Showing posts with label whistleblower. Show all posts
Showing posts with label whistleblower. Show all posts

Thursday, July 05, 2007

Is Ashok Idnani's Life in Danger after Blowing the Whistle on Pfizer?

Based on today's story in the New York Times, Ashok Idnani, former finance executive for Pfizer in India, should be very careful. You can read what I've written about Idnani's ongoing story on my blog here.

And this is the article in the New York Times today:

In India, Protecting a Whistle-Blower



J. N. Jayashree began blogging in the hopes of finding allies in the battle against corruption and violence.

By ANAND GIRIDHARADAS
Published: July 5, 2007
The New York Times

MUMBAI, July 4 — J. N. Jayashree did not want her husband to die the death of an Indian whistle-blower.

Four years ago, India was rocked by the murder of Satyendra Dubey, a government engineer who exposed corruption in the national highway building program. Two years later, Shanmughan Manjunath, a manager at a state-owned oil company, laid bare a scheme to sell impure gasoline. His body was found riddled with bullets in the back seat of his car.

To Ms. Jayashree, her husband, M. N. Vijayakumar, appeared to be following in their footsteps. Mr. Vijayakumar, 51, is a bureaucrat in the southern state of Karnataka, and he has a penchant for chastising colleagues who supplement their modest salaries with bribes, kickbacks and garden-variety pilferage.

In recent months, his chastising ruffled feathers at high levels, and he began seeing the signs often directed at whistle-blowers in India: He was pushed around the civil service like a hockey puck, switching jobs seven times in the last nine months, most recently on June 26.

As her husband made powerful enemies, Ms. Jayashree began to fear for his life. And so she devised an unusual ploy to protect him: she blogged.

In the YouTube era, she reasoned, it is harder to kill a man who has a bit of Internet renown.

“We’re creating a fortress around him — a fortress of people,” she said in a telephone interview. “I wanted to inform the people that this is happening, that my husband is a whistle-blower, so that it becomes the responsibility of every citizen to protect him.”

The result is a small-scale test of whether India’s technology revolution, which is empowering tens of millions, can tamp the corruption that hinders India’s ambitions. Transparency International, a Berlin-based group that monitors global corruption trends, ranks India below Colombia, Bulgaria and 67 other countries in its most recent index of corruption. In a 2005 study, it concluded that Indians pay more than $5 billion a year in bribes.

“The people who are supposed to be controlling corruption and fighting on behalf of the poor, they are sucking blood out of the poor,” Ms. Jayashree said in the interview.

She built her Web site, fightcorruption.wikidot.com, with help from her son, a doctoral student in computer science at Delaware State University. On the site, she chronicles her husband’s case and criticizes the government. An aficionado of India’s new right-to-information laws, she has acquired and uploaded reams of documents. She updates the site nearly every day and has received responses from around the world, including many from Indian émigrés who say they left the country because they found it too corrupt. Government officials in predicaments like her husband’s have sought advice.

Arun Duggal, a senior adviser to Transparency International, called the Web site pathbreaking for India.

“For an individual to use the powerful media of the Internet to take a stand against corruption, to expose wrongdoing, to build a campaign and a following, I think it’s the first time I’ve seen it,” said Mr. Duggal, who is based in New Delhi.

Mr. Vijayakumar, in a telephone interview, said he had seen corruption since his first days on the job. He said he had threatened to resign five times and had filed about 25 formal complaints detailing specific instances of corruption to P. B. Ma- hishi, the highest-ranking civil servant in Karnataka, which includes the technology hub of Bangalore. He said his complaints were rarely heeded.

The complaints have not been made public, but in the interview, Mr. Vijayakumar offered an example of how he said officials operate with near impunity: In the government agency that oversees state-owned enterprises in Karnataka, he said it was routine for officials to invent imaginary losses, and to solicit — and pocket — extra budgetary allocations to recover those losses.

“People at the top are involved, so they hope people will forget about it,” Mr. Vijayakumar said. “But I don’t forget.”

Mr. Mahishi, the civil service chief, conceded in a telephone interview that corruption was “everywhere,” in his own bureaucracy and in bureaucracies elsewhere. But he criticized Mr. Vijayakumar, calling him a lazy, ineffective worker who often skipped meetings and stayed silent about corruption for years before suddenly recoiling at it.

“Why did it take him 26 years to become active on the cause of corruption?” Mr. Mahishi said.

Mr. Vijayakumar contended that he had always battled corruption, but from the inside. What changed more recently, he said, is that his pleas ceased to make a difference and that he began to sense his life was in danger.

For instance, his wife said, one night last year, their doorbell rang soon before midnight. There were men at the door, and they told Mr. Vijayakumar that his younger son, a college student, had been in an accident. Come with us, they said.

But the son was asleep in his bed at home, just steps from his father, and the family concluded that the men had crafted a ruse to draw Mr. Vijayakumar from the house. After 13 years in that home, they moved to another neighborhood.

Corruption is nothing new in India. International surveys have consistently described the country as a superpower of graft. But Ms. Jaya- shree sees the temptation to swindle growing in an era when bureaucratic salaries pale beside private-sector pay.

In the early years of the Indian republic, the civil service was plum work. It came with a chauffeured car, cooks and servants, perhaps a white bungalow in a posh neighborhood. Private enterprise, strangled by socialist controls, often failed to match the perks and pay of public service. The marriage market reflected the dynamic: Men with admission to the civil service — and it was overwhelmingly male — were among the most sought-after grooms.

But as India trades socialist dogmas for capitalist ones, the private sector is becoming king. A sexagenarian veteran of the civil service typically earns no more than $9,000 a year, excluding perks like housing and a car. A 21-year-old engineer fresh out of college can make about that much at a software firm like Infosys, with annual raises of 15 percent.

Friday, June 08, 2007

Next week more exclusive documents: What Pfizer wrote to finance whistleblower AFTER he was fired.

Don't miss these new documents of what Pfizer wrote to its former finance executive, Mr. Idnani, six months after he was fired.

Idnani made allegations about extensive financial malfeasance at the Pfizer India operating unit, in an e-mail to Pfizer CEO Jeff Kindler in November 2005

Idnani was then abruptly fired, after 28 years of faithful service, in August 2006.

Pfizer refused to pay him vacation pay and give him his 25 year service medal for another six months after he was terminated.

Links to full story here.

Wednesday, May 16, 2007

Pfizer Finance Executive Blows the Whistle - Part One

On November 17, 2005 Pfizer’s CEO Jeff Kindler, who was then Pfizer’s General Counsel, received and read a highly unusual e-mail, according to the internal read receipt on that mail.

In this e-mail an executive in Pfizer’s finance department in India accused local managers of taking kick-backs in connection with selling off company assets, including selling Pfizer’s manufacturing facility in Hyderabad, at 60% of market value.

But that was an optimistic calculation.

Recently, the finance executive petitioned the Indian government in Hyderabad and received documents which showed that he was wrong - the plant was actually sold for less than 10% of the market value assessed by the government.

The executive also claimed in his e-mail that Pfizer was engaged in unfair accounting practices.

The man behind this e-mail was Mr. Ashok S. Idnani, who has spent 28 years working for Pfizer and his e-mail was the culmination of three years of struggle.

(Click on thumbnails to read his entire e-mail. Certain information identifying Pfizer employees has been redacted.)

It all started in 2002, a year when Idnani's career with Pfizer would take a dramatic turn for the worse.

His formal title was Deputy Manager, Pfizer's Finance Division, and he spent his days in Mumbai, India. One fateful day he met one of Pfizer India’s senior executives in the Pfizer lobby. In a casual conversation the senior executive asked him if the Arthur Andersen people had approached Idnani, since they were working on the integration of Pfizer and Warner-Lambert/Parke-Davis; a company Pfizer had acquired.

Idnani mustered the courage then and there to inform this senior executive that rumors were circulating about kick-backs from Arthur Andersen. Idnani says: “I was curious as well as wanted to inform him what colleagues were saying and to see his reaction”

He thought the executive might take this as a friendly warning, but that is not how things worked out. During the four years that followed, Idnani alleges his salary was frozen, Pfizer withheld his bonuses and many other acts of retaliation took place.

Finally, after three years of increasing concern about numerous dubious transactions that Idnani could monitor in his centrally placed position in the finance department, Idnani finally gave up on achieving change locally. On November 17, 2005 Idnani contacted Pfizer’s leadership team; Hank McKinnell, CEO, Jeff Kindler, General Counsel, Karen Katen, President Pharmaceuticals, and David Shedlarz, CFO, with his allegations. At that point he was close to desperation and his letter clearly indicates his state of mind.

Pfizer's senior management had every reason to take Idnani’s allegations seriously, both based on his long tenure with Pfizer and his central position within the company. So Jeff Kindler ordered an investigation.

We know this because on December 2, 2005 Ms. Indrani Franchini from Pfizer Corporate Compliance and Ms. Sarah Alper, Corporate Audit in New York, conducted a two hour conference call with Idnani, requesting documents supporting his allegations. Idnani also claims that Ms. Franchini assured him there would be no retaliation.

Of particular interest to Pfizer was a “Memorandum of Understanding” (MOU) for sale of the Hyderabad plant, signed with the buyer, Nuziveedu Seeds Ltd, in 2004. The sale to Topnotch Infrastructure Ltd (a fully owned subsidiary of Nuziveedu seeds Ltd) was finalized in 2006.

The original MOU was for Rs.137 million ($3.4 million), however, ultimately Pfizer sold the plant for Rs.122.10 million ($3.0 million). Click on thumbnail to see scanned page from Pfizer India’s Annual Report confirming this amount.

There was only one problem with this agreed upon sale price: The fair market value for the property was more than ten times higher.

Government authorities in India in 2006 requested a tax called “Stamp Duty” payable on the market value of the sale of land and buildings, from the buyer, Topnotch Infrastructure Ltd. The valuation of the property was now Rs.1801 million ($44.4 million). Click on thumbnails below to view this valuation from 2006.














And, says Idnani, even if the Indian government valuation from year 2004 is used, the assessed land value was Rs.7630/ per Sq.Yard (instead of Rs.10000/ per Sq. Yard in year 2006) which adds up to Rs.1388 million ($34.2 million).

Idnani doesn’t have any proof that anyone took kick-backs to sell the plant at a 90% discount, but he has suspicions and he voiced those concerns loud and clear to Pfizer not just once, but several times. And, perhaps his suspicions aren’t surprising when $30 to $40 million in value vanishes into thin air.

Idnani notes that Transparency International ranked India #74 on their Corruption Index in 2006, (Scandinavian countries ranked in the top, and the US ranked #23)

“It doesn't help,” says Idnani, “that Pfizer is a signatory to the United Nations Global Compact or that Pfizer has its own grand in-house ethics and values – these are just decorations on their web site.”

So how did Pfizer resolve this situation?

On January 17, 2006, Pfizer dispatched a two-member team; Ms. Indrani Franchini from Pfizer Corporate Compliance, and Ms. Sarah Alper, Corporate Audit traveled to Mumbai, India, to meet with Idnani and they questioned him at length about the documents he sent to them.

Idnani claims that at this meeting it was agreed that he would be informed of the findings and actions to be taken by line management in New York. In the end, however, he was not given any information of such decisions. Instead, on March 13, 2006 Ms. Franchini sent an e-mail informing Idnani that the investigation was concluded, the matter closed and the details regarding specific steps taken or outcomes would not be provided to him.

Then, on August 28, 2006, Idnani’s employment was abruptly terminated, after 28 years with Pfizer.

Idnani is now 54 and unemployed, in spite of a science degree and a master of law degree. Recently he registered as a lawyer, a profession he resents. He is contemplating approaching what he calls the “corrupt courts in India” about Pfizer's retaliation and the undervaluation of the Hyderabad plant and the loss to Pfizer shareholders. But money is an issue; Idnani did not get rich on his Pfizer salary and he doesn’t even own a computer; he accesses his e-mails in an Internet cafe.

What is also noteworthy is that the retaliation against Idnani didn’t stop when he was fired. Pfizer India also withheld a number of payments due to Idnani after he was terminated.

In an April 30, 2007 e-mail, Ryan Trierweiler Pfizer Worldwide Pharmaceutical Operations (WPO) Japan/Asia HR, writes to Idnani, “As you can see by receipt of various checks over the past couple of weeks I have been working on your behalf to sort out any issues related to your dues. I've also been working with the India site to figure out why these dues were not paid to you sooner.”

So seven months after his termination, Idnani finally got paid. He has a suspicion about why this took so long; he stepped on some mighty big toes within Pfizer.

I asked him what could be the reason for Pfizer to fire the whistleblower and then do nothing if someone dumped corporate assets at 90% discount; that would hardly seem to be in Pfizer’s best interest.

Idnani responded that “by the time Pfizer was informed by me in November 2005 and they completed the investigation in March 2006 the transaction was nearing completion.” He also doesn’t think the Pfizer brass in New York worries too much about whistleblowers in India.

He adds, “In 2004 the company signed the Memorandum of Understanding with the purchaser, and therefore it was not easy to rescind the arrangement.”

Idnani also claims that Pfizer did, in fact, take some action: “When the next plant was sold at Chandigarh, in 2006-2007, they sent in a person, who I understand was Rick Davis from Pfizer N.Y, to personally interview all bidders and overlook the negotiation. For the first time local managers did not have full authority and control of negotiation for sale of a major manufacturing plant.”

But that doesn’t end the story about the plant sale, because Idnani didn’t give up.

In a September 12, 2006 e-mail to Jeff Kindler, who was now CEO of Pfizer, Karen Katen, Vice Chairman, David Shedlarz, Vice Chairman, Alan Levin, CFO, and Sylvia Montero, Senior Vice President, Human Resources, and copied to Pfizer’s Board of Directors, Idnani repeated his many allegations in great detail

And, suddenly, in March 2007, John S. Hong, Pfizer Corporate Counsel, International Investigations and Programs in Pfizer’s Legal Division/Corporate Compliance group wrote an e-mail to Idnani: “Regarding the documentation you reference related to the Hyderabad Plant allegation please forward any relevant documents to my attention. You may send them electronically, by mail or via fax, whichever is most convenient, and we will review them accordingly.”

So clearly Pfizer’s review of the sale of the Hyderabad plant isn’t completed yet.

Over the coming days I will disclose many more of Idnani’s allegations with associated documents, including how Pfizer hired detectives to follow shareholders and a former executive, and documents that show, according to Idnani, how Pfizer bribed government officials and tax authorities. But the story doesn’t stop there; he also tells a detailed tale about voodoo in the Indian finance department and a mysterious guru receiving checks from local Pfizer employees.

Idnani’s final words to me were, “The lesson I have learned - don't be smart - if seniors are defrauding the company, look away.”

PART TWO FOLLOWS TOMORROW: Pfizer's private investigators, their surveillance reports, and whom they followed.

PART THREE ON FRIDAY: Allegations of bribes to tax officials and voodoo practice in Pfizer's finance department.

Update - don't miss the other parts of this story:

1. Pfizer Finance Executive Blows the Whistle - Part One
2. Pfizer Finance Executive Blows the Whistle – Part Two
3. Pfizer Finance Executive Blows the Whistle – Part Three
4. PFIZER CFO RESIGNS after PFE finance executive blows the whistle
5. Will Pfizer CEO Mr. Kindler also resign?

Tuesday, May 15, 2007

PFE executive alleges detectives snooped on shareholders, bribes given to tax authorities and voodoo practiced in finance department.

Plus, there was that little story about a major manufacturing plant dumped at 10% of the value assessed by tax authorities.

Where did the rest of the money go?

Was there any more money or just an incredibly bad deal?

What did Pfizer's CEO Jeff Kindler know about all this and when?

There are many questions.

Find out some of the answers and much more in a three-part series starting tomorrow Wednesday, May 16.

There will be plenty of documents for you to view and download to back up the amazing stories told by a named Pfizer finance executive.

Another whistleblower story. You read it first on Question Authority.

Friday, May 11, 2007

Pfizer Finance: Executive Ready to Blow the Whistle.

I'm working on the next whistleblower story.

A Pfizer finance person who's spent several decades with Pfizer is ready to talk to me.

He is providing documents and other information.

So, while I work on this, I apologize for not posting so frequently.

Stay tuned.

Three part story only on Question Authority, starting Wednesday, May 16.

Monday, April 16, 2007

"WHISTLEBLOWER WEEK IN WASHINGTON"

PRESS RELEASE/ADVISORY

50 PUBLIC INTEREST GROUPS JOIN "WHISTLEBLOWER WEEK IN WASHINGTON" MAY 13-19:
Largest Gathering of Whistleblowers and civil rights activists in
US History.

When: May 13- 19
Where: Washington DC
Why: Senate Passage of Whistleblower protection laws is essential to U.S security, health, freedom of speech and civil rights.
Promote passage of No FEAR II: second civil rights act of 21st century
http://whistle-week-in-dc.org/.

Tuesday, March 20, 2007