Ever since the Satyam scandal broke out in early January, unsuspecting Indians have once again got to see the seamier side of India Inc. This is a big blow to Indian businessmen. Otherwise, they were role models for the youth. They bought assets all over the world, hobnobbed with global decision makers, rode in fancy cars and created wealth for all. They were unstoppable. 

The halo around them was akin to the one that surrounded our armed forces till late when the rot in defence deals got exposed. Even before that, leakage from the Canteen Stores Department to the market place was a well-oiled operation. But it was never talked about. 

Corruption in the armed forces could be the subject for another piece. What concerns us here is the rampant corruption in the private sector. It has been institutionalized so well that most of us never even get to know of it. Kickbacks on orders, commissions on contracts – it is all an accepted part of the country’s corporate culture. 

In good old days, the owner of a company would more often that not keep the “purchase” function with himself or a family aide. Why? Your guess is as good as mine. All household expense, extended foreign junkets were all billed to the company. Family members were placed at sensitive positions. 

Before it was dismantled in 1991 by the PV Narasimha Rao-Manmohan Singh combine, the” licence, permit and quota” Raj gave Indian businessmen a unique set of skills – environment management. A businessman was known best for the bureaucrats and ministers in his pocket than his business acumen. Business houses which claimed licences and sat on them to create shortages were exposed a number of times. 

Liberalization came to us 18 years ago, but nothing has changed. Satyam has shown us that. The all-powerful promoter can do what he likes. 

At the executive level too, things are equally bad. For instance, money often changes hands when advertising accounts are given out. If there is any laxity, crores are siphoned off in no time. 

Forensic experts will tell you that there is a deluge of cases involving senior-management fraud these days. Most of these revolve round cooking the company’s books. As their bonuses are linked to the company’s financial performance, they have been found to park expenses in subsidiaries, move stocks to the dealers, book fictitious income etc.