World Bank bans Satyam for 8 years

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iNFiNiTE

iNFiNiTE

The cake is a lie!!!
NEW DELHI: The fourth-largest Indian IT company Satyam Computer Services has been banned by World Bank says a Fox News report. The report quotes a senior World Bank official admitting that Satyam has been barred from all business at the bank for eight years.

The World Bank debarment has been meted out for "improper benefits to bank staff" and "lack of documentation on invoices," according to Fox News report.

World Bank information security chief Robert Van Pulley admitted to the ban during a recent meeting with the officials of Government Accountability Project (GAP), a whistleblower protection organisation in the US, as per the report. The bank has handed over the case to the US Justice Department and the Treasury Department.

Satyam reportedly refused to comment on the story when cotacted, saying that it does not comment on individual clients.

Satyam started providing IT services to the World Bank in 2003. Two years later, allegations of bribery surfaced. In 2007, an internal World Bank investigation found that former VP Mohamed Muhsin had secured contracts and purchase orders worth $100 million for the Indian firm in return for Satyam's stock options (ADRs) at preferential prices. After which Muhsin was banned permanently from the bank. However, Satyam was allowed to work for the bank till 2008.

There have also been allegations against Satyam of causing security breaches at the bank. World Bank's records, which contain sensitive financial information, have reportedly been illegally accessed over the last year.

Previous Fox News reports have accused Satyam of installing spyware on World Bank workstations that would have allowed access to sensitive financial information at the bank. During the meeting with GAP officials, Pulley denied Satyam was behind any of the security breaches.

According to Fox reports the Satyam case had been turned over to the Justice Department in 2006 as well as to the US Treasury Department but no legal action against the company is known as yet.

World Bank's revelation couldn't have come at a worst time for Satyam. The company is already facing flak from investors on its decision to acquire Maytas' distressed real estate and infrastructure industries for $1.6 billion.
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Troubled Times for Satyam :(
Source
 
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thewisecrab

thewisecrab

AFK
I did read about this on this forum a while back.
Data theft is a serious issue and thus, has not been taken lightly by the World Bank.
First Maytas deal, now an 8 year ban, this is a really bad phase for Satyam. :|
 
R

Ramakrishnan

The Researcher
Is sifi and satyam same? If it is, then they deserve every bit of whatever is coming to them. This goes to show that business ethics also plays an important part in business dealings.
 
G

gforce23

Rapacious eBayer
Ramakrishnan said:
Is sifi and satyam same? If it is, then they deserve every bit of whatever is coming to them. This goes to show that business ethics also plays an important part in business dealings.
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Yeah, I guess. Sify = Satyam Infoway.

Well, it's a cut-throat market out there. If Satyam have been kicked out, someone else will be at the WB's doorstep tomorrow. The head honchos at TCS and Infy must be jumping around with glee. Perhaps WB might shift their operations back to the U.S.. I think my ex-employer (IBM) might be an unlikely candidate as well.
 
Ecstasy

Ecstasy

a.k.a VipER
Correct me if I'm wrong but from what i know Sify and Satyam were together but they seperated some time earlier.

I guess there is a good chance that Satyam might get sued this time.
 
victor_rambo

victor_rambo

हॉर्न ओके प्लीज़
^Yep....Satyam and Sify separated sometine earlier.
Now I guess, Saytam's reputation has been tarnished. Bad time for the company.

Their management has dented the investors confidence by attempting to acquire maytas. Those of you involved in stocks may know that maytas is T.Raju's own company and the promoter stake is said to be as high as 85%........
 
desiibond

desiibond

Bond, Desi Bond!
afaik, that news blew out of proportion and there is no ban on satyam and they are functioning as usual.
 
karnivore

karnivore

in your face..
Given the current recession, I won't be surprised if Satyam goes under liquidation in the coming years. Either that, or it may be taken over by a even bigger fish. Frankly, it will be very difficult for Satyam to come out of this mess. Its stock has already taken a hit.

Sad, very sad news. :( It actually has the potential of the entire indian IT fraternity being painted with the same brush. That would be very unfortunate.

May be i am being paranoid. But....
 
desiibond

desiibond

Bond, Desi Bond!
gforce23 said:
Contradictory statements? A little too much at the pub last night, eh?
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The bigger scandal is Satyam trying to acquire a company (this is ready to die) run by Ramalinga Raju's son to keep it alive. It is opposed by the investors but still mgmt is trying to find a way to acquire it. Thats' more disturbing than the world bank thing that no body knows how true is.

Ramalinga Raju is trying to pay Rs.79.2 billion to acquire real estate and infrastructure firms run by his sons.

Wall Street made its displeasure known by pummeling the Satyam stock, which lost over 50 percent of its value on the New York Stock Exchange (NYSE) to $5.71 at 10.40 p.m. (IST).

The two companies are Maytas Properties and Maytas Infra Ltd

Now you know why Satyam stock is going down!!!

And still I would say that they have enough reserved to stay alive for atleast 2 more years.
 
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Pat

Pat

Beyond Smart
The ban on Satyam only bans them from working for World-Bank, not other international clients. Some people here seem to be confused.
 
desiibond

desiibond

Bond, Desi Bond!
The news is official now.

World bank has banned operations with Satyam

Due to increase pressure from investors, Satyam has dropped offer to buy Maytas

Their shares are falling like anything.
 
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