Kofi with Rajat Gupta. Gates too

We talk about corruption in India, of sycophancy, of using influence. We are ready to take those who commit financial irregularities to court. This is as it should be. 

After the farce of the 'Friends of Rajat Gupta' cabal, it seems to be the turn of the international frat boys club to come forward to support Gupta, who is being tried for insider trading. In what is a clear case of pushing in his favour, many prominent people have asked the judge in the US to show fairness. This is extremely insulting to the judiciary as well as being ridiculous and arrogant. According to a report:

Microsoft Corp co-founder Gates, in one letter among about 200 written to US district judge Jed Rakoff, wrote that he wanted to help “round out Rajat’s profile as you consider the appropriate sentence for him.”

The judge would know his job, but Gates has got his reasons. Those not blinded by his philanthropy would understand how these things work. The report says that when Gupta chaired the Global Fund to Fight AIDS, Tuberculosis and Malaria, Gates became acquainted with him. Is this reason enough for him to have the temerity to write that “many millions of people are leading better lives -- or are alive at all -- thanks to the efforts he so ably supported”? 

I do know of hardened criminals who help social causes -- to make use of tax benefits, or to appease their guilt, or because they truly believe in giving. Does it take away from the crimes they commit? Millions of people benefit from employment in the mafia and with underworld gangs. In times of recession, this is probably crucial to their existence. Will anyone be permitted to speak up for these gang leaders?

Bill Gates' Foundation, its good work notwithstanding, is only one among the many that support the underprivileged. Several NGOs and international agencies too work relentlessly for these causes without as much fanfare. The attitude of, "Look, we save lives" is not only half the story; it does not give those who offer financial assistance the right to believe they can be absolved of anything else they do that is suspect or anti-social. 

The world cannot be held accountable to Wall Street.

  

The timing of the letters is disconcerting because it is close to the date of the final court verdict and also the US elections. Well-known industrialists and academics are not the only ones to have pitched in with their bludgeoning tactics garbed as good wishes. 

Former UN secretary-general Kofi Annan has written to the judge:

“I urge you to recognize Rajat for the good he has done in the world, to give him the credit that he deserves for helping others and to take into account his efforts to improve the lives of millions of people.”

Perhaps, these people do not realise that insider trading is not only about a few million bucks shared between friends. The ramifications have a trickle-down effect that pinches everybody in the long run, and that is precisely what has happened to the US economy, that snowballed and reached half the world. 

This selfish bunch has no ethical right of talking down to the beneficiaries of their wealth simply because of who they are. It is such bluster that makes one wonder about their intentions.

I was told that the American justice system in matters of financial scrutiny is above-board. It would be prudent for the court to call upon Bill Gates and Kofi Annan, and whoever else has written to them, to appear as wtinesses providing evidence that Rajat Gupta is not guilty of insider trading, for which he is being tried. He can sing lullabies, put in dollars in donation boxes, and make the world a better place from his room with a view. That is not what the case is about. 

He may well be let off, and his friends can then celebrate with bubbly and talk of saving the lives of millions. Until then, it would help if they stayed away from matters they have chosen to ignore.

(c) Farzana Versey

My earlier post on Rajat Gupta's Indian friends.

Friends and Foes: The Case of Rajat Gupta

'Friends of Rajat Gupta' is not the sort of thing you’d read about, much less imagine it as a movement.  But in the closed world of the famous rich, protecting one of their own is crucial in some ways to their own reputation.

The case is pretty simple. Gupta, former head of McKinsey & Co. as well as a director at Goldman Sachs and Proctor & Gamble, gave away vital information to fund manager Raj Rajaratnam involved in insider trading that earned him what we in India would call 'oopar ki kamaai' (in the literal sense topped earnings, euphemism for illicit money).

On Monday, Gupta's trial began in a Manhattan federal court. Those who understand financial skulduggery and the legal machinery that might pin it down believe that the courts won't be able to prove a thing, unless Raj Rajaratnam who has been charged guilty last year testifies. With evidence.

Will the Friends of Rajat group play any role? Is their testimony of his character of any consequence? Since the trial is on and the case is subjudice, is their public display of support not against the law and tantamount to interfere in the legal process?

Mukesh Ambani, Adi Godrej and Deepak Chopra have been certifying his impeccable credentials.

Dr. Chopra, who is on the witness list, has said:

“I have known Rajat Gupta for 25 years and am pleased to call him my friend. Rajat has devoted many hours working in fields that are close to my heart -- particularly in promoting global health through the eradication of infectious diseases."

Without getting into the merits of the case, I'd like to pose a few general queries that could apply to any such case, in another country or India:

The open letterchallenges the press and public portrayal:

"The REAL Rajat known to us over several decades is completely at odds with the public narrative. To our collective knowledge which spans a lifetime and covers hundreds of friends Rajat has:

1-always upheld the highest of ethical standards;

2-been judged, without a chance to tell his side of the story; and

3-been mischaracterized by people who have little or no knowledge of him."


Most of these people have not worked with him. What we know of people through personal interaction could be at odds with their professional persona and aspirations in an entirely different environment.

The 'Real' can also be a perception.


1. Ethics is abstract territory, more so in the realm of business. A few 'tips' to a friend might be seen as ethical in the narrow sense. It would be a bit strange, though, to imagine that a Wall Street veteran wouldn't know how it might be used.

Did he benefit from it? Let's just say that if there's nothing like a free lunch, then his luncheon was a large spread, at the very least. It could be a symbolic gesture or symptomatic of a malaise.


2. He is given an opportunity to put forward his version. It probably causes consternation that this is being done in a court and not across the table, or under it.


3. People who are under the scanner for misdemeanours are judged on those and not based on their history.


It is arrogant for public figures to arrogate to themselves the right to dismiss characterisation based on their 'social' knowledge of a person. Besides, philanthropy is often refuse if not a refuge.

It bespeaks of scant respect for law, for propriety, and even for ethics.

Rajat Gupta may or may not be innocent, but this sort of gathering of support is an indication that perhaps there is more at stake than one man's tip-off to a hedge fund manager.

It is particularly disconcerting because the Occupy Wall Street movement that spread throughout America brought people to the streets who had suffered from just these kinds on insider deals.

Is Gupta a victim, a fallguy? Possible. But the lobbyists will speak up for him. And they might win because the good American Indian is vital for politics. A bit of whispered trade secrets could well be hushed up if the kitty is replenished for some loose 'change'

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A detailed look at The Wall Street Fall