Satyam demands an apology from World Bank | business | Hindustan Times
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Satyam demands an apology from World Bank

Days after the World Bank debarred Satyam Computer Services from doing any business with it for eight years, the IT major has demanded an apology for its "inappropriate" statements.

business Updated: Dec 25, 2008 19:52 IST

Days after the World Bank announced that it has debarred for eight years Satyam Computer Services from any business with it, the IT major on Thursday demanded an apology from the Bretton Woods-twin for making "inappropriate" statements.

Demanding that the World Bank should immediately withdraw its statements, Satyam Computer wanted "it (World Bank) issue a new statement apologising 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."

Satyam Computers, which has courted controversy for its decision to buy Maytas Properties and Maytas Infra and then giving up the idea, said that it would evaluate all options in view of both the Bank's "inappropriate" public statements and its response to the IT firm's requests.

The World Bank on Monday said it has declared Satyam Computer ineligible for eight years to receive direct contract under corporate procurement programme due to IT major's failure to furnish proper documentation on fees charged for sub-contractors and for providing improper benefits to the Bank staff.

"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," the World Bank said in a statement today.

The Bank's decision was effective from September this year and prior to that Satyam was temporarily suspended in February.

The statement by Satyam, however, did not clarify whether the charges made by the World Bank were correct, nor did it talk about contesting the ban.

Meanwhile, independent director on Satyam's Board T R Prasad has told PTI "it (World Bank's recent remarks) will definitely come up for discussion in the next board meeting".

A day after the Bank statement came Satyam shares took a major beating in the stock market.

The issues is likely to be raised in the Board meeting on December 29.

First Published: Dec 25, 2008 19:48 IST