Did banks collude with Satyam Raju’s fraud?
The former CFO of Satyam Computer Services, Srinivas Vadlamani, in his statement to the CB-CID stated that the Fixed Deposits, shown as reserve funds are unreal and fictitious and were managed between the audit section and management.
If this statement by Srinivas is true then the fixed deposits to the tune of Rs 5043 Cr shown in the books of Satyam as reserve fund must obviously have been issued by banks. If it is not true, then Satyam Raju might have fudged the fixed deposit receipts. Auditors PriceWaterhouseCooper said they have audited as per the records available and they endorsed the existence of Fixed Deposits.
The answers to this crucial question will be known only after comprehensive auditing of accounts.
The bankers of Satyam are Bank of Baroda, BNP Paribus, Citibank N.A, HDFC Bank Ltd, HSBC limited and ICICI Bank Ltd.
Incidentally, Deepak Parekh, Chairman of HDFC bank is now appointed by the Government of India as a Satyam board director and likely to be appointed as its Chairman.