World Bank Open to Revoking Satyam Ban

by CXOtoday Staff    Feb 16, 2009

After the recent SEBI relaxation of takeover norms for scandal-hit Satyam Computer Services, comes further heartening news for would-be suiters of the IT outsourcing company.

The World Bank, which had imposed an eight-year ban on Satyam in 2008, is now amenable to review the ban if the company takes "corrective action" to show it has become a responsible company to do business with.

In an email response to PTI, an official of the multilateral lending agency said, ""The vendor would have to demonstrate (that) corrective action had been taken to address the original causes of the … Ineligibility."

The Bank had imposed the ban on Satyam for providing "improper benefits" to Bank staff and for failing to maintain records relating to fees charged for subcontractors.

The new Satyam board, with Kiran Karnik at the helm, is currently looking for a buyer who can infuse a substantial amount of cash, strong management and governance. Though no bids have been made, Larsen & Toubro and Hinduja Global Solutions, among others, have shown a clear interest in Satyam.