Fraud seems to be increasing, especially by powerful and wealthy individuals. Many large fraud cases have involved high-level executives, both globally and in India. While common people work hard and honestly despite difficulties, those with money and power are more likely to commit fraud due to greed for more influence, wealth, or fame. When fraud occurs at high levels, it often impacts many innocent people as honest employees can lose their jobs or face harassment. Ultimately, taxpayers often bear the costs when companies fail due to executive fraud. Stronger checks and balances are needed to curb fraud by top managers, but honest executives often remain silent out of not wanting to confront peers. Unless those with power to stop fraud take action

1. FRAUD
It seems world is becoming full of frauds & cheaters. It is becoming apparent that most
of them are from Rich, Powerful & from higher positions. We have number of
examples. At global level there was Enron , Barings etc. At our home we had
Kingfisher, Satyam & now we have Nirav Modi & Rotomac Pens. Believe me these names
are in public domain because the quantum of fraud is on very large proportions but
there will be many which has not come to limelight where fraud has taken place but as
The volume of amount is not bigger as the publicly known ones it is still under wraps.
A common employee or a common citizen goes on working hard with fear of law &
does everything as per the law. Why most of these commoners who has little in their
possession are satisfied one & goes on living life working hard & not indulge in frauds
in spite of facing hardships in daily life. Even in our Indian movies most of the time
story goes like a common man face so much of hardship that when he or she is at the
brink of breakdown, they commit small frauds. What is it then a powerful person with
all the luxuries of Life commit fraud. Power , Money & Glamour , these three are
biggest spoiler of human mind. All these three vices are interconnected, specially the
first two. Human nature is such that it wants to rule others. There are only two ways by
which you can rule others, Money or Power. If you are powerful then you can generate
money & if you have money then you can buy power. Greed is hidden vice which is the
driver of other bad vices. It is the greed to become powerful, it is the greed to become
vulgar rich or it is the greed to become famous which forces people to become corrupt.
Why it is so that mostly people at powerful positions commit frauds. To increase more
power, to retain power , fear of losing power. When people at higher position commits
fraud then the effects are manifold. It effects life of many. Suppose a vice president of
a big corporate commits fraud. Will he or she do it alone, No. there will be group of
people from different department who will help him or her willingly or unwillingly. Now
those who will help the fraudster willingly becomes power center in their respective
department. They will try to demoralize or harass honest employees around them
because they are future danger to them. Gradually good & honest employees will
become disillusioned & their interest in keeping good work will diminish. They will be
hounded time to time for no reason, they will not be given promotion. These chains of
event will affect the profitability of Organization. One day organization will collapse,

2. The fraudster will leave the organization & being in top would easily get employment
in other companies. The poor honest employees may lose their jobs due to company
making huge losses. Is this not happen in Kingfisher , Enron etc. In Current scenario of
PNB frauds , from where the losses would be recovered. Ultimately Govt. has to get this
losses compensated by putting more taxes to common man.
Why these Fraudster gets away so easily. Why there are no check & balances. The
blame lies on completely on People sitting on very top positions, like owners of the
companies, Board of directors, Promoters. Why a bad performer at top survives but a
bad performer at lower rung will lose his increment or maybe job. Most of the
promotors have a belief that a CEO can only bring the success to the organization. It is
he or she only responsible for the success of organization. It’s a myth. This thought
process gets abnormally high Salary to the top management at the cost of middle &
lower management. You take example of any organization The Gap between The salary
of top management & lower one is so big that it is unimaginable. A organization works
on combined efforts of employees at all level, nobodyis inferior to anyone. Each
employee has a purpose & a important role to play. Recently it was in the news that
some top officers of IT companies have made a secret pact that they will Fix a slab &
no new employee will be paid more than the slab. What is this, cartel match fixing. The
problem is in most of the organization there are no check & balances for the top
management. A HRD departments becomes Mouthpiece of top managers. The role of
HRD head is vital but how many of top HRD managers take a stand against Corrupt Top
Executive. They will spare no time in suspending or sacking a junior employee on fraud
but would remain a mute spectator against a corrupt top executive. My years of
experience tells me, whenever you find squeezing the wages of middle & junior level
employees in any organization, be sure there are increase in the spending of Top
management earnings & expenses. The problemis not that all top management
personals are corrupt, actually most of them are honest but these honest top officials
most of the time keep silence & does not like to antagonize their compatriots. Fraud
done at top level is very dangerous because not only it destroys a company’s
Reputation & credibility along with financial crisis but for me bigger than that it hurts
the livelihood of so many innocent upright & honest employees. Unless those who have
power to stop this menace wakes up, this will go on & lots of people will lose their job
for no fault of them.

3. Saumitra Yadav
22/2/2018