Satyam can remain afloat on its own: Pranab MukherjeeBy IANS
Wednesday, February 18, 2009
NEW DELHI - The government would not bail out any ‘individual’ company like Satyam Computer Services if found guilty of fraud, Minister for External Affairs Pranab Mukherjee said Thursday. He maintained the IT bellwether could sustain itself if managed professionally.
Satyam, which has been plagued by controversy since December following a failed takeover attempt of Maytas Infrastructure and Maytas Properties - belonging to the IT company’s promoters - shook the country after former chairman and founder B. Ramalinga Raju confessed to a Rs.70-billion (Rs.7,000-crore/$1.43-billion) accounting fraud.
‘The government is not interested to bail out any wrong-doer. The company holds significant importance in its sector and has several international clients. The company has adequate incumbent assets, which can make the company run if managed professionally,’ Mukherjee said while answering a question in the Rajya Sabha.
The government has taken several steps since the scam came to light including superseding the Hyderabad-based company’s board and appointing its own nominees, in addition to handing over the criminal probe to the Central Bureau of Investigation (CBI).
Raju, his brother and then managing director Rama Raju, as well as former chief financial officer Vadlamani Srinivas are under arrest.
Mukherjee said apart from the CBI, the Serious Fraud Investigation Office (SFIO) and the Securities Exchange Board of India (SEBI) are also investigating the fraud.
‘CBI has been given the case to investigate the criminality of the matter and it will take some time to come out with the results.’