World Bank blacklists Satyam for 8 years | india | Hindustan Times
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World Bank blacklists Satyam for 8 years

india Updated: Dec 23, 2008 20:36 IST

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Satyam Computer Services has been barred from business with the World Bank, a spokesman for the World Bank said on Tuesday, confirming a report by Fox News.

Fox News said in a report on its website the World Bank had banned Satyam from all World Bank-related business for a period of eight years from September.

It said the ban was due to “improper benefits to bank staff” and “lack of documentation on invoices” and cited Robert Van Pulley, a top World Bank information technology official.

“The information is true,” Sudip Mozumder, a spokesman for the World Bank in New Delhi, said by telephone.

A spokeswoman for Satyam said the company did not comment on individual clients.

Shares in the Hyderabad-based software firm, which is also listed in New York, closed down 13.55 per cent at Rs 140 on Tuesday.

Satyam, the country’s fourth-biggest software services exporter, shocked the market last week with a proposed deal to buy two firms which management had a stake in. Although it bowed to investor outrage and cancelled the plans to buy two builders just 12 hours after the deals were announced, a slew of brokerages have downgraded the stock saying it would be difficult for the firm to restore investor and client confidence.