Government should not Bail out Satyam Computer Services Limited:
Over on the Times Now Channel report that central government is under severe pressure to bailout Satyam Computer Services, I certainly ponder whether our government should bail out Satyam? As rumors fly that a Central government are in under severe pressure to bailout Satyam and even times of India has reported the central government is getting more and more pressure from Andhra Pradesh government to bailout failed Satyam Computers Services making me really sick. As a law abiding citizen of this country, I have been following with increasing concern the fall of Satyam computer services saga and honestly I am not that sad but totally angry and frustrated.
Satyam Computers: Source Wikimedia
While watching Times now channel last night and listening to reporter about this rumor, I figured out that AP state government is pushing hard for this bailout package and central government is resisting till now but I am sure this rumor will become reality in coming days and Satyam will be bailout. But my main question is should we really bailout this company? Why should we taxpayers be paying for this company failure? We have to remind ourselves that this company is not affected by recession or economy slowdown but this suffered because of crooks management’s people.
All these questions and one answer in my mind A Big NO to this bailout package for Satyam. Don’t get me wrong I will surely put my points to support my answer but before I get there let me tell you that I also belongs to IT industry, by profession I am IT consultant, going throw recession period so I know how it feels when your job is on edge and you don’t know what tomorrow is holding for you especially in this financial market hard time we all are going through.
I know there will be lot to gain if government really bailout Satyam, but most important gain will be 53000 employees will be safe and might just help to revive India software Industry face. Bailout will surely brings back some smile on many investors and small third party vendors of Satyams. I am honestly second to none in advocating safe guard of employees jobs but do we really need to bailout this company in order to safe guard the jobs of 53000 employees? No, we don’t need bailout package. There are many other ways to safeguard employee’s jobs. Government should look into all options available to us.
Man Behind India's Biggest Corporate Fraud: Ramalinga Raju: Source Wikimedia.org
I strongly Oppose the Bailout Package for Satyam Computer Services Limited: Government should not bailout Satyam Computer Services: Reasons
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Satyam didn’t deserve any bailout package as it didn’t suffered due to doom in world financial market but because crooks director’s and greedy higher management people. This company Chairman and Director’s have deliberately cooked the company accounts for 7 years, Ramalinga Raju the disgraced promoter and chairman of India’s fourth largest software company has admitted that he has been lying whole world, employees of company and most important investor from around the world building up Indian biggest fraud in corporate history over 7000 crore. It’s because of this greed company is suffering, if government is going to bailout this company then tomorrow may some other big company will come and ask for bailout isn’t it? The day Satyam is facing today is just because of another facet of the same greed and fraud business strategy lead by Ramalinga Raju . This company should not deserve our taxpayer’s money; Satyam has broken the trust of my people deliberately and in a well organized way. Satyam is has cheated us and become Indian biggest corporate Fraud Icon so no need our funding.
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Secondly there are a number of problems that got Satyam here, but one big issue is the lack of regulation: on part of Indian government and also on the part company auditors. A strong government regulation would have put stop the unbounded greed of these management people and would have helped to avoid the troubles we now face. So why should we be paying for our mistakes of our so called government? For me it’s serious crisis in our democracy, bailout means giving loans to companies who needed in order to safe guard jobs and effect on total economy but all money belongs to us taxpayers so government should not decide on its own about our money. Even if government thinking to bailout Satyam then it’s should come to us first and our people will decide Yes or No.
- Thirdly I know many people will start arguing that if we let Satyam fail it will take thousands of jobs of Satyams employees, many hundreds of jobs of third party supplier of Satyam too. I know this is the last thing we need right now especially when we are also suffering from economic slowdown. I also know we had bailout banking and financial industries but that was a total different case (banking industries was effected by world economic collapse) and Satyam is case of Biggest Fraud in Indian corporate history, so bailing out Satyam is just trying to save the blackest name of Indian corporate. If government really wants to safe the jobs of employees, then there are many other ways to do it. There is nothing in the name of Satyam, its not ”too big to fail” so, Satyam should be broken up into several smaller companies and put up for sell. Let other companies acquired Satyam and its employees.
Even if Satyam file bankruptcy let it be, after all we have this law to use it. Let Satyam use it as bankruptcy doesn’t mean company collapse it’s just means that it needs new management people who can look after the company in much better way and can governed the company in a best possible manner. This is what is needed the most for Satyam. Bailout won’t work out, Brand Satyam (Truth) is not anymore it’s has become A-Satyam (A Lie), a black mole on India IT Industry face.
Their Slogan “Enabling Businesses to Adapt Rapid Change” has shown the real meaning: Enabling Business to Adapt Fraud and Huge Losses and let the people of this country suffer.
We have learned the hard lesson and I hope our government should also learn that we need more strict regulations if we really need to keep an eye on our corporate. It is very simple if Satyam fails tomorrow and go on to extinction then it’s not because of us, but because of real greed of Satyam management people. I just request government for sake of India and for sake of God please tighten the regulations and fix the black holes right now so that we can prevent making of another Satyam Saga.
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