Saytam: why government needs to act now

In my last blog post, I briefly stated what the government needed to do:

• appoint an interim board/administrator/receiver to take charge of the assets of Satyam – whatever little is left of them;
• initiate a thorough fact finding investigation of what went wrong, and how.

What I did not do was to highlight the urgency of the first step:

• Today, Satyam has a vacuum at the top. The promoters are gone; and the independent directors who would normally take charge in a situation like this have no credibility left.
• Satyam is a large company with global visibility and global clients. These clients would expect that they would continue to be serviced.
• Even if Satyam is to be sold, somebody has to run the sale.
• In the next few days, if nothing is done, both clients and employees would leave in droves and there would be nothing to sell.

I think this needs action today or at the very least within 24 hours.

Posted at 14:37 on Wed, 07 Jan 2009     View/Post Comments (3)     permanent link