The Satyam episode of fudging accounts and siphoning off cash is not possible in public sector enterprises, which have strong internal checks and balances, Indian Oil Corporation Chairman and Managing Director and head of a PSU body Sarthak Behuria said here.
"No way near it. We have very strong internal audit, then we have statutory auditors... We have the highest level of corporate governance," Behuria said when asked about the possibility of a Satyam-like event in public sector enterprises (PSEs).
Behuria, who heads the Standing Conference of Public Enterprises (SCOPE) said, the PSEs are subject to strong internal and external vigilance besides following rules of the Securities and Exchange Board of India.
But then, Satyam Computer Services had world-known auditors? "What was the selection process?" he asked.
On the role of independent directors, the SCOPE chairman said their selection process needs to be improved. "Better selection criteria should be there. We should go deeper" for choosing independent directors from a larger pool of talent among consultants and educational institutions like IIMs.
However, more PSEs should be listed in the stock market to ensure further tightening of corporate governance. "The government should make efforts to list as many PSUs as possible so that they can have more independent directors. Profit making, performing companies should get listed," Behuria said.
He said there were good examples of good corporate governance not only in PSUs but in the private sector. "There are examples where India can boast of very good governance in companies, both in the private and public sectors," he said.
