CM urges PM to bail out Satyam by constituting a new management team
Andhra Pradesh cheif minister has urged the prime minister to immediately constitute a management team in the wake of the admission of fraud by outgoing chairman Ramalinga Raju.india Updated: Jan 07, 2009 22:49 IST
Andhra Pradesh Chief Minister YS Rajasekhar Reddy has urged the Prime Minister Manmohan Singh to immediately constitute a management team comprising of personalities of globally known integrity and competence viz., Sri Azim Premji, Sri Narayana Murthy and Sri Ramadorai to run the affairs of the troubled Satyam Computers in the wake of the admission of fraud by outgoing chairman Ramalinga Raju.
In a letter sent to the Prime Minister late on Wednesday night, Reddy said such a step was urgently needed to restore the confidence of the global customers in its business continuity, so that the interests of the employees and other stakeholders are protected till an alternative credible management is put in place.
"Today's revelations of the Chairman of Satyam Computer Services Limited have come as a grave shock to everybody in the country. We, in Andhra Pradesh State, are particularly disturbed as the headquarters of the company is in Hyderabad with many operational facilities spread across the State," he said.
"While I have no doubt in my mind that Law will take its own course, our major and immediate concern is about the fate of 53,000 employees of the company. As you may be aware, majority of the clients / customers of the company are Fortune 500 companies, who will be averse to do business with companies having fraudulent managements and they will have every right to cancel the existing contracts, which will jeopardize the interests of the employees and innocent shareholders, " added Dr Reddy.
Copies of the letter were sent to Union Home Minister P.Chidambaram, Planning Commission Deputy Chairman Montek Singh Ahluwalia and Prem Chand Gupta, Union Minister for Company Affairs.