from other fora
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->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? <!--QuoteEnd--><!--QuoteEEnd-->
I hope they report this to IRS.
Many companies (especially those publicly traded) have a declaration policy for employees to notify if they are in receipt of gifts worth more than $50. Some follow it and others don't - most of time it's dependent on individuals.
If it's a auto company in MI, report it to govt as now tax payers are bailing them out. Govt will pay some 5% or 10% on whistleblower act law.
<b>Ramalinga Raju surrenders before police</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Earlier this evening, <b>the government disbanded the current board of Satyam Computer and announced that it would nominate 10 directors on its board</b>.
Corporate Affairs Minister Prem Chand Gupta said in New Delhi that the names of the new members would be announced soon for the board, which would meet in the next seven days.
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here comes political corruption, now Soniawati will make money and it will directly go to Swiss account. <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
<b>The Satyam scandal: Now what</b>?<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The Satyam incident corrodes the individual's faith in the system. The casual observer is left wondering what other skeletons are going to tumble out of which other companies' closets. Obviously, this is going to have an effect on India Inc as a whole, and this could not have come at a worse time, given the global jitters.
<b>It is surely going to be more difficult for other Indian IT service players to win business now, given that they will be tarred by the same brush. Competitors from other low-cost locations such as China, the Philippines, Vietnam, and Eastern Europe will certainly take advantage of the situation. </b>
This is something the IT services industry, facing as it is the threat of a serious reduction in business as fallout from the general market malaise, did not need.
<b>Undoubtedly, this is going to hurt the prospects of foreign money flowing into India in the near future as well; and it was anyway looking a little shaky in the aftermath of the Mumbai invasion and the prospect of war with Pakistan. This will help extend the liquidity crunch and will depress the stock market.
After all, India, running a substantial current account deficit, has been using inflows to help fuel its rapid growth. At a time when the incoming US President is warning of trillion-dollar deficits, India is quite likely to suffer from a cash crunch.
The overall growth prospects of the country, therefore, may also be affected. Thus, it is a disaster on any number of fronts. </b>
People have been quick to compare the Satyam incident is to the Enron scandal and to the Bernie Madoff Ponzi scheme. It might be equally apt to compare it to the sub-prime crisis, because the magnitude of the scandal, and its possible effects, are so large.
And it raises some serious questions: what causes this kind of behaviour? What can be done to detect and prevent it?
Why do people get into fraudulent behaviour? Perhaps, it just became a habit. There was a statement in the Satyam letter to the Sebi that gives a clue -- it talks about 'riding the tiger, not knowing how to get off without being eaten.' Apparently once the books began to be falsified, the company embarked on a slippery slope wherein it could not right matters without things falling apart.
I suspect that in the intensely competitive IT services market, Satyam as the smallest of the big four players was under pressure to show extraordinary results in order to survive.
Was there anything more complicated? Was there unaccounted-for money being funneled in and out of Satyam? It is a known fact that rural Andhra Pradesh has rich landowners who have significant untaxed agricultural income: maybe there were informal arrangements whereby they funded -- and expected high returns from -- Satyam
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<b>No salary in Satyam for 2 months; SEBI summons Raju</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Satyam Computer announced holding back employees salaries for two months, even as rumours were rife that the company <b>might lay off close to 15,000 workers in the coming days. </b>
The offices of Satyam Computer were rife today with the talks about forthcoming pink-slips at the company, which needs over Rs 500 crore every month just to meet its staff costs and has admitted that its cash position was not encouraging.
Employees said they have received an e-mail saying the company would hold back salaries for two months and asked staffers to bear with it.
However, <b>the company spokesperson declined knowledge of any such e-mail and the issue would be looked </b>into<!--QuoteEnd--><!--QuoteEEnd-->
Those on bench in US and Europe will lose job first.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Pricewater honchos in the dock</b>
pioneer.com
Navin Upadhyay | New Delhi
Two senior partners and several auditors of the PriceWaterhouse Coopers (PwC) are in the dock for certifying the âtaintedâ financial statements of Satyam Computers in the last seven years.
The Institute of Chartered Accounts of India (ICAI) on Saturday served notices on the PwC to provide the details of the audit conducted by<b> senior partners S Gopalakrishnan and Srinivas Talluri and their teams from 2001 onward. Gopalakrishnan had audited Satyamâs account between 2001 and 2006. Talluri signed the financial statement of the Satyam for 2007-08.</b>
The ICAI has asked the PWC to provide information on how the bank reconciliation statement was prepared.
<b>The PWC has been given two weeks time to respond. If found guilty, Price Waterhouse can be blacklisted and its auditors will face stringent action, including life ban.</b>
<b>Gopalakrishnan and Talluri are also liable in their individual capacity for any damage suit. Satyamâs shareholders can file cases against them for recovering losses. </b>
The ICAI has asked the PwC to explain how its auditors were so negligent in scrutinising Satyamâs account and failing to detect such a major fraud.
The global head of the PwC is reaching here to take stock of the situation. The audit firm is facing a major credibility crisis and many of its clients have approached firms for future services. Maruti, Suzlon, HCL, Lanco are major clients of PwC.
The ICAI had ordered a probe against Gopalakrish-nan in 2005 for his suspected role in overlooking the Global Trust Bank fraud as an auditor. As the inquiry hit a deadend, Gopalakrishnan became a member of the central council of the ICAI.
<b>Experts are of the view that Gopalakrishnan should be asked to quit the membership of ICAIâs central council so that the probe against him could proceed smoothly</b>.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Raju in jail, CFO grilled</b>
PNS | Hyderabad/New Delhi
pioneer.com
SEBI in huddle, interim Board being cobbled
Satyamâs disgraced founder Ramalinga Raju and his brother Rama Raju were on Saturday sent to judicial custody for 14 days while the companyâs Chief Financial Officer was picked up for questioning, as the Government and regulator SEBI huddled in Delhi to put a new management together to run the IT company.
Raju and his brother were produced before the 6th Chief Metropolitan Magistrate who remanded them to judicial custody till January 23, their lawyer Bharat Kumar said. Inspector General of Police (CID) V S K Kaumudi said Satyamâs CFO Vadlamani Srinivas has been picked up for questioning and interrogation was on in the DGPâs office.
In Delhi, SEBI chairman C B Bhave called on Corporate Affairs Minister Prem Chand Gupta to discuss co-ordinated action against Satyam, whose profits Raju admitted to inflating over the years, besides nominating new directors to te companyâs Board.
Gupta apprised Prime Minister Manmohan Singh on the developments. Andhra Pradesh Chief Minister Y S Rajasekhara Reddy too called Singh to update him on the Satyam front, which the Government has said dented corporate Indiaâs image globally.
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<b>Arrest gifts Raju safety net </b><!--QuoteBegin-->QUOTE<!--QuoteEBegin--> New Delhi, Jan. 11: B. Ramalinga Raju, the former chairman of Satyam Computer Services, may have surrendered himself to Indian police to evade extradition to the US where class action law suits have been filed against the company, legal experts said today.
<b>âHe is most secure with Indian police. Once he has subjected himself to the Indian courtsâ jurisdiction, the matter is sub-judice. He canât be extradited till the Indian legal process ends</b>,â senior Supreme Court lawyer Vivek Tankha said. âNow that he is in judicial custody, he canât even be questioned by Indian authorities without the courtâs permission,â he added.
Corporate lawyer Sameer Parekh said it was possible that Raju was trying to protect his family and its other companies by giving himself up. As Satyam is a listed company on the New York Stock exchange, the US could have proceeded against Raju. âBy surrendering, he might be trying to protect his family and his other companies,â Parekh said.
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<b>Satyam sibling, Maytas, looks in trouble now</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->His comments came amid growing criticism that the proximity of disgraced chairman of Satyam, B. Ramalinga Raju, to the political class helped Maytas leapfrog from a little-known construction company into an infrastructure conglomerate.
From building irrigation facilities and residential townships to constructing ports, Maytas has been on a winning streak for the past couple of years.
The 20-year-old company's annual turnover rose eight times in just three years â from Rs 220 crore in 2005-06 to Rs 1,670 crore in 2007-08.
Last year, it won more than Rs 18,000 crore in contracts, including the Rs 12,000-crore Hyderabad Metro Rail project and a port project in Machilipatnam (Rs 1,600 crore).
Raju's eldest son, Teja Raju, runs Maytas, which is Satyam spelled backward. The rise and rise of Maytas Turnover:
"It has been among the favoured companies of the political leadership here," said EAS Sarma, a former secretary in the Union finance ministry. "In many cases, there wasn't much of competitive bidding. It was done almost on a nomination basis."
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Rs 223 cr in 2005-06
Rs 601 cr in 2006-07
Rs 1,671 cr in 2007-08
<b>Orders in hand</b>
Engineering, procurement and Construction (EPC) contracts: Rs 11,000 cr
Build-Operate-Transfer projects: Rs 18,000 cr
<b>Ongoing projects:</b>
56 projects in 14 states
<b>Prized Catch:</b>
Hyderabad Metro Rail Project : Maytas leads a consortium to build the Rs 12,000 crore project in five years.
Awarded in August 2008
Machilipatnam Port Project: Rs 1,600 cr
Godavari Drinking Water Project: Rs 800 cr
Founded in 1988, the company was largely focussed on irrigation, realty and roads projects until three years ago. It has since diversified in a big way into airport, road transportation, ports and power. <!--QuoteEnd--><!--QuoteEEnd-->
YSR Reddy and Congress everywhere is written on this scam.
The reputation of India's IT services industry took another blow today after it emerged that Wipro has been barred from working for the World Bank, less than a month after Satyam Computer Services was blacklisted by the institution.
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firangi will use epithets against the Indian Industry itself! They easily forgot what Oracle Corp had done in California; and Citibank in Japan without affecting the reputation of the "American Industry"!
Bodhi,
Let me tell you how these companies were operating, Indian companies were bribing hiring managers. Majority of cases it was direct cash. Some cases in form of down payment of car or house. If Indian is a hiring manager then he was paid in India, if he perfers to do so. In some places if requirement was for five people, 10 people were stuffed in just to increase head count and more money to get commission.
This was a big racket started by Indians. I am very happy this got exposed. Finally, we may see balanced job and pricing market in US and worldwide.
I have seen guys who came by Infosys or Wipro or Satyam, who had no clue about software but carry certification from everywhere. Once I told one guy to check database, idiot thought it was physical thing and started searching in book shelf and desk. That BE (CS), Sun Certification guy had never worked on Computer before. <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
Fun will be, if they were forced to release list of people took bribe or favors in US. That will complete whole cycle and case closed <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
<b>Satyam: Govt may offer financial help</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->
The government's help to the crisis-ridden Satyam Computer Services [Get Quote] may include financial support as well, as it is a question of saving jobs and institutional investment, Commerce and Industry Minister Kamal Nath said
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ofcourse this was Congress Party scam, so they want to extend this scam for ever or till General Election.
sob stories to garner symapthy for a bail out. Credit dries up, tears flow
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Hyderabad, Jan. 11: Humiliating warnings from banks not to default on loans. Suddenly deactivated credit cards causing embarrassment at shops and malls.
At the Satyam office coffee shop last evening, the women wept openly and their male colleagues blinked back tears as they spoke of the ways their daily lives had already taken a hit amid the uncertainty about their jobs and future.
Many banks and credit-card agencies have apparently deactivated Satyam employeesâ cards amid rumours that the company may not be able to pay salaries for long. Others have set stringent limits.
Vinod Mendi had bought CDs and a CD player at a mall in the morning. When he swiped his card, the authorisation didnât come. He canât forget the look on the shop assistantâs face. âI was squirming. I had to call up a friend and ask him to bring me some money,â he said.
âMy banks are not authorising payments through my debit and credit cards for purchases above Rs 3,000.â
Even eateries and bars in Hyderabadâs IT hub are refusing credit. âHow can we, when itâs clear they canât pay their dues by month-end?â said bar owner Raghubir Singh.
Since Friday, most Satyam employees who had taken house or car loans have received calls and text messages from banks warning against payment delay or default. Even the vendors who sold pani puri and dahi vada outside the complex have vanished.
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How many of Satyam staff or management had committed suicide?
None, so situation is not dire.
Indian Governtment is very happy to bail out Satyam but they refused to do anything with AP farmers who lost crop because of weather or bad seed, none was their fault.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Now, World Bank blacklists Wipro, Megasoft</b>
pioneer.com
S Rajagopalan | Washington
Itâs not Satyam alone that has been debarred by the World Bank. The Washington-based multilateral financial institution on Monday disclosed that it has also blacklisted two other major Indian IT firms â Wipro Technologies and Megasoft Consultants.
In a public listing of the debarred companies and individuals, the World Bank also revealed the blacklisting of two other Indian entities â <b>Nestor Pharmaceuticals and Gap International â and an individual, Surendra Singh.</b>
<b>Wipro and Megasoft have been debarred for four years, while Satyam has been banished for eight years. </b>
Like Satyam, Wipro has been accused of providing improper benefits to World Bank staff, while<b> Megasoft has been charged with participating in a joint venture with Bank staff even while conducting business with the Bank</b>. All three companies were involved in different contracts and their debarments are not related.
It turns out that the action against Wipro became effective in June 2007 and that against Megasoft in December 2007.
<b>The debarring of New Delhi-based Nestor took place in July 2007 and is effective for three years. The action against Gap International and Surendra Singh is âpermanentâ and was taken back in April 2001.</b>
<b>A World Bank statement said that from now on it will make public the names of all the companies that have been debarred from receiving direct contracts from the Bank group under its corporate procurement programme</b>.
<b>âThis change was made in the interest of fairness and transparency</b>,â the Bank said, adding that henceforth, it would publicly list the companies debarred from receiving direct contracts from the Bank Group under its corporate procurement programme.
The Bank said the move aligns its disclosure practices for companies involved in wrongdoing that work on development projects financed by the World Bank and those that provide goods and services directly to the institution.
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Yes they are crooks but WB is acting on some other agenda. I think it legitimizes curbs on out-sourcing by incoming new Admin. Either way India Inc takes hit for software was supposed to be the take off industry for the knowledge economy.
WB banned companies in 2000, 2006 etc. Not new occurence. Indian PM collects his pension from WB and his buddy in Planning Commision is also from WB. Connections works.
WB is doing lot of cleaning, they even fired Wolfe in 2006. They don't want to convert into UN, most corrupt organisation.
Indian Inc, should have done clean business, in Global economy they should have clean hands, India is not even any kind of power to flex its muscles and get away.
I hope they fix problem. They should learn lesson.
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