Waterhouse gets 2-year ban in Satyam case

MUMBAI: Markets regulator Sebi on Wednesday banned global auditing firm Price Waterhouse Network from engaging in audit work with any listed company for two years starting April 2018 for its role in the Rs 8,000-crore Satyam scam that took place in 2009.
The regulator also asked PW to pay Rs 13.09 crore, along with interest at 12% per annum from January 2009 (approximately Rs 14 crore).
Two former PW partners, S Gopalakrishnan and Srinivas Talluri, have also been barred from issuing audit certificates to listed companies for three years. The two chartered accountants were responsible for auditing Satyam when the fraud came to light.
Price Waterhouse Network is auditing arm of PWC India.
"Listed companies and intermediaries registered with Sebi shall not engage any audit firm forming part of the PW Network, for issuing any certificate with respect to compliance of statutory obligations which Sebi is competent to administer and enforce, under various laws for a period of two years," the 108-page order said.
The ban will come into effect from financial year 2018-19 and won't affect the auditing work for the year 2017-18.
Late Wednesday evening, Price Waterhouse Network issued a statement saying, "We are disappointed with the findings of the Sebi investigations and the adjudication order. The Sebi order relates to a fraud that took place nearly a decade ago in which we played no part and had no knowledge of. As we have said since 2009, there has been no intentional wrong doing by PW firms in the unprecedented management perpetrated fraud at Satyam, nor have we seen any material evidence to the contrary. We believe that the order is also not in line with the directions of the Hon'ble Bombay High Court order of 2011 and so we are confident of getting a stay before this order becomes effective."
In September 2017, PW had moved a consent plea with Sebi to settle the investigations relating to its role in the Satyam scam. In 2009 too, the firm had filed a consent plea with Sebi which was rejected by the regulatory body.