23 Dec 2008, 1535 hrs IST, ET Bureau
NEW DELHI: The World Bank has banned Satyam Computer Services from providing
software services to the financial institution for eight years due to alleged malpractices including bribery, as per a Fox News report.
The report quotes a World Bank official as saying "improper benefits to bank staff" and "lack of documentation on invoices" were the reasons behind the ban applicable till 2016.
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.
When contacted, a Satyam spokeswoman said, "Satyam 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, as per earlier reports by Fox News. However, Satyam was allowed to work for the bank till 2008.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment