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Hyderabad/New York
The management of Satyam Computers has said that it has no clue about Ramalinga Raju's whereabouts, even as a team of the Securities and Exchange Board of India (SEBI) reached Hyderabad to investigate a case of fraud related to the company.According to some sources, Raju left for Texas on Wednesday morning shortly after admitting to committing a Rs 7,000 crore fraud.
There is a petition pending over his Maytas deal for which British Telecom's Solutions firm - U-paid had demanded the presence of Raju and senior directors of Satyam for questioning by its lawyers.
As per unconfirmed TV reports, he could have also left for Dubai.
The former Satyam's Chairman is also unreachable on his mobile phone.
The company is expected to hold a news conference at around 5:00 pm on Thursday evening. The interim CEO of Satyam Computer Services, Ram Mynampati, is likely to address the media.
On Wednesday, Mynampati admitted to the outsourcer inflating profits over several years and that senior officials have been summoned to the Satyam's headquarters in Hyderabad for further deliberations aimed at ending the crisis.
Meanwhile, Corporate Affairs Minister Prem Chand Gupta said the government is verifying Raju''s statement.
On Wednesday, Raju claimed that Satyam had inflated its earnings over the past few years, but no other board member had been aware of these financial irregularities.
"Once the contents of the message is verified, a proper action would be taken. If it is correct, it is shameful," said Gupta.
India''s biggest corporate scandal in memory threatens future foreign investment flows into Asia's third-largest economy and casts a cloud over growth in its once-booming outsourcing sector.
Amit Mitra, Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI) said that the systematic failure might not necessarily spread to other companies, but the incident should provoke the corporate world to have fresh thinking on corporate governance.
The head of Satyam Computer Services resigned on Wednesday, saying the firm's profits had been inflated, sending the stock down more than 80 per cent and roiling investor confidence.
Satyam's fraud may batter World Bank's image: Report
The revelation of Satyam Computer Services Ltd of about a Rs 7,800-crore fraud may dent the image of the World Bank as it kept quiet until last month about its suspicion of the IT firm's corporate malpractices, a leading financial daily said on Thursday.
In 2006, the World Bank told the US Justice Department it suspected Satyam may have been involved in bribery, the ‘Wall Street Journal’ reported, citing bank officials.
However, in late 2007, the bank completed an internal investigation and found that Satyam had acted improperly.
Under World Bank rules, the company then had the chance to argue why it shouldn't be banned.
"The bank should have been more responsible about
reporting publicly on what they knew to be misconduct at highest levels of Satyam," the paper quoted Bea Edwards, International Reform Director at the Government Accountability Project, Washington DC, watchdog group, as saying.
In February 2008, the World Bank temporarily suspended Satyam from bidding on new contracts, and then in September formally made the firm ineligible to bid on future contracts, the ‘Journal’ added.
But the paper said it did not announce the ban, called a debarment, until December 23 -- and then only after press reports about it.
Meanwhile, a World Bank spokesperson told the ‘Journal’ that it had acted responsibly. "We took the action we needed to take as an institution to maintain our high corporate integrity standards," the spokesperson said.
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what will be the role of satyams public relation department in future?
SATYAM SCAM HAS REALLY OPENED OUR EYES TO STARK REALITIES IN OURCOUNTRY. 1. OUR PROBLEM STARTS WHEN CHILDREN COME INTO PICTURE IN THEIRPARENTS PROFESSION OR BUSINESS. THIS IS THE ROOT CAUSE OF ALL CORRUPTION. THE REMEDY IS TO STOP PASSING ON THE WEALTH CREATED BY THEPARENTS TO THE CHILDREN. ( SOME PERSONS ACCUMULATE FOR THREE GENERAT-IONS!!). THIS STEP IF SOME HOW IMPLEMENTED COULD SOLVE HALF THE PROBLEMS.2. EVERY REGULATORY BODY OR INVESTIGATORY AGENCY IN OUR COUNTRY HAS UNFORTUNATELY WEAK PERSONS WHO ARE PURCHASABLE. SO WE HAVE TO HAVE A JURY LIKE SET UP WITH PERSONS WITH EXTREME CLEAN RECORDS INTHEIR SERVICE. WE KNOW EVERY DEPT HAS 1% OR SO EXTREMELY UPRIGHTPERSONS WHO HAVE WITHSTOOD THE TEST OF TIME. THEY HAVE TO BE IDENTIFIEDBY A UPRIGHT PANEL, AND GIVEN THE RESPONSIBILITY OF SETTING THINGS RIGHT.(MAY BE RETIRED PERSONS). THIS KIND OF STEPS AND THINKING ONLY WILL SAVEOUR CHILDREN AND ALSO RAJU'S GRAND CHILDREN , WHO WILL HAVE AN UPRIGHTINDIA!!.
Indian Govt should intervene to maintain the image and protect employees in this scenario of recession by some bailout package. If the profit is inflated ,the company might have paid various taxes on the same which they may get refund. It is not clear with no real cash how the company could manage without cash crunch and escaped form the eyes of financing banks and Auditors
VIRTUAL BUSINESS, VIRTUAL PROFITS, REAL LOSSES. THIS IS THE YAHOO SECTOR OF OUR ECONOMY.
Satyam's problems started with mytas takeover attempt and hit badly by world bank action of blacklisting satyam for tenders bid. This testing time gives satyam opportunity to come out misdeeds it as done openly and legalizing its financial statements.
One of the worst nightmares which INDIA have ever faced.I wonder how many such indian mncs will be brought to limelight of such a ugly fraud.If this is the case with every mncs in india,the words of DR.A.P.J.abdul kalam of we becoming mighty super power by 2020 would be still a dream for ever.'SOS' is the loud shout from young sprouting engg like us.GOD CAN ONLY SAVE INDIA...........JAI HIND...........
If the revelation of Satyam Computer Services Ltd of about a Rs 7,800-crore fraud is true then the credibility of Indian companies will be lost and major companies in IT sector will outsource their jobs elsewhere. Apparently this has been created by Ramalinga Raju and co over a number of years. Once again Corporate governance and business ethics of Indain companies will be the main focus for many years to come.
Earlier in 1996 -1998 almost all of the fake degree and experiance certificates holders came from Andhra. at one point us consulate was verifying all certificates from andhra. Now Raju is the phase 2. They are creatign a bad opinion about Indian IT and Indians
I cannot believe what Mr. Raju revealed. It sounds fishy. I do not think it is possible for him to do that without the involvement of other people. Is it possible that he was forced to write that letter by somebody else?
AFTER THE REVELATION OF SATYAM`S SCAM EVERYBODY IS SHOCKED AND FLABBERGASTED SEEING A WHOPPING 7000 CR VANISHING IN THIN AIR... BUT RAJU DID WHAT WAS REQUIRED TO MAINTAIN HIS COMPANY REPUTATION AND ITS CREDIBILITY, AS PER ARTICLE FROM THE NEWSPAPERS HE DID NOT EVEN USE A SINGLE PENNY FOR HIS PERSONAL USES... I SHOULD FIRST SAY HE WAS A CLEVER GUY TO MAINTAIN HIS COOKED BOOKS FOR SUCH A LONG TIME WHICH SHOWED HIS TRUE MANAGERIAL CALIBER.....FROM MY POINT THIS IS NOT THE FIRST TO SEE, THERE WILL BE MORE TO COME IF CORPORATE REGULATIONS ARE TIGHTENED UP...ITS JUST ONLY THAT SATYAM SCAM IS NOT OUT WE ARE ONLY SEEING THEM AS THE ONE TO LOWER THE CORPORATE DIGNITY OF CORPORATE INDIA, THERE ARE MANY MORE EXAMPLES IN MANY TOP INSTITUTIONS OF INDIA WHICH ARE STILL ABLE TO GET AWAY. FROM THE INVESTORS POINT OF VIEW, YES THEY WERE KEPT IN DARK, NOW ITS UP TO THE SEBI AND THE PEOPLE OF INDIA TO TAKE ITS TURN ON RAJU.... "WELCOME TO THE UNDERBELLY OF CORPORATE INDIA"
what was the CAG doing when whole of this case was going on. the CAG could have had controlled over this mishap by controlling the service tax that the company was paying. just one person cant be given the whole responsibility for being involved in this .
India has got promotion to the international level with the disclosure of Satyam's Fraud to the tune of rs.7800 cr.
In our great country where chaos is visible on streets, this is hardly a surprise. Like Pakistan is on terrorism we are also in a state of denial that basically NOTHING is working. We like to take the examples of a few billionares that we created and pretend that we are a great nation when the truth is that large fraction of us are below a poverty line defined at Rs 10 per day of income!I am a Satyam employee but still think that this is not a one off case for I am sure that our polititians would have siphoned several multiples of 7000 crores of our great country.Question is can we EVER wake up and correct this mess called India?
Mr. Mishra, to fix the problem, we have to be realisitc first and accpet that it is not a great country and we are not a great people. We are corrupt. We say Satyam and what we have is Asatya. Political, beaurocratic and judicial system is corrupt. Police is the most corrupt that peope are scared of them than real thieves. We are a great only in cheating others.
This is nothing New and our Indians memery is short. We have forgotten Harshad Mehta, Ketan Parekh and all others. We have also statred forgetting the Mumbai Terrorist attack. Much has been said and nothing has been done. What is the SEBI, the World bank and most important the Auditors doing. The auditors have brought a disrepute to such a noble Profession whcih is relied by so many People. The loss is not only 7000 Crores. Imagine the Person who has bought shares at Rs 400 and whose woth is now 40 Rs 360 Per share multiplied by the Number of shares is the total fraud in addition to 7000 Crore. It may be mind boggling . If this figure is taken the Total loss would be around Rs 100000 Crore. I do not know the total number of shares. To this the fall in the Value of other Group Companies are to be added? It is too premature to come to a figure. "The biggest of the fires could have been put off if water could have been Poured at right time
PWC - External auditors and all internal auditors are real criminals. It is one of biggest accounting fraud where reputed auditors deliberately ignored the standard auditing practices and processes. It appears that they have not verified the physical bank balances of Rs. 5000 cores. Government should make laws to punish auditors including auditing companies.
When every body kept quiet about milking the nation by Harshad Mehta, why raise so much fuss over 7K crores? Only the investors who hv been greedy enough to invest money in other ppl's business without knowing much abt earning money the hard way, are shedding their tears!!
Mr. Raju had held a very good image of a professional in my mind, committing fraud made him fraudulent and running away will make him criminal
Corporate mismanagement, greed and fraud are rampent all over the world. No need to blame all Indian industrialists or declare national shame. By all means demand putting in place stringent regulation and actual practice.
what were the other directors doing for the last few years? all very nice blaming raju now. the other directors by saying the didnt know about the magnitude of the issue are either 1) incompotent 2) liars. Either of which would make one question their credibility in being a company director and its associated responsbilities
While it is no surprise that Satyam is doing this kinda of business,I know in a company in Michigan where TCS is doing multi-million $ contract they are giving 5% to 10% commission as bribe to employees who is signing the contract and extending the contract with TCS . Are these suppose to be illegal with SOX eyes? When some one is going to bell the TCS cat?
It once agin proves that many criminals are educated, wealthy and renowned personalities. Many Indians do not even know the number of Zero in 7000 Crores. Punishment of Raju and Auditors must come from ALMIGHTY and not from any Human being or Law.
Looks you know the zeroes better than others in India. Thats why you are complete zero. Before making comments like many Indians dont even know the number of zeroes in something look at what you are...at the most a software programmer in USA who is zealous about Indians doing well in India.
Raju Ban Gaya NOT a gentleman. Our harshad Mehta abhi becah ho gaya. When will we make a good sysytem work. Our finance ministry have any answers. Public ka money loot maro.
Raju, what can you do with the money? Can you see your family, your nation? Why you did it? You were the king computer state, but now? it is shameful. Earning money is so easy than that of keeping it well. spoiling the name and goodwill is very easy than that of gaining them. Any how, You committed a huge mistake. You just sunk away the employees, shareholders, banks and other investors. Their cursings will definitely touch you. You must be thought about the situations before you leap. We are very sorry because we are helpless.
All Top management Mgmnt , F Mgr n Auditors are accoutable for the Crime.Put them behind the bars without delay so as to retain the confidence. And frame some new controlling measures to avoid in future.
Not only in Satyam in all companies other directors sit in the meetings drink tea coffee shake their heads up and down because they all party to frauds.Chartered accountants auditors representative come stay in the posh hotels on company account or in posh guest houses of the companies, company officers provide them huge entertainment packages rub their balls, mouth , and hands, auditors ready to sign any papers company account department submit them. As per auditors all are Satyam Sundaram. Government watchdog SEBI is like police come into picture only after crimes are committed. Who is there to prevent shareholder investors from such crimes?