Ramalinga Raju run charity denies wrong doing in getting contracts | india | Hindustan Times
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Ramalinga Raju run charity denies wrong doing in getting contracts

india Updated: Jan 18, 2009 18:56 IST
Ashok Das

EMRI, the medical emergency charity run by tainted Satyam ex-Chairman B Ramalinga Raju on Sunday clarified that due process was followed in securing contract to run emergency ambulance services in 11 states where it operates.

Responding to a Public Interest litigation filed against the company in the Supreme Court by two NGOs, Ambulance Access Foundation and Transparency in Contracts, EMRI CEO Venkat Changavalli denied that tenders were tailor-made to benefit his organisation.

The PIL charged that that most contracts were given out to EMRI without proper tendering.The Apex Court on Wednesday directed the Centre, respective state governments and EMRI to respond by 18 February to the petition.

Venkat said that Ramalinga Raju rang him up at around 11 AM on Jan 7(the day he resigned after admitting fraud) and told him that he was making a statement about Satyam. “Whatever happens to Satyam because of my statement, I want it should not affect EMRI,” Raju told him.

Stating that the relationship with Satyam was ‘non-financial’ he said that the technlogical partnership of EMRI with Satyam was continuing. “ They have not asked to terminate the contract, so there is no need for action on our behalf,” he said

He said that notwithstanding the Satyam fraud issue, many intrepreneurs, corporates and high networth individuals are coming forward to fill the funding gap for EMRI. The state government so far contributed 95 per cent of the costs leaving the rest five per cent to be taken care by RamaLinga Raju family.

With Raju family out, the EMRI would need Rs 5 –6 crores per year to fund the gap, which goes to pay salaries of top executives and other incidentals.

The EMRI is contemplating various options such as enroling new mermbers(each membership costs Rs 5 crores) and getting state-level sponsorships from corporates which could generate another Rs 5 crores. In return the EMRI ambulances with sport a logo of the sponsor in that state.

Some states like Andhra have already come forwerad to fund it 100 percent withourt going for outside support.

In the wake of resignation of several eminent persons like former President Abdul Kalam from the board, he said the board would be reconstituted soon.

He claimed “hundred per cent integrity “ in running EMRI. “We have not taken a saingle paisa from patients. Nor we paid a single paisa to satyam or Ramaling Raju(who invested 34 crores initially).He denied that EMRI was selling the health software developed by Satyam to states.