IPL mania or IPL Scam

Papers are full of how an individual has made a mockery of system. There are accusation of Money Laundering, Bribing, Arm Twisting, Pressure Techniques, Threatening. Already a minister has resigned, One beneficiary of ‘Sweat Equity’ has offered to return the sweat shares.
All this throws up some Interesting questionss:
1. If one cannot return Sweat Equity once issued, then how come it got issued when it cannot be issued for a year after constitution of a company?
2. One investor had already sold his shares long back ago at the same price for which he acquired the original shares. Will this action can be considered as gifting of shares or surrndering of capital which need to be reduced or under table transactions or investor has been forced to sell back the shares by somebody who is ignorant of Tax laws?
3. What the BCCI was doing when IPL is part of BCCI activity? Is BCCI was sleepping because IPL is generating lot of money and fruit of the same is being eaten by the office holder.
4. Will BCCI would come clean and say that all IPL was without its approval?
Or all is result of same old GREED. As long as money is being made, one need not pay attention to checks and balances.
Interestingly this episode also bring the Auditor (both internal auditor and external auditor into focus).
If a company is paying some money to another company, it can be in the form of payment for expenses or by way of loan or on behalf of a company.
If its expenditure, some benefits should accrue to the company. If its loan, the balance should stand in the books of the company. Did any of the auditors has checked whether such a large sum paid (US$80 Million) is in fact expense then where is the benefit? If its loan, then any confirmation is available from other party?
In any scam, the focus always come back to Internal Auditor.
Can someone tell me whether BCCI has any “Internal Audit” system? if yes then where are reports?
Manoj
23-Apr-2010