Ban on Satyam can be reviewed
Giving some hope to crisis-ridden Satyam, the World Bank has said it could review the eight-year ban imposed on the company provided the software exporter takes “corrective action.”
A World Bank official said that Satyam has to show it has again become a responsible vendor to do business with, when asked whether the multilateral lending agency would relax the ban on the software exporter.
“The vendor would have to demonstrate that corrective action had been taken to address the original causes of the... ineligibility,” a World Bank official from Washington told PTI in an emailed statement.
The official further said action should substantiate that Satyam is “again a responsible vendor with whom the Bank can do business.” The World Bank banned Satyam Computer Services for eight years in 2008 for providing “improper benefits” to Bank staff and for failing to maintain records relating to fees charged for sub-contractors.
Satyam has a strong case for a review of the ban since its old board and management have been changed after its disgraced founder Chairman B Ramalinga Raju admitted to fudging accounts to the tune of Rs 7,800 crore.
The World Bank’s guidelines for vendors have provisions for relaxing or scrapping bans on entities on fulfilling certain conditions including “bona fide change in ownership or management.”
Following the disclosure of the fraud by Raju, the government superseded the erstwhile board of Satyam, replacing it with one having its nominees.
Source: http://news.indiamart.com/
A World Bank official said that Satyam has to show it has again become a responsible vendor to do business with, when asked whether the multilateral lending agency would relax the ban on the software exporter.
“The vendor would have to demonstrate that corrective action had been taken to address the original causes of the... ineligibility,” a World Bank official from Washington told PTI in an emailed statement.
The official further said action should substantiate that Satyam is “again a responsible vendor with whom the Bank can do business.” The World Bank banned Satyam Computer Services for eight years in 2008 for providing “improper benefits” to Bank staff and for failing to maintain records relating to fees charged for sub-contractors.
Satyam has a strong case for a review of the ban since its old board and management have been changed after its disgraced founder Chairman B Ramalinga Raju admitted to fudging accounts to the tune of Rs 7,800 crore.
The World Bank’s guidelines for vendors have provisions for relaxing or scrapping bans on entities on fulfilling certain conditions including “bona fide change in ownership or management.”
Following the disclosure of the fraud by Raju, the government superseded the erstwhile board of Satyam, replacing it with one having its nominees.
Source: http://news.indiamart.com/
posted by B2B India @ 3:18 AM
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