:: Jayanthi Natrajan

Go after Satyam, not politicians

Jayanthi Natarajan

EVERYBODY HAS their own take on l’affaire Satyam… the perspective naturally coloured by where they stand. As a politician it has been an incredible education for me to watch and absorb public discourse on the subject. The first thought that struck me was if this had been a political scandal, they would have fed all politicians to the sharks. In this case, the restraint exhibited by newspapers, industrialists and, most notably, the chatterati, was remarkable.

While whole-heartedly welcoming restraint, I cannot but remark on this patently discriminatory treatment. There was shock, horror and a sense of disbelief as the scale of the disaster sunk in. The Satyam imbroglio managed, in one fell stroke, to do what the terrorists in Mumbai failed to accomplish — denting investor confidence in India.

Just a short while ago, we were justifiably proud of our regulatory systems, and how they had kept us relatively safe from the dramatic economic meltdown which has paralysed most of the world. We confidently asserted that due to our conservative and careful systems, our basics were sound, and nine per cent growth in India would happen, despite the meltdown mode. Conversations everywhere reflected pride in our standards of corporate governance. That image of India has taken a severe beating. The mushroom cloud of deceit and fraud looms over our economy and only time and the most determined efforts by all relevant institutions can unravel the many mysteries of the Satyam affair.

Meanwhile, it was no great surprise that after an initial breathless denunciation of Satyam chairman B. Ramalinga Raju, media and public attention has quickly swung back to once again blame their favourite whipping horse, the politician. Never mind that one of the blue-eyed boys and icons of the much-vaunted Indian IT success story confessed to cooking up books for over seven years; never mind that various regulators, all senior professionals and bureaucrats, failed to do their job; never mind that the independent directors on the Satyam board failed to see the writing on the wall. The blame as usual passes to the politician. This, at the very least, is a distorted perspective.

It’s imperative to state the standard disclaimer: Yes, if it is found that political influence played a part in the massive fraud perpetrated by Satyam’s promoters, then such influence must be identified and exposed. Whichever politician has been party to this fraud is liable to be punished in the same manner as any other guilty person. However, my problem is that blaming politicians for every malady that besets our society and economy, has become very convenient and popular. But this put us in imminent danger of missing the wood for the trees. Surely it should be our endeavour to reform the section of society or economy which is ailing or is corrupt. But if the political class alone reforms, and corrupt industry or bureaucrats remain the same little will change.

The time has come to view our democracy, and our economy, in a holistic manner. We need to dispassionately look at all the flaws in our system and tackle them with a firm commitment. Fevered denunciations of just one section of society would be woefully unproductive. I do realise that there is a degree of comfort in blaming the most convenient person instead of taking the trouble to get to the root of the matter and take action to deal with the person or section of society that has been the cause of the problem. However, knee-jerk reactions are not a luxury we can sustain any longer. Sniping against each other will only cause, enhance and hasten the meltdown of our economy and polity.

Satyam should be a wake-up call for all of us to take off the yellow-tinted glasses of our prejudices and collectively identify the common enemy: corruption, dishonesty, non-performing sections or disruptive elements in our system. Ideally, of course, our economy and its growth ought to be above, and immune to, political change. In practical terms, however, all of us are aware that politics drives economics and economics drives politics. Nevertheless, it can still be our united endeavor to ensure that despite the inevitable politics that may drive our economy, the basic goal of growth and development are never sacrificed at the altar of electoral gain. In other words, while the methods and action plans of different political parties may reflect their political credo and election manifesto, all political parties and every citizen of India should make a firm resolve to fight corruption and fraud. Not just politicians, but captains of industry, bureaucrats, small traders and every citizen must shoulder this responsibility.

The Satyam affair has been a traumatic and shameful experience for India. It is sobering to reflect that the world now questions India’s integrity and prospects as an attractive investment destination. While it is absolutely true that Satyam is neither the first nor will it be the last financial scam to hit India, the fact remains that this is a crucial time for our economy and the scandal could not have hit at a worse time — in the midst of a global meltdown, India was being projected as the one safe place where prudent policies and hugely talented manpower would ensure safety and productivity of investment. This projection is now severely damaged. Scandals such as the Madoff saga are happening, as we speak, in the USA, but it is important to remember that whatever happens elsewhere in the world India has more to prove, and more to lose.

It is of utmost importance for all of us to put our shoulders to the wheel and not rest until our reputation is restored and our economy and democracy are back on a safe trajectory of growth.

Jayanthi Natarajan is a Congress MP in the Rajya Sabha and AICC spokesperson.

The views expressed in this column are her own