I am not so much concerned with those holding Satyam shares, (they were just out there to capitalize on others hard work, with their flush funds. I agree Capital is needed, but getting up each morning, logging on to investment sites, making a few phone calls, getting ‘insider’ information and buying/selling shares, personally to me, does not constitute, honest labor – so I am not that concerned )
I am more concerned with the life and fate of the talented and resourceful employees of Satyam, who being true and honest to their company, had contributed so much, and now they find themselves in a very precarious situation. My heart goes out to them.
Yesterday two important decisions were taken by the UPA Government, which shows that, carrots have long been given, now the ‘stick’ has to be wielded. The oil strike was broken by using ESMA and Satyam Board was dismissed and Ramlinga Raju made to surrender. It is to be seen how soon he starts ‘singing’.
Myself being a real ‘dud’ in matters concerning finance, I could not fathom, how, all of a sudden, a reputed and leading I/T company, having full work load, can all of a sudden collapse. Where has the money gone. The reputation of its Founder and the Board is in tatters, but we have to find the money, it must be parked some where.
I was thinking on this line, when I came across an interesting article entitled
Is India a Poor Country? Black Money, World Aid and The Coming Sovereign Crack Down of Tax Havens.
DK Matai - October 20, 2008
I think the Satyam employees should constitute a Committee comprising of their best finance whiz kids, who should then fly to Switzerland and also check out other tax heavens. And I am sure, they will surely find the hidden hoards, so at least, and lay claim to it, so that they can continue to contribute to the growth of the company, retaining their customer base, and also drawing their salaries.
I have just copy pasted, some of the salient points I found to be of interest in the article. Hope it will prove to be an eye opener. My eyes had simply popped out, as I read the contents.
Surprisingly, India -- still regarded as a poor country by many -- has USD 1.5 trillion in Swiss banks, which is more black money than the rest of the world combined. This is thought to be unaccounted money earned in India by inappropriate means as otherwise any Indian citizen or corporation wishing to open a bank account abroad has to take permission from the Reserve Bank of India and records do not show any such permissions granted for deposits in Switzerland.
A 2006 report of the Swiss Banking Association claims Indians are the biggest depositors of black money in banks located in Switzerland. Top five countries in terms of such deposits are:
India: USD 1,456 billion (Way to Go INDIA – ECONOMIC MUJAHEDEEN OUT TO WRECK THE COUNTRY – NO ONE IS WORRIED ABOUT THEM – SO VERY SURPRISING !!!)
Russia: USD 470 billion
United Kingdom: USD 390 billion
Ukraine: USD 100 billion
China: USD 96 billion
With private account deposits of USD 1.5 trillion in foreign reserve which have been misappropriated, an amount 10 times larger than India's foreign debt -- USD 155+ billion -- one needs to rethink if India is a poor country?
It is argued that once this huge amount of black money and property comes back to India, the entire foreign debt can be repaid immediately, still leaving a huge surplus amount of foreign exchange reserves in India. Some 80,000 Indians travel to Switzerland every year, of whom 25,000 travel very frequently. "Obviously, these people won't be tourists. They must be travelling there for some other reason," believes an official involved in tracking illegal money. And, clearly, he is not referring to the commerce ministry bureaucrats who have been flying in and out of Geneva ever since the World Trade Organisation (WTO) negotiations went into a tailspin!
The well known economist Professor Arun Kumar estimates black money generation in India to be currently 50% of the GDP. The growth of black money in proportional percentage to the GDP has shown an alarming increase in recent years, from 20% in the 1980s to 45 - 50% at the turn of the century. It is further estimated by experts that one per cent of the world's population holds more than 57 per cent of total global wealth, routing it invariably through tax havens. ATCA's preliminary investigation to analyse the Swiss banking chain and to assess Indian wealth in that single country, suggests that the number is much larger than the USD 1.4 trillion figure and is more likely to be near USD 3 trillion. The larger figure can be derived from the deposits in vaults of gold, diamonds and other precious gems alongside assets managed out of Switzerland in other tax havens. There are some well known 'slush parks' like St Kitts, Antigua, Bahamas, Isle of Man and Liechtenstein that multiply such holdings manifold with the central management points in Switzerland.
MIND BOGGLING EH !!! OK IWILL NOT TAX YOUR BRAIN FURTHER.
I HAVE MADE MY POINT ! THANK YOU DK MATAI - now to some extent I know where the Satyam money is parked. Happy hunting !!!