India has been importing U.S. jobs for some time. It appears they imported another American corporate problem, fraud.
Indian offshore outsourcer, Satyam Computer Services, admits to falsifying books:
The chairman of India’s Satyam Computer Services resigned on Wednesday after confessing to fixing the IT outsourcing company’s books for the past “several” years, the country’s first major fraud case to emerge following the global financial crisis.
In a letter to Satyam’s board, B Ramalinga Raju admitted wildly inflating Satyam’s margins to paint a picture of good performance and retain his management position, in one of the worst scams to have hit India’s outsourcing sector.
How bad is it? Looks like a reported 24% profit margin is actually 3%.
In CBS Market Watch they ask Is Satyam fraud 'India's Enron'?
Angel Broking analyst Harit Shah dubbed Satyam "India's 'Enron'", adding Satyam's misrepresentation constituted "one of the biggest-ever frauds in Indian corporate history.
His problems were compounded last month when the World Bank barred Satyam from business, citing "improper benefits" given to Bank officials. Satyam has demanded the World Bank retract those comments.
But nothing prepared investors for Raju's stunning revelation of years of inflated profits based on non-existent assets. He acknowledged no other board member had been aware of the financial irregularities, and insisted he had not profited from the company's inflated results
In the New York Times piece it is noted that Satyam Computer Services has over 1/3 of U.S. Fortune 500 companies as customers with their labor arbitraging contracts, including the United States Government
Anyone want to tell me why we have federal dollars going to an Indian offshore outsourcing firm?
Satyam has been under close scrutiny in recent months, after an October report that the company had been banned from World Bank contracts for installing spy software on some World Bank computers
Oh even better, they pay an Indian offshore outsourcer to install spyware on the World banks computers? Did they install spyware on U.S. Federal Government computers???
Here's something most amusing, Satyam in Sanskrit means truth.