When I read this article while hanging around in Madrid airport people must have thought I was nuts when I yelled: ‘WTF?’ Here’s what happened:
Earlier on Wednesday, the Delhi-based franchise of PwC had approached the Delhi high court seeking quashing of proceedings initiated against it by the government in the aftermath of Satyam scam. It pleaded before the court that the government proceedings were illegal as they have no connection with the Bangalore-based franchise which had audited Satyam accounts.
[My emphasis added]
So let me get this straight. PwC successfully argued that it was a franchise and not directly connected to other firms in the PwC orbit. If that’s the case then there’s a whole bunch of questions to be asked such as:
- What the heck was the CEO of PWC doing in India in the aftermath of the Satyam scandal?
- If there is no connection then why did Thomas Mathew step down?
- Do we now have confirmation that PwC is only a brand and not a global firm?
- Does this mean that if I subcontract and my subcontractor messes up then I can still avoid liability?
- How does PwC get a pass when IT signed off the accounts and not the subcontractor?
I could also suggest that either the judge was super PwC friendly, strong armed or bribed into such an odd verdict. Better still, let’s refer to this assessment:
Its clear the ICAI has implemented a wrong step just to favor a large MNC firm which had made lakhs of people suffer for their own mistakes. An auditors firm has the right and is also obliged to give away the right numbers and perfect accounts when Public Money is involved which they didn’t do. I am seriously confused why reputed firms like ICAI also bend their rules and change everything when its comes for known companies.
My emphasis added. Shame on everyone involved in this disreputable affair. But then I doubt investors who got taken to the cleaners will be so forgiving.
