India's CBI charges 9 in Satyam fraud

The New York Times reported today that India's Central Bureau of Investigation has brought charges in the Satyam Computer Services fraud case

According to the New York Times, India's Central Bureau of Investigation (the rough equivalent of the U.S. FBI) has completed its investigation of the outsourcing company Satyam Computer Services and charged nine people: six people from Satyam Computer Services, two suspended auditors from PricewaterhouseCoopers, and an outside adviser. The charges are "criminal conspiracy, cheating, cheating by personification, forgery of valuable security, forgery for the purpose of cheating, using a forged document as genuine, falsification of accounts and for causing disappearance of evidence."

When this story broke back in January, I hazarded an opinion that Satyam's fraud was a black eye for Indian outsourcing. If the fraud was limited to Satyam and the CBI has been thorough, then perhaps only Satyam was involved. I still wonder about the other Indian outsourcing companies, however: If financial oversight was lacking at Satyam, how are the other Indian outsourcing companies demonstrating that they are above reproach?

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