Why is ICAI soft on PWC ?

In the Satyam saga, one thing is defying logic. Despite a prima facie indication that PWC might have been part of a fraud in which lakhs of public investors and thousands of employees are facing a huge financial lsos, the Indian Chartered Accountant’s Association (ICAI) appears to be going soft on PWC.

It is recalled that it was PWC, Hyderabad which was earlier involved as an auditor in Global Trust Bank which failed  and ICAI enquiry is reported to have not been concluded even after 4 years.

When ICAI was questioned on action against PWC, it has been only making a political like statement that “Action will be taken”, “PWC may be suspended” but “Procedures have to be followed” etc.

ICAI has also raised objection to the Satyam Board appointing KPMG to go through the accounts and re state the profits of Satyam.

Even the Chartered Accountant’s Community itself asked for immediate suspension of PWC after the Satyam fraud was brought to light but ICAI seems to be un willing to take any punitive action against the firm.

It is also stated that in the Satyam records the PAN number of PWC is indicated wrongly.

It is inconceivable that a CA firm would make such a mistake as to misstate it’s PAN number unless it is done deliberately to facilitate some misdoing.

From the developments seen so far, it would not be in correct to say that PWC deserves immediate suspension from its activities in India. RBI has rightly advised Banks not to use the services of PWC and there is a need for Income Tax authorities to re check all accounts audited by PWC in the last few years.

It may also be necessary to initiate a CBI enquiry on the operations of PWC in India.

If ICAI is trying to shield PWC, it appears that there could be vested interests in ICAI who are trying to help the firm. Public would like to know who in ICAI is interested in bailing out PWC and why?