Are Chartered Accountants Reliable

Chartered Accountants (CA) in India are mostly working as brokers of tax officials and  Bankers. It is CAs who manage tax evasion from tax authorities or bank finance from banks. Raju was the greatest fool who disclosed his fraud in Satyam Computers; otherwise none of CA could catch the culprit. Almost all CAs are simply selling their signatures to business community, busy in negotiating with tax officials and bank officials and they can sign any balance sheet blindly or cook fake balance sheet as per need of traders and industrialists. CAs work as middlemen between loan seekers and bankers and they can manipulate the entire accounts’ picture as per whims and fancies of the loan seeker and loan give bank if CAs get handsome amount as fees.CA can certify any faulty or fraudulent transaction in balance sheet of any company or certify bad assets of banks as standard assets provided they get handsome money and gift in return.

Similarly Lawyers in India in general are working as brokers and middlemen for judges working in various courts. Officers, secretaries working in various state level secretariats or in secretariat attached of various ministries and Parliament of India are working in general as agent and broker for ministers. Politicians of various political parties who are effective and master in manipulations are working as agents for various MLAs and MPs. District level political leaders are flatterer of state level leader of a political party and state level leaders works as yes-men of central level leaders. To add fuel to fire , even IAS officers ,IPS officers and armed forces have become agent of business community in some way or the other. Anyone can imagine the fate of the country when protectors are not trustworthy.

In common terminology they are called as lobbyist or flatterer or managers or chamchas but for all practical purposes they are actual fate makers.

It is caucus of these flatterers who surrounds powerful leaders in all offices, banks, Income tax offices, secretariats and at all places where powerful persons are sitting. It is these flatterers known as Godfathers who manage transfer, posting and promotion of staff who works as per whims and fancies of lobbyists. It is these lobbyist or game players who manage transfer of honest workers who hinders their corrupt path to remotest place, to critical place or to a place where he or she becomes ineffective in all fields of his life. It is these lobbyist who manage torture to good workers who create impediments and it is they who manage even killing of such hard core honest performers. It is these lobbyists who can make or mar a government for their self interest.

Neera Radia is not alone working as lobbyist in corporate world but there are hundreds and thousands of such lobbyists active in practically in all offices. Even top ranked DGM, GM, AGM.CM in a Public Sector bank has to approach one or the other lobbyist to get fastest promotion and cream posting. General Managers have to contact lobbyist sitting in Banking Division or Minister of Finance like prominent leaders / politicians for getting the post of ED and CMD of a bank. Low level or junior officers cannot dream of upward movement in career path until he or she is a good flatterer of his boss or until he or she is ready to offer some precious gifts to his bosses despite all merit-based-policies-for- promotion in force. Retired politicians have to contact top leaders to become director in a PSU and so on so forth. One has to invariably contact a lobbyist for getting his work done easily quickly and with minimum possible expenses.

In eighties one great lobbyist namely Harshad Mehta was caught in bank scam .But in this age of reformation there are hundreds of person working like Harshad Mehta and manipulating Stock Market as per their sweet will and SEBI is silent spectator of all these scandalous transactions and killer speculations in stock market till it assumes the form of a scam or scandal. One after other exposure of scam or bribe led lending or fraud takes place, still our FM tells that Indians banks have enough system control mechanism in place. So many banks have been closed in last 20 years (i.e. in the reformation era) or merged with some stronger banks and still government claims that banks in India are well administered.

In such an environment it does not look astonishing and unexpected incident when one say that Reddy brothers succeeded in tax evasion of Rs.80.00 crores in mining in Karnataka or Mr. Raja OR Madhu Koda or Mr. Kalamadi or any such corrupt officer could accumulate wealth worth hundreds of crores of rupees. It is not astonishing that declared bad assets in banks are as much as  one lac twenty thousand crores and at least three to four times of this amount is though bad but hidden in balance sheets of the banks.

In fact most of the government officers and ministers are busy in making money some way or the other. Even media men are indulged in such corrupt game in their own style. This is the picture of Indian democracy where rich is growing richer and poor are becoming poorer. Rich people are hiding their money in the form of land, gold, silver and diamond like precious goods whereas the poor common men are unable to afford their daily bread, cloth and a house to live in.

Lobbyist can approach all powerful centers whereas common men are fear of accessing any office where he can expect his work done or where he can knock the door to get justice.

It is ridiculous to know that RBI has asked details from bankers who sanctioned finance to companies currently under investigation by CBI to punish the culprit top ranked bankers who financed to telecom companies by taking bribe. It is nothing but a reluctant surgical operation undertaken by RBI and not body scan of banks which should be undertaken by RBI to stop corrupt practices prevailing in the banks where top ranked officials like General Managers are caught taking bribe for lending.


Scam of value of hundreds and thousands of crore rupees cannot take place without the support of hundreds and thousands of persons in the system. Few cases of scams and corruptions which are exposed in public by media are not aberration of the system but exposure takes place only when there is dispute in sharing of bribe money among corrupt officials or when bribe giver remains unsatisfied even after payment of bribe. Exposure of scam takes place when desired work is hampered even after payment of bribe to ministers and officers due to change of guard or change of powerful lobby or change in policy due to some reason or the other. Otherwise it is the corrupt system which has been developed by politicians and rulers of the country since independence.

Solution:

Root cause of all corrupt practices is whimsical transfer, arbitrary promotions of junior staff by top rank officials to ensure a team of yes-men and flatterers around him so that none can raise the voice against his misdeeds and none can be whistle blower because everyone gets their due share.

Obviously no use of discretion in the matter of promotion and defined policy on transfer and posting of staff may remove fear from the minds of good workers and ultimately culture of flattery will end which is considered to be the root cause of all maladies. Annual Appraisal of staff or Interview of staff for promotion gives ample opportunity to top ranked officers to make or mar the career of his juniors. Obviously to get rid of fear one is forced to resort to flattery to bosses at the cost of quality of work, honesty, sincerity and devotion. As such seniority based promotion should be made mandatory for all government offices, banks and other PSUs. As far as I know seniority based promotion takes place in central government services , but banks are still following  the policy of whims and fancies of top executives for promotion and posting which has vitiated the entire work culture in banks.

Besides quickest action on public complains in police and in court may create fear in the minds of evil doers. Severe punishment to corrupt person in the shortest period of time at least to person in high echelon of the society and to person sitting at top posts may have demonstrative effect down the line.

Unfortunately in our country low level staff are made scapegoat in all cases of corruption committed actually by top level officials and ministers. In my opinion award to good workers and punishment to bad workers is not happening in practice though all policies are framed keeping such good ideas in mind.

Action Taken Report on all vigilance inspection activity undertaken by various department may prove that even vigilance officers have earned huge money by closing the file or by awarding symbolic punishment even in case of grave and serious lapses of omission and commission.

Last but not the least , President of India may promulgate an ordinance to ensure seniority based and time bound promotion, to restrict whimsical transfers of government officers immediately after change of guard and to ensure transparent transfer policy and its honest execution as a new year gift to send a clear cut message to working class that there will not any injustice with those who are loyal to the organization they are associated.