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Jakarta Post

Financial shenanigans, financial statement fraud

  • Pamuji Gesang Raharjo

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PREMIUM
Jakarta   /   Wed, January 29, 2020   /  11:43 am
Financial shenanigans, financial statement fraud Not your land: Jakarta Police spokesman Sr. Comr. Argo Yuwono (right) shows a fake land ownership certificate that was seized as evidence in a case of fraud at a press conference. Investment scams have continued to deceive victims despite warnings from authorities. (JP/Rafaela Chandra)

In early 2001, Joe Nacchio, the chief executive officer of Qwest Communications, stood onstage at a company-wide meeting and delivered a rousing speech intended to energize his team and focus it on his priorities for the company. “The most important thing we do is meet our numbers,” Nacchio declared. “It’s more important than any individual product; it’s more important than any philosophy; it’s more important than any cultural change we’re making. We stop everything else when we don’t make the numbers.” Through his words and deeds, Joe Nacchio created a culture that resulted in US$2.5 billion of phantom earnings, landing himself in federal prison and devasting investors who saw the stock price tumble by 97 percent in the 18 months following his speech. Actually, there are still many other cases related to financial statement fraud,...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.