Together with major league consultancies, such
as Baker-McKinsey, they coached Russian entrepreneurs and managers
in the ways of the West. They introduced investors to Russia when it
was still considered a frontier land. They promoted Russian
enterprises abroad and nursed the first, precarious, joint ventures
between paranoid Russians and disdainful Westerners.
Companies like Ernst&Young are at the forefront of the fight to
include independent directors in the boards of Russian firms,
invariably stuffed with relatives and cronies. Together with IPA,
Ernst&Young recently established the National Association of
Independent Directors (NAID). It is intended to "assist Russian
companies to increase their efficiency through introduction of best
independent directors' practices."
But even these - often missionary - pioneers were blinded by the
spoils of a "free for all", "winner takes all", and "might is right"
environment. They geared the accounts of their clients - by
minimizing their profits - towards tax avoidance and the abolition
of dividends. Quoting unnamed former employees of the audit firms,
"The New York Times" described how "... the auditors often chose to
play by Russian rules, and in doing so sacrificed the transparency
that investors were counting on them to ensure.
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