Satyam Demands apology From World Bank

HYDERABAD Dec 25th: Taking objection to certain statements made by the World Bank, India's fourth largest software services company Satyam Computer Services Thursday demanded an apology from the international aid institution.


The company, in a statement here, said it "vigorously objects to certain inappropriate statements made by World Bank representatives reported recently in the press".

Satyam urged the World Bank to withdraw the statements and apologise for the harm done to the company.

"Satyam formally requested today (Thursday) that the World Bank immediately withdraw those statements, that it issue a new statement apologizing to Satyam for the harm done to the company due to the Bank's actions, and that it provide Satyam with a full explanation of the circumstances related to the Bank's inappropriate statements."

The statement said Satyam would evaluate all possible options in view of both the Bank's statements and its response to Satyam's requests.

"Satyam usually does not comment publicly on matters involving our customer relationships. However, the inaccuracy and inappropriateness of the World Bank's public statements regarding Satyam has forced us to issue this brief statement in order to set the record straight."

The World Bank Tuesday confirmed it banned Satyam from all business at the bank for eight years and that the ban started in September.

Satyam, World Bank's largest software vendor, had allegedly provided "improper benefits" to bank staff and failed to "maintain documentation to support fees charged for its sub-contractors."

The World Bank move came after bank investigators discovered that spy software was covertly installed on workstations inside the bank's Washington headquarters - allegedly by one or more contractors from Satyam Computers, broadcaster Fox News reported.

Satyam began contract work for the World Bank in 2003, maintaining software across all its locations and back-end office support.

The ban came close on the heels of a major row involving the company's management. Angry investors forced the board of directors to call off a $1.6-billion acquisition of two construction firms partially owned by Satyam Chairman Ramalinga Raju and his family.

Following the row, UK mobile payments company Upaid Systems filed a suit against the company levelling charges of fraud, forgery and breach of contract.