Whistleblower auditor being harrased!

After auditing the books of Reliance Communications ( for those not aware of Reliance, it is the GE of India; a big company diversified into a lot of industries) a Indian government appointed accounting firm , Parakh & Co got a shocking response. The company has sought protection from the Indian Government against a criminal case filed by the Communications Industry Giant.

The firm stated that they received a notice from the police to surrender the audit paperwork related to their audit of Reliance.

Reliance’s story is that they had written in 2009 to the Telecoms Ministry and the Institute of Chartered Accountants of India regarding the auditor’s report. They had asked the communications ministry to reject the special audit on it by Parakh & Co and alleged that the report ‘was issued for malafide purpose, based on uncorroborated facts and done without any discussions with it (RCOM)’. The telco also stated that ‘the entire report was drafted for the purpose on sensationalising irrelevant matters’.

Whether the allegation of the auditor is true or not one cannot ignore the findings of the audit report. The audit report found that Reliance Communications had under reported revenue for two years, causing huge losses to the government in terms of license and spectrum fees and also corporate taxes. Based on the finding the government might fine the behemoth for evading those fees.

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$2.5M for the Whistleblower

Metropolitan Life Insurance Co. (MetLife) has been ordered to pay a whistle-blowing former broker, Ronald Roganti about $2.5 million in damages. The ruling states that after the broker had raised concerns about shoddy business pracitices he was mistreated. 

Roganti’s claim states that in 1999 he started to become aware of unethical practices and reported them to various executives as well as regulatory agencies. But instead of an inquiry being set up into these practices, his compensation was reduced as well as he was threatened to be terminated.

The case definitely is a step in the right direction. And with the Dodd-Frank Act having passed, which provides even stronger support to whistle blower protections, I wouldnt be surprised to see more of such cases in the future.