World Bank rejects Satyam's demand for an apology | business | Hindustan Times
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World Bank rejects Satyam's demand for an apology

business Updated: Dec 25, 2008 21:41 IST

The World Bank has rejected Satyam Computer Service’s demand to withdraw a statement by which the organisation imposed an eight-year ban on any business with the IT major.

Satyam Computers had earlier asked the international lender for an apology for its statement on the IT major's failure to give proper documentation on fees charged for sub-contractors, and asked the Bank to withdraw the statement.

"The Bank stands by its statement issued on its Indian website on December 23," the India spokesperson of the World Bank Sudip Mazumder said.

The World Bank had said on December 23 said that "Satyam was declared ineligible for contracts for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charges for its sub- contractors."

Asked if the Bank would apologies as demanded by Satyam, he said any comment if at all had to come from the headquarters in Washington, but the Bank stands by its statement.

He said "It will be in appropriate to comment on Satyam's statement since I have not received it or read it."

It is important to note that these developments are based out of our headquarters in Washington and are not related to Bank's India Programme," Mazumder said.

Within two days of the Bank's announcement, Satyam had formally requested the World Bank to immediately withdraw those statements and asked it to "issue a new statement apologising to Satyam for the harm done to the company due to the Bank's actions."

Satyam, which is already reeling under a crisis over aborted acquisition of two firms promoted by family of Chairman Ramalinga Raju, advised the Bank that the IT firm would evaluate all options in view of both the Bank's "inappropriate" public 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," it added.

The issue will now come up for discussion at the December 29 Board meeting of the company, against which the Bank has imposed an eight-year ban.