Date:08/01/2009 URL: http://www.thehindu.com/2009/01/08/stories/2009010853390600.htm

Andhra Pradesh

CB-CID to probe Satyam fraud

Sujay Mehdudia

Preliminary inquiry to look at the criminal angle: YSR

Job security of employees is of prime importance
We will take all legally required action

NEW DELHI: Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy on Wednesday termed the massive financial fraud unveiled in Satyam Computers “mind-boggling” and said his government had ordered a CB-CID preliminary inquiry.

“The total figures are really mind-boggling and as per the statement of Satyam CEO Ramalinga Raju [who has since resigned] the accounts were fudged. We will ask the CB-CID to hold an immediate preliminary inquiry to look at the criminal angle into the entire episode,” Dr. Reddy told a news conference here. Further action would be taken on the basis of this report.

Asked why Mr. Raju could not be arrested in the wake of his own statement, Dr. Reddy said: “That is what I am trying to tell [you]. We will take every possible step. Whatever is needed will be done.”

“Different entities”

The Chief Minister said he would ask his officials to look into various problems and issues concerning this episode. Observing that Satyam and Maytas were two different entities, he said that while Mr. Raju owned very little stake in Satyam, the company employed over 53,000 people and the government would have to look into every aspect.

The Chief Minister said the Hyderabad Metro Project and the Machilipatnam Port Project had been awarded to Maytas. “I have asked the Chief Secretary to look into all aspects related to the metro project. We will decide on it later. Protecting the job security of thousands of young professionals working in the company is of prime importance. Everything that needs to be done to protect the careers and shareholders’ investments would be done.”

“No clean chit”

To a question, Dr. Reddy said he never gave a good certificate to Satyam. “I only said that the attempt of Satyam to take over Maytas was an issue between those two companies and the State government had no role. ”