YSR wants institutional investors to take over Satyam management

HYDERABAD - Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy Sunday said the institutions and companies having stake in Satyam Computer Services could be named to the company’s board to take over the management of the crisis-ridden IT firm.

The chief minister made the suggestion even as he welcomed the three-member board constituted by the central government to oversee the functioning of the beleagured company.

YSR, as the chief minister is called by his friends and supporters by his initials, called for making immediate and ‘permanent management structural changes’ to protect the interests of 53,000 employees of the company.

‘This three-member committee is supposed to manage the affairs during the period of transition before the new board takes over,’ the chief minister told reporters.

‘To my understanding, almost 95 to 96 percent shares in the company are being held by various financial institutions and different organisations and companies. These organisations, I am sure, will come together and form some sort of a board or structuring and they will ultimately take over the management of the company,’ he said.

Reddy, however, said the state government has limited role in the matter.

‘The government of India is more experienced in these sorts of things. Managing company affairs is not state government’s purview. The central government have separate ministry and in their own wisdom they have formed this committee, which will look into all aspects,’ he said.

Earlier, Minister of Corporate Affairs Premchand Gupta in Delhi announced a three-member board comprising former Nasscom chief Kiran Karnic, chairman of HDFC Deepak Parikh and former member of SEBI (Securities and Exchange Board of India) C. Achuthan.

‘The company’s order books should be saved and customers’ confidence should be restored to protect the future of 53,000 IT engineers, 50 percent of whom are from Andhra Pradesh,’ the chief minister said.

‘We are trying and taking all needful steps in coordination with the government of India see to it that the future of the IT professionals is saved and money of shareholders in salvaged.’

‘Whatever help the government of India wants, we are too willing to give,’ Reddy said when asked whether the state government would also nominate members to the board.

While stating that crime branch-criminal investigation department (CB-CID) inquiry into the fraud doesn’t prevent inquiry by other law enforcement agencies, the chief minister said. if necessary, the state government would refer the case to the Central Bureau of Investigation (CBI).

‘Instituting a CB-CID inquiry doesn’t prevent the department of company affairs, SEBI or any other legal enforcement agency to act from booking cases, or get the custody of the accused for interrogation,’ the chief minister said.

He claimed Ramalinga Raju and his brother Rama Raju were arrested Friday night after he directed the police to register a suo moto case of fraud against the brothers.