Day 6: Kalam quits Satyam NGO, PwC in trouble

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SATYAM FIASCO

Day 6: Kalam quits Satyam NGO, PwC in trouble

Karma Paljor / CNN-IBN

TimePublished on Tue, Jan 13, 2009 at 09:30, Updated on Tue, Jan 13,
2009 at 09:45 in Business section

NO TAINT ATTACHED: Kalam was the chairman Emeritus at the Satyam-funded EMRI.

New Delhi: When former President APJ Abdul Kalam decided to become
chairman Emeritus at the Satyam-funded NGO Emergency Management and
Research Institute (EMRI), little did he know that he was associating
himself with one of corporate India's biggest scandals.

Following the Satyam scam, Kalam has decided to resign.

Other top corporate leaders, including ICICI CEO, K V Kamath, CII
Mentor Tarun Das and even former NASSCOM chief Kiran Karnik followed
suit.

But while EMRI may survive the scam with most states deciding to
continue with it, it's the Satyam auditors who are, facing trouble.

Regulator for chartered accountants ICAI's special committee will be
formed on Tuesday to investigate the scam.

The group will give its report in a week.

"The special committee will work in coordination with regulators -
SEBI and RBI - as well as the Ministry of Corporate Affairs and share
input with them," said ICAI president Ved Jain.

A show-cause notice has already been issued to Satyam auditors PwC.
They have 21 days to reply.

In case they are found to be in gross negligence they will be barred
from practicing for five years.

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