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India names 3 more to board of Satyam after fraud

India names 3 more to board of Satyam after fraud

Indian authorities named three more business leaders to the board of embattled outsourcing giant Satyam Services Ltd. on Thursday in an attempt to help the company recover from a massive fraud scandal.
The three new board members _ experts in accounting and investing who are well known in the business community _ will join three others who were named earlier to the Satyam board, said Corporate Affairs Minister Prem Chand Gupta.
The government dissolved Satyam's board last week days after the company's founder and chairman B. Ramalinga Raju confessed to doctoring the company's books for years, including $1 billion in fictitious cash deposits.
Three Satyam executives _ Raju, his brother B. Rama Raju, who served as Satyam's chief executive, and Satyam's former chief financial officer, Srinivas Vadlamani _ have been arrested on charges including cheating and forgery.
The new board members are T.N. Manoharan , a former president of the Institute of Chartered Accountants of India; Tarun Das, of the Confederation of Indian Industry, a leading business association; and S. Balakrishnan, of the Life Insurance Corp. of India.
Satyam has appointed Deloitte and KPMG to assist the company in restating its accounts and determining its true assets.
Price Waterhouse conducted Satyam's audit reports for the last eight years, but the firm said it relied on potentially false data provided by the company and its reports should be disregarded. Price Waterhouse is an Indian firm that is part of the global PricewaterhouseCoopers International Ltd. network.
Satyam, which is headquartered in the southern Andhra Pradesh state, employs 53,000 people _ among the 2 million Indians working in the country's booming high-tech industry, which has sparked India's recent economic boom. The company's clients include a slew of Fortune 500 companies including Nestle, General Electric and Ford Motors.


Updated : 2021-05-15 15:48 GMT+08:00