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Colin Powell

How the Rot Started

US Secretary of State Colin Powell recently called US President George Bush, Jr. with some good news and bad news about UN inspections for Iraq’s weapons of Mass Destruction (WMD), “Mr President, the good news is that Saddam Hussain has agreed to unconditional across-the-board inspections, the bad news is that he has asked for “Arthur Andersen” to carry out the inspections.” That joke sums up the backlash of the ENRON financial scandal that has afflicted a score of previously untouchable US blue-chip multi-billion dollar companies like Worldcall, Tyco etc, almost all major international accounting firms like “Arthur Andersen” are under pressure because of “creative accounting” and/or fudging financial numbers. When World Bank President Wolfensohn accused the Ms Benazir Regime in 1996 of fudging statistics, he was being discriminatory, almost all governments are guilty of this “soft” white collar crime of inflating their revenues and masking their expenditures, India regularly puts military pensions and border fortifications under innocuous “Heads” other than “Defence Expenditures”. In this new world of accounting “glasnost” it is becoming harder to mask the financial shenanigans of the kind that this country (and the world) has been witness to.