ID :
41391
Mon, 01/19/2009 - 09:28
Auther :
Shortlink :
http://m.oananews.org//node/41391
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Satyam board was given contrary picture on World Bank ban
New Delhi, Jan 18 (PTI) Even after the World Bank imposed
a ban on Satyam on charges of giving improper benefits to the
lender's employees, the IT company gave a contrary picture to
its board and auditors on the action taken by the global bank.
The minutes of Satyam's audit committee meeting, held on
October 17, 2008, revealed that the company's management had
termed the allegations made by the international lender as
rumours and misinterpretation.
The World Bank made public in December last year the ban
imposed on the IT firm from September.
The audit committee comprised board members, statutory
auditors, global head of internal audit, among others.
In the audit committee meeting, one of the independent
directors, Vinod Dham, had enquired about the World Bank issue
to which the company's then whole-time director Ram Mynampati
said: "The company has been servicing them for the last 10
years and has won many accolades and appreciations from the
World Bank."
Last month, the World Bank had declared Satyam Computer
ineligible to receive direct contract under corporate
procurement programme for eight years, due to the IT firm's
failure to furnish proper documentation on fees charged for
sub-contractors and for providing improper benefits to the
bank's staff.
"Satyam was declared ineligible for contracts for
providing improper benefits to Bank staff and for failing to
maintain documentation to support fees charges for its
sub-contractors," the World Bank had said in a statement.
Mynampati further said that within two hours of the
misreporting about the ban, "World Bank denied the rumours.
The contract with World Bank ended in September 2008 and as
per the policy of World Bank, it cannot continue beyond
certain period... factored in the same in our guidance".
Another director, Krishna Palepu, said despite the
company's "best performance on all fronts, the same is not
being reflected in the stock performance" and he suggested a
review "if the company is lacking in the communication front
to the market." After this, T R Prasad advised "to present the
performance of the stock in comparison with BSE IT index."
The World Bank's decision was effective from September
2008 and prior to that Satyam was temporarily suspended in
February. The Bank said it declared Satyam ineligible to
receive direct contracts under its corporate procurement
programme. PTI DRR
ASJ
NNNN
a ban on Satyam on charges of giving improper benefits to the
lender's employees, the IT company gave a contrary picture to
its board and auditors on the action taken by the global bank.
The minutes of Satyam's audit committee meeting, held on
October 17, 2008, revealed that the company's management had
termed the allegations made by the international lender as
rumours and misinterpretation.
The World Bank made public in December last year the ban
imposed on the IT firm from September.
The audit committee comprised board members, statutory
auditors, global head of internal audit, among others.
In the audit committee meeting, one of the independent
directors, Vinod Dham, had enquired about the World Bank issue
to which the company's then whole-time director Ram Mynampati
said: "The company has been servicing them for the last 10
years and has won many accolades and appreciations from the
World Bank."
Last month, the World Bank had declared Satyam Computer
ineligible to receive direct contract under corporate
procurement programme for eight years, due to the IT firm's
failure to furnish proper documentation on fees charged for
sub-contractors and for providing improper benefits to the
bank's staff.
"Satyam was declared ineligible for contracts for
providing improper benefits to Bank staff and for failing to
maintain documentation to support fees charges for its
sub-contractors," the World Bank had said in a statement.
Mynampati further said that within two hours of the
misreporting about the ban, "World Bank denied the rumours.
The contract with World Bank ended in September 2008 and as
per the policy of World Bank, it cannot continue beyond
certain period... factored in the same in our guidance".
Another director, Krishna Palepu, said despite the
company's "best performance on all fronts, the same is not
being reflected in the stock performance" and he suggested a
review "if the company is lacking in the communication front
to the market." After this, T R Prasad advised "to present the
performance of the stock in comparison with BSE IT index."
The World Bank's decision was effective from September
2008 and prior to that Satyam was temporarily suspended in
February. The Bank said it declared Satyam ineligible to
receive direct contracts under its corporate procurement
programme. PTI DRR
ASJ
NNNN
