LayoffBlog.com

January 9, 2009

Satyam’s Computer Services Chairman Arrested , Board Sacked, in Fraud Probe

According to Bloomberg: “Satyam Computer Services Ltd. chairman Ramalinga Raju and his brother Rama were arrested and the remaining directors of the software exporter sacked, as India started investigating an alleged $1 billion fraud.”

“Satyam, India’s fourth-largest software exporter, plunged for a second day in Mumbai trading on concern it may run out of money after Raju said he falsified the accounts “for several years.” The scandal, whose scope is being likened to the 2001 bankruptcy of Enron Corp., has shaken confidence in Indian companies and accounting standards.

“The Satyam case is an aberration,” Prem Chand Gupta, the Corporate Affairs Minister said. “The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.”, according to BBC

Update (01-10-2009): “The chief financial officer of India’s Satyam Computer Services Ltd. was arrested Saturday, the third person taken into custody in a scandal that began when the company’s chairman admitted inflating profits with “fictitious” assets and non-existent cash.

Company founder B. Ramalinga Raju and his brother, Rama Raju, Satyam’s managing director, were arrested Friday in connection with the scandal. In a letter written to investigators, B. Ramalinga Raju admitted that he and his brother were responsible for cooking the books at Satyam”, according to CNN

Satyam founder B. Ramalinga Raju

Satyam founder B. Ramalinga Raju

Update 2 (01-10-2009): According to Naatmad: “Satyam Computer Services, [..] has said it will take fewer people on board to cut costs due to the unstable global economic environment. The company is planning to hire only 8,000-10,000 people this fiscal as against 15,000 that it had earlier planned to recruit. [..] Around 250 employees were given the pink slip last quarter.”

Update 3 (01-14-2009): According to BusinessStandard (India): Satyam may get full-time directors in a week

~ LayOffBlog.com: Please feel free to comment this info and/or send us your updates regarding scandal at Satyam. ~

6 Comments »

  1. Satyam Scam by far Largest Corporate Scam in India Inc.
    http://www.satyamscam.info/

    Comment by Satyam Scam — January 10, 2009 @ 9:26 pm | Reply

  2. Gartner and the rest of the IT fortune tellers advocate outsourcing to India

    NO so great after all ..

    Most of the international companies just cooking up their books for business, e.g. Computer Associate ….

    Anyone knows about Gartner layoff ?

    Comment by Ricky — January 11, 2009 @ 1:39 am | Reply

  3. […] Satyam (India) fraud in IT […]

    Pingback by Today’s Hot Layoff Topics « LayoffBlog.com — January 11, 2009 @ 2:34 pm | Reply

  4. Satyam scam will lead to less IT work to Indian Companies for next few months.

    Comment by Satyam Scam — January 12, 2009 @ 10:49 pm | Reply

  5. Thats nice. We send our jobs and our personal, healthcare and financial data to this idiots and this is what happens. At least if we kept our jobs and our data here – and this happened here, we wouldnt have to go far to find the asswipes. PLUS, we’d keep our jobs and homes and feed our own families. Our nation’s CEOs need to be thrown in prison for contributing to a national economic collapse as well as a national security problem. Its time this bullshit stops!

    Comment by Mike — January 14, 2009 @ 7:44 am | Reply

  6. Hi Guys,

    I’m really sorry about the situation at Satyam but if you are looking for an oppty.

    ***Opportunity 1***

    Location : Bangalore, India
    Position: Technical Trainer

    – There could be an opportunity If any of you guys are technically qualified (software) and are looking out for a technical training position with a BPM software product company. Training experience is preferred.

    ***Opportunity 2***

    Location: Delhi, India
    Position: Senior analyst
    Education : BE / MCA (MBA will be a plus)
    Exp : 5+ years

    Skill set
    Hands on experience with programming ASP.Net / C# /.Net

    Role
    Preparation of Prototype/ functional sepcification/ technical specs/ functional design
    Coding and verification of application against SR doc
    R&D for projects and tech team

    Please leave a note with contact info on this Blog and I will get in touch with you.

    Do pass the word around.

    Regards,

    Comment by T — January 14, 2009 @ 8:34 am | Reply


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