STATE OF ICAI discussed

DD Rathi, Group Executive President, Aditya Birla Management Corporation and Sunil Talati, Former President of ICAI - year 2007 & 2008 and Senior Partner at Talati & Talati, discuss the issue at Tv show "The Firm" on CNBC-TV18
Published on Sat, Dec 12, 2009 at 13:16
Source : CNBC-TV18

Excerpts:
Q: It has been a really difficult year for the ICAI. What is going on?
Rathi: I take Satyam and Booth capturing as one-off incidence. I am not worried that Satyam happened because not a matter of merely the institute. It is a question of very well organised fraud.

Q: Are you saying it’s a crisis of leadership in this specific instance and not a systemic issue?

Talati: I would say this is a joint responsibility of the entire council.

Q: You brought up quality of the professional. CB Bhave, M Damodaran, look at the Insurance Regulatory and Development Authority (IRDA) regulators, they all have long track records of public service, government service all of that. What is the track record of any kind of regulatory service that any of these ICAI Presidents have? They are just practising chartered accountants. In fact the term of one year Vice President and one year is President means that they all very know before they become Vice President and President that they have only two years in a regulatory position, post which they are going to go back to private practise. I am told by many council members included that much of their time is spend furthering their own private interest because they are going to go back to private practise?

Talati: I would just not tolerate this remark. Let me clarify very clearly most of the council member elected are sacrificing their family life, they are sacrificing their professional practise. I am the sufferer; I know how much I have suffered. You are sighting exceptions as a set standard. Let me tell you in journalism – we have yellow journalism, all TV or all media are not bad. So, one particular person or group of people doing something not to the satisfaction of many cannot be blamed on the institution as a whole.


Q: How are we concerned with the quality of regulation 15 years ago?
Talati: There is no question of conflict of interest. Chartered accountants are the best people to govern this and the time has proved; the regulators, the challenges have proved.

Q: Do we have quality members according to you right now? What do we need to do to ensure we have quality members?

Rathi: We could make the judgement but let me tell you how we can improve the process. Secondly, let us not spare the Electoral College itself. I cited to you one famous quote that “Citizens of the country get the type of government they deserve”. Similarly, the CA members will get the type of council members they deserve.

Q: I am not, I am asking you, do you agree or believe that it has to change- Mr Talati is saying very clearly that nothing needs to change except the attitude.

Rathi: Not attitude. The whole process has to be reformed. I am always against reservation but look at the participation of members in industry. I blame myself partly for that is zero.


Rathi: I think the process is the regulations, the rules all that are time tested. The problem has been with implementation and modifying them in line with the changing times. I think council has to rise to the occasion, rise above their own personal interest, if any I do not want to go into debate that they have or they do not have and look towards development of the professional, look towards bringing back the profile the professional had few years back and enrich it.

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