Satyam Struggles to Pay Employees

As Indian company Satyam tries to recover from the $1B loss of liquidity overnight due to fraud, Investors have their eyes on PricewaterhouseCoopers the accounting firm for the company.

“Pricewaterhouse has signed the balance sheets, and so they are
responsible if there has been a falsification,” said Ravi Nath, a
lawyer with the Rajinder Narain law firm in New Delhi. The firm has
been contacted by several investors looking to sue the auditor.

“If
you’re an auditing company and your client says they have $1 billion in
cash, you do check with the bank,” said Hugh Young, the head of
equities for Aberdeen Asset Management, which was a Satyam investor
until it sold its holdings as problems came to light.

Read the full article at NYTimes.com

January 8, 2009 In: Companies, International Comments (None)