our male reporter after holding the door and stepping elaborately to one side to let him enter Bell Canada Enterprises Place in the financial district.

Still, two European cities— Berlin and Zagreb—did well in our tests, tying with São Paulo for fourth place. Zagreb residents were world leaders in helping with dropped papers. Seventy-two-year-old Josip tried to bend down to pick up our female reporter’s documents despite having arthritis and a bad back. “I always help someone in trouble,” he said, “if I can!”

In São Paulo, even petty criminals were polite. As we bought a pair of cheap sunglasses from a trader at an illegal market on 25 de Março Street, shouts rang out that the police were coming. The merchant gathered up his goods to flee—but not before thanking us for our $2.

Somewhere in the middle of the rankings was Amsterdam, at 20th. Montreal, at 21st, came in just below the global average. There, while store assistants were almost unfailingly courteous to customers, the general public didn’t do so well in helping others out. In Montreal’s Central Train Station, a well-dressed man in his mid-50s failed to hold a door for our female researcher, offering the excuse that “I just held the door for someone downstairs” before continuing on his way. At the McGill subway sta-tion, another well-dressed man, who looked to be in his late 20s, steered himself around our researcher, who had dropped papers in his path. He seemed peeved to find out it was staged. “Why didn’t I stop? I’m not even supposed to be out of my office right now!”

The region that most consistently lacked courtesy: Asia. Eight out of nine cities there finished in the bottom 11.

Last in our rankings was Mumbai, where courtesy in stores was particularly lacking. When our female reporter bought a pair of plastic hair clips at a convenience store, sales assistant Shivlal Kumavat turned his back on her as soon as she had paid. Asked why, the 31-year-old was unapologetic. “Madam, I am not an educated guy. I hand goods over to the customers, and that’s it.”

In a government-run supermarket, a young female employee lied that she hadn’t seen what had happened when asked why she didn’t help our reporter pick up his papers. Another worker stepped on them. “That’s nothing,” said the store’s security guard. “In Mumbai, they’ll step over a person who has fallen in the street.”

What was most striking in Asia was how few people held doors open for us: Every city except Hong Kong finished in the bottom ten in the rankings, and not one had a success rate higher than 40 percent. Many Asians simply don’t include door-holding in their notions of courtesy. “How can we measure someone’s value simply by whether they hold a door open?” observed 19-year-old student John Christopher Padilla in the Philippine capital, Manila.

Yoon Mi-ri, a 43-year-old businesswoman, held open the door of a shop in Seoul only because “I often go overseas on work trips and it’s basic manners over there. In Korea people don’t pay much attention to such things.”

But we found plenty of discourtesy outside Asia, too. Moscow and Bucharest ranked as the least polite cities in European countries. When an affluent-looking lady in her 40s failed to hold a door in Moscow’s Prospekt Vernadskogo, she chided us: “I’m not a doorman. It’s not my job to hold doors. If someone gets hurt, they should be quicker on their feet.”

What can we learn from our results? While two of the world’s most affluent cities— Zurich and New York—came at the top of our rankings, we found plenty of courtesy in poorer areas, too. In Johannesburg our researcher concluded, “The better dressed the person, the less likely he or she was to help. This applied across the board, irrespective of race.” Nonetheless, it was prosperous cities that were at the top of our rankings. Charles Mosley, editor at British etiquette publisher Debrett’s, ventures this explanation: “Wealthier cities aren’t generally as crowded, and competition for resources is less intense.”

But being in a hurry isn’t always a barrier to helping people. Tests carried out during morning rush hours produced almost as many positive results as those performed off-peak.

In fact, Toronto ranked second only to Mexico City for courtesy during rush hour. For Londoner Gary Webber, a 46-year-old local government worker who helped gather up our papers during the city’s rush hour, this came down to empathy. “You looked as if you were in a hurry. I was in a hurry. I thought, Let’s work together and get us both on our way.”

Older and Better?

Many older people we encountered complained that courtesy was less prevalent among the young. But we found that the under-40s were, by a small margin, the most helpful of all age groups. Toronto ranked second globally for courtesy among the young; Montreal came tenth. In fact, overall, the over-60s were the least courteous. “The younger, the more courteous, it seems,” says our researcher in Finland. “So, no more complaining about the younger generation not being up to standard!”

Women were slightly more courteous than men, and oddly, both groups were significantly more polite towards their own sex. Some men told us they worried about patronizing modern, independent females. “I’m originally from Romania,” said Valentin Punga, a 30-something resident of Montreal. “Over there I wouldn’t hesitate to help pick up the papers. Here it is different. Once, I tried to help a woman who had dropped something, and she told me she was perfectly capable of doing it herself.”

Courtesy levels in larger stores were roughly similar to those in smaller establishments. In a Sydney branch of Woolworths, cashier Reena had a huge smile for every customer and thanked us very cheerily. But in a tiny music shop in Milan, we were ignored for ten minutes by the middle-aged assistant, who pretended to be busy stock-taking before he deigned to sell us a guitar pick.

Globally, about 74 percent of store employees said thank you. The most common reason given was that if you were nice to customers, they would come back. “After the Argentine economic crisis of 2002, I would never risk losing a sale,” said Buenos Aires toy-shop owner Amanda Herrera.

Our other two tests produced less heartening results worldwide. Just over half of people held doors open for us and only a third helped pick up our papers. Many in the latter category said they were too busy or couldn’t be bothered to stop, but a significant minority was scared of crime—or of being seen as a criminal. “I’ve heard that pickpockets use tricks like that,” said a 50-year-old woman in Prague. “One drops something, you help them pick it up, and their accomplice robs you while you’re not looking.”

So, did the world pass our courtesy test? Overall, the cities we tested showed it 54 percent of the time. It has been said that common courtesy is the oil that keeps society running. If so, our check on the level of the world’s courtesy suggests that, in most places, there’s plenty of oil in the engine. But some cities could use a top-up.

Were our researchers surprised by the treatment they received from their compatriots? It depended. Our Toronto reporters—one was born there, and both are long-time residents—weren’t at all surprised that their city ranked so high. “I’ve always found people here to be very polite and courteous,” says reporter Ian Harvey, who immigrated to Toronto from England in 1972. “This is a fast-paced city—we’re all busy—but it’s the norm for people to take the time to help out.”

What did our Montreal researchers think about their city scoring below the global average? “The funny thing is, despite Montreal’s results not being great, for the most part people were actually quite nice about not being courteous,” says reporter Julia Slater.

“When we approached people after they’d ‘failed,’ most didn’t mind stopping to talk to us, and they either offered an excuse or were apologetic.” Interestingly, in the paper-drop test, only five out of 20 Montrealers stopped to help, but many at least pointed out the dropped documents to our researchers as they passed by. Says Slater, “Those people believed they had done the courteous thing.”

Our Paris reporters were so upset at the lack of help with dropped papers that they considered abandoning the test altogether. But elsewhere, our researchers were pleasantly surprised. “It was great to find that the vast majority of our subjects not only passed the test,” says Salvador García of Mexico City, “but said they think we are part of a culture of kindness despite our daily problems.”

An example of this kindness was shown in the same city by pastry-shop worker Rodolfo Mateo Santiago, 21. He thanked our researcher for her purchase of a bottle of water and revealed that he had inherited his belief in courtesy from his grandmother, who had told him, “The most beautiful thing you can give another human being is a genuine smile. Live your life by this motto and you will see wonderful results.”

Inside the Toronto Tally

BY BONNIE MUNDAY

Toronto ranked third for courtesy out of 36 major cities around the world, with 70 percent of people tested taking a moment to do the courteous thing. Reader’s Digest had two reporters go to central residential neighbourhoods, downtown shopping areas and the financial district. They “tested” Bay Street bond traders, part-time cashiers, lawyers, students and artists. Here’s a snapshot of what they found:

Service With a Smile

Customer service is alive and well in Toronto: 16 out of 20 cashiers passed the courtesy test by saying a pronounced thank you when we made a small purchase. At a bulk food store on Danforth Avenue, Sean Thomson, a tall 30-year-old with shaved head and pierced ears, smiled and thanked our researcher twice before wishing her a nice day. He did the same for everyone else in line. Why? “It’s what my boss wants, and what my parents taught me. It’s about respect.” Jessica, 24, a cashier at a chocolate shop, echoed Sean. “You don’t just take the customer’s money and say, ‘See you later.’” She added, “The staff here, we talk about how we expect the same courtesy when we’re the customer, but we don’t always get it, and that’s disappointing.”

Jessica wouldn’t have been happy with the service at a women’s clothing store in the Eaton Centre mall downtown, where a fashionably dressed young woman with thick black eyeliner barely said a word to our researcher throughout the transaction. When asked about it afterwards, she said sheepishly, “We’re supposed to say, ‘Thank you for shopping here,’ but sometimes I forget.”

That was the exception, as we found that male and female cashiers in stores large and small were quite courteous, thank you very much. At a newsstand, our reporter bought a packet of gum and was thanked by Zeny Ruiz, 44. “I like to set an example for my staff,” she told us, “but it’s also the right thing to do.” In an electronics store on Queen Street West, Daniel Hines, in baseball cap and army pants, said, “I thank every customer, even the ones who tick me off. Ultimately, it makes your own day go a little smoother.”

Paper Chase

Would you take a minute to stop and help a stranger gather up some papers they’d dropped on the sidewalk or in a shopping centre? In Toronto, 11 out of 20 people we tested did.

That’s the lowest score of our three tests—and, interestingly, of the nine who “failed” the test, five were in their 60s and up. The oldest, Sergio Balmont, 79, told us after he and his wife walked past our female researcher, who was crouched down gathering papers, “I knew I should have helped, but I’m too old to bend down.” Most of the other elderly people who didn’t help told us politely that they didn’t want to get involved with someone else’s personal documents.

Of course, a couple of young people passed by without helping, too. “He looked like he had everything under control,” was the excuse of a shoe buyer from Montreal who saw our researcher picking up scattered papers from the wet sidewalk. But most did stop to assist—teens in particular. “Of course I helped,” said William Lee, 16. “I’d hope someone would do that for me.” Keilani Etzkorn and her friend Manuela, both high-school students, also stopped to help. Said Keilani: “It’s what my parents taught me to do.”

Door Stoppers

Our third test showed that three out of four Torontonians hold the door for a stranger—male or female—walking behind them. Most were pleased to stop and talk to us when we revealed we had set them up. “I do it all the time,” explained Meredith McLellan, 25, a fair-haired law student who held the door for our female reporter on her way out of the busy subway stop at Yonge and Eglinton. “I guess I was raised that way.”

It was a common theme. Faisal Bhiwandiwala, a 30-year-old tech-support worker who held the door for our male researcher during a Wednesday morning rush hour, told us courtesy is an instinct. “I was brought up that way. It’s the normal thing to do.”

Fifty-year-old Eric McGarry said, “As a teacher, I think it’s important to show that you’re thinking of others and not just yourself.”

In the St. Lawrence Market, two 14-year-old ponytailed girls could have used that lesson, but when asked why they didn’t hold the door, they claimed not to have seen anyone coming behind them. Similarly, a 41-year-old operations manager listening to her iPod said, “Normally, I’d have held it open, but I’m in a hurry to get back from lunch and I had my headphones on.”

Some who helped did so for practical reasons. In the Bay Street financial district, Brian Galley, a crisply dressed 38-year-old portfolio manager, pointedly held the door for our male researcher. “I always do,” he told us afterwards. “These doors are heavy, and you don’t want to let them slam on people.”

Ramona Taharally, also 38, offered a simple explanation for her courteous act. “People do it for me,” she said, “so I’m going to pass it on.”

January 11, 2009

The Satyam story – 1

Filed under: Frauds — Zizu @ 5:18 am

It all began with Satyam wanting to acquire Maytas. The reason given was ‘diversification to hedge risks’. Sounds pretty innocuous. And such a deal actually got just a chance mention in the papers. Satyam would spend $1.3 billion to acquire the entire stake in Maytas Properties, an unlisted firm owned by the promoters of Satyam. It also planned to buy 51 per cent in Maytas Infrastructure, a listed firm in which the promoters of Satyam own 36 per cent, for around $300 million. All these transactions were to be funded by  shareholders’ money. The investors were up in arms, since they were never consulted before such a deal could be inked.  An interesting snippet pointed out in Rediff says – “The management points out that DLF’s market capitalisation is Rs 47,250 crore and that the company has approximately 750 million sq ft of land. But the two can hardly be compared—DLF has an established track record and brand. For that matter, the market capitalisation of Unitech, which has close to 650 million sq ft of land, is Rs 6,234 crore. The management is valuing Maytas Infrastructure, which has a market capitalisation of Rs 2,856 crore and has bagged orders worth $5.7 billion, at Rs 2,740 crore in line with SEBI guidelines. ”  This sort of began to cast some doubt on the whole shady business. Investor pressure caused Satyam to call of the deal, but not before such pressure ‘surprised’ the now disgraced CEO Mr Raju. He had wanted the acquisition to go through, since he felt that this could boost ‘organic’ or ‘inorganic’ growth and be good for the firm! Ok, fine!! Whatever! And to appease investors, Satyam looked for a buyback or a dividend. Now, after so much has happened, it looks really farcical, and highly hypocritical!

Then the problem began to brew. On the 18th of December, came a piece of news that IT outsourcing contracts of over $200 million (around Rs 960 crore) which were up for renewal were being re looked at.  Some of the major clients who have long-term strategic relationship with Satyam include Unilever, Nestle, DuPont, Cisco Systems, GE, Sony and Applied Materials. The Maytas move by Satyam, it was surmised, could trigger a possible review of their relationships with the company.

Fingers were raised on how ‘independent’ directors approved the decision. There were larger questions about the credibility of the Indian IT industry as a whole, while corporate governance became the hottest topic of debate, edging out terror and the crisis in the Middle East. Justified, when so many shareholders put their hard earned money on a firm. The last thing they expect is for that money to be used into a ‘family business’! There is a saying amongst financial circles – ‘Never underestimate the market, because the market knows what you don’t know, and it knows what you could know, long before you know it’. So, when investor sentiment drove the deal to be repealed, there was mass applause, that cheered that even if the firm cannot govern itself ethically, at least the markets are just.

Thereafter blame games began. Satyam said one of the Big Four were involved. All the Big Four denied any complicity. Some said that Satyam acted within the laws, some said shareholder consent was not needed. And it went on!  The World Bank banned Satyam for 8 years. Satyam challenged the ban and demanded an apology. Raju wrote a cute letter to all employees that ran thus –

Dear Associates,

I am writing to inform you of what has developed since my note of December 18th and to outline plans to restore our stakeholders’ faith in Satyam.

The events of the past two weeks have raised many questions, but these can be distilled into two basic issues: the viability of our business strategy to diversify; and the effectiveness of our corporate governance. 

Re: business strategy, you should understand that Satyam is completely committed to the IT services and BPO business, as we have been since our inception. While the idea that we could diversify into an unrelated business was rejected by our investors, it was formed with the belief that doing so would not imperil our leadership in our core business or lessen our commitment to it, and that all stakeholders would benefit.

Satyam did not — and does not now — intend to retreat from IT and BPO services in any way, and going forward, Satyam will focus exclusively on these markets.

Re: corporate governance, the board arrived at its decision to bid for Maytas by following all required processes and procedures, and while there was a spirited discussion among members, their vote to approve the motion was unanimous.

Further, Satyam has won numerous awards for excellence in corporate governance, including the Golden Peacock Global Award for Excellence in Corporate Governance on two separate occasions, most recently in 2008.

Over the past two weeks, we have been communicating these facts to our customers, and I’m very pleased to report that customers continue to show a high level of trust in Satyam.

We have also been in contact with many of our investors, and we have taken key steps to regain their confidence. These include strengthening the board by changing its size and composition, and engaging DSP Merrill Lynch to provide strategic advice and options. The board will meet on January 10, 2009 to consider these options and to chart a course of action that would boost stakeholders’ confidence further.

Please be assured that the board and the leadership team are doing everything possible to get Satyam back on track. We cannot do this without your help, however. I ask for your continued faith in Satyam and for your steadfast focus on your customers, especially in the face of wild speculation and unchecked rumor.

There is simply no more effective way to strengthen the company and to secure its future — and yours — than by delighting your customers.

Thank you very much for your commitment and support. Once again, I wish you the very best for 2009.

With warm regards,

Raju

How much more hypocritical can a human being be? Ironical that another letter, later termed as the notorious ‘5 page confessional’ actually brought the whole firm and indeed the Indian IT community down to its knees.  On the 7th of January 2009, after having all along played the ‘Confident of a fightback, core-competence’ song, a letter to the board admitting massive fraud threw everyone into shock. As if the current credit crisis, Madoff, terror were not enough, one learnt of inflated cash and deflated liability!  Here is the letter.

The headlines flew – Raju can get 10-year jail for cheating investors    Satyam’s Raju can get a 7-year jail term      Satyam employees in total disarray       Sebi to probe Satyam market operations          Not all Indian companies are Satyam     1 year needed to probe Satyam case    Satyam interim CEO forms new team      Tech Mahindra eyeing Satyam     Raju may have left for US for Upaid case       No complaint received against Raju: Police      No govt takeover of Satyam: Nath            Satyam: Auditors’ body to pull up PwC         Satyam debacle not to impact IT industry: Wipro       Satyam not first nor last fraud: Damodaran           Satyam CAs, auditors may face severe punishment               Ramalinga Raju: Conman in gentleman’s clothing?   Satyam: India’s claim to Ponzi fame      Time for hard look at corp governance: India Inc             Ram Mynampati to be Satyam’s interim CEO    Sebi ‘horrified’ by Satyam fraud     Satyam issue may affect investor confidence     Raju resigns, admits Rs 8,000 cr fraud       Satyam interim CEO’s letter to employees   Satyam to be stripped of corp governance award     Satyam fiasco: CII shocked     NSE removes Satyam from Nifty; replaced by Rel Cap          Raju, a feared man in US and India           Nasscom shocked; says Satyam is one-off case      Satyam’s fraud will be inquired into: Andhra CM   Satyam fraud a deliberate act: Infosys            Govt to refer Satyam case to probe agency …..

The Saga continues, but all of this is a rude lesson on how excess greed can have horrendous repercussions. There will be more to come…..

January 9, 2009

The plight of Indian democracy

Filed under: India,Politics — Zizu @ 3:08 am

This is an article I found on rediff today, and I couldn’t agree with the writer more. If we go up in arms against our leaders, no one else is to blame, but ourselves, snce we have misused democracy. Democracy is a very funny tool. It is extremely powerful and empowering, while at the same time, the misuse can be disastrous. Like Peter Parker’s uncle says, “With extreme power comes extreme responsibility.” Ask the Afghan woman who finally got a chance to vote for who should lead her, and then we can realize the meaning of democracy. Till then, we are responsible for all Rabris, Golmas, Gawlis and what not.

If Ashok Gehlot ever gives up politics he can make his mark as a juggler.

Gehlot is the chief minister of Rajasthan. And the finance minister. And the home minister. And the state excise minister. And the public works minister. And the urban development and housing minister. And the forest and environment minister. And the youth affairs and sports minister. And the mines minister. And the social justice and empowerment minister. And the waqf minister. And the information technology and communications minister. And the food and civil supplies minister. And, well, you get the picture!

Ashok Gehlot alone knows how he shall find the energy to juggle these responsibilities. Speaking of energy, did I mention that Gehlot is also the energy minister?

It is clear that the utter paucity of talent in the Congress ranks is so great that Gehlot and the few good MLAs at his disposal must take more than their fair share. Thus primary education and secondary education fall to the lot of Labour Minister Master Bhanwar Lal, higher education is the responsibility of Industries Minister Shanti Dhariwal, technical and engineering education is overseen by Tribal Area Development Minister Mahendrajeet Singh Malviya, and technical education (agriculture) is under, as you might have guessed, Ashok Gehlot.

May one hope that between them at least one of the four harassed education ministers finds the time to educate their colleague Golma Devi? When I say ‘educate’ I do not mean that they should introduce her to the intricacies of public administration, simply teaching her to read and write would be enough.

Literacy is apparently not one of the gifts possessed by the newly-elected MLA from Mahuwa (Dausa). This has not, however, prevented Ashok Gehlot from naming her as minister of state for khadi and gramodyog.

It has been reported that much hilarity ensued when the new ministers were taking their oaths of office, normally a fairly solemn ceremony. The poor lady could not read the oaths of office and confidentiality when given the paper with the prescribed words, and the governor then generously decided that the oath could be taken as read.

Let us put aside all the politically correct blathering and recognise the appointment of Golma Devi for exactly what it is — a symbol of the depths that Indian democracy is plumbing today. Does anyone believe, seriously, for even a single minute, that an illiterate person is qualified to make head or tail of the innumerable files that every minister must read?

But Ashok Gehlot knew what he was doing when he named Golma Devi as one of his ministers, he was obeying the compulsions of caste politics. The Congress played the caste card to the hilt during the Vasundhara Raje era, pitting the Jats against the Gujjars and the Gujjars against the Meenas. When that was still not enough to propel the Congress to a simple majority in the Vidhan Sabha, Gehlot was forced to turn to independent MLAs.

The Meena leader Kirodi Lal, the MLA from Todabhim (Karauli), was once one of Vasundhara Raje’s ministers, but then became one of the BJP rebels. He now leads a group of five independent MLAs that hold the balance of power. Kirodi Lal apparently refused the offer of a ministry for himself, but demanded a seat at the table for his wife, Golma Devi.

The fact that Kirodi Lal refused office indicates that he is unwilling to be associated too closely with the Gehlot administration, especially with Lok Sabha elections around the corner. After the oath ceremony, the beaming husband told the media that with Golma Devi in office he himself would take over household duties; the dutiful wife duly attested that her husband could make excellent gajar mattar, daal-baati. Ashok Gehlot must be hoping that Kirodi Mal’s culinary talents do not extend to cooking up trouble!

There was a time when we in the south used to look up to politicians from the north in some awe. Those were the days when we had a Jawaharlal Nehru in Delhi [Images] and a Gobind Ballabh Pant in Lucknow, today when we think of Hindi belt politics we are more likely to think that they are personified in Golma Devi, smugly assuring ourselves of the superiority of our own leaders.

If so, I recommend a reality check for my sniggering brethren from the south. Anyone who thinks that literacy by itself leads to a better class of politics should take a long hard look at Tamil Nadu’s rural development and local administration minister.

There is no doubt whatsoever that M K Stalin, the ‘Thalapathi’ of the DMK, is not just literate but highly educated. He holds a bachelor’s degree. He has dabbled in theatre, founded the Tamil magazine Ilaya Suryar, and wrote regularly in the DMK newspaper Murasoli. He is no stranger to public life, having addressed his first public meeting precisely forty years ago, on January 3, 1969.

So how did M K Stalin celebrate the ruby anniversary of his entry into politics? Assuming the now famous tapes of the incident are correct, the minister was busy breaking the law, distributing currency notes before the by-election in the Thirumangalam assembly constituency. The Election Commission has taken the case seriously enough that it ordered its officer to register a case against Stalin. (A Union minister escaped because he was only seen handing money to M K Stalin, not to the public at large!)

I understand that M K Stalin is pleading that he was distributing money while celebrating someone’s son’s birth. I am perfectly willing to believe that some DMK functionary in and around Madurai [Images] had a child but it beggars belief that currency notes were being flung around just like that for a newborn. Or is the DMK now so flush with funds that this is standard practice?

Whatever the truth, M K Stalin, a four-time MLA and a former mayor of Chennai, can scarcely plead ignorance of the election laws. What exactly is the point of having a literate MLA whose literacy apparently does not extend to reading the Model Code of Conduct?

There was a hue and cry against politicians immediately after the tragic attacks in Mumbai [Images]. But let us face it squarely, it is we who elected both the literate M K Stalin and the illiterate Golma Devi, and it is we who must endure the consequences of being swayed by the politics of language or of caste.

It is a gloomy January day in Delhi as I write this but no murkier and no more dismal than India’s prospects if our politics continue to deteriorate like this. North or south, literate or illiterate, does it make a difference?
T V R Shenoy

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