A top bank official, FOX News has learned, has admitted that a leading India-based information technology vendor named Satyam Computer Services was barred last February from all business at the bank for a period of eight years — and that the ban started in September.
The admission confirms what FOX News reported from its own bank sources on October 10 — a report the World Bank officially disparaged at the time.
The World Bank's revelation of the ban on Satyam comes at a watershed moment for the $2 billion (sales) outsourcing giant, which boasts more than 100 Fortune 500 companies as clients and which trades on the New York Stock Exchange. Last week, India's securities commission announced that it would investigate Satyam.
The move came after the company's founder-chairman suddenly announced the company would spend $1.6 billion to buy two distressed real estate and infrastructure companies that are run and partially owned by his two sons. After Satyam's stocked dropped 55 percent in value, the company reversed course.
The World Bank debarment — the harshest sanction the world's largest anti-poverty agency has imposed on any company since 2004 — was meted out for "improper benefits to bank staff" and "lack of documentation on invoices," according to Robert Van Pulley, the top World Bank information security official. more
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