Satyam CFO Vadlamani Srinivas blames Raju and for fraud

Satyam exCFO Vadlamani Srinivas has given confessional statement to the police and here are details:

• Srinivas said the auditors never pointed out any “deficiencies” during their discussions.
• But the most startling revelation was that fixed deposits were unreal and fictitious which were managed with an understanding between the audit section and management.
• “The bank deposits were handled directly by Raju and he was specifically asked not to look into it”, Srinivas said. This can be corroborated in Raju’s confessional statement which said “myself and my brother used to take decisions and instruct our CFO to do as instructed”.
• His confession is perhaps a pointer to the fact that the promoters could have forged bank documents to show fictitious deposits. This puts a question on the possible involvement of banks in the scam. (Those who should have a pretty clear idea by now are the software company’s main bankers — ICICI Bank, Bank of Baroda, BNP Paribas, Citibank, HDFC Bank and HSBC. )
• In the normal course, Satyam’s statutory Auditor PricewaterhouseCoopers would have demanded certificates from banks attesting to the existence of money in the IT firm’s accounts. Did the banks indeed certify that they had the money? Or were certificates forged and presented to PricewaterhouseCoopers?
• Srinivas has pointed fingers at his assistant Rama Krishna who has been working him for about ten years. “Prior to quarterly board meetings Ramakrishna will prepare balance sheet with the assistance of his team with internal employees. I do not pay much attention to the details of that balance sheet. It is natural that Rama Krishna will be next to be arrested.

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