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Satyam fallout reviewed

NEW DELHI: Prime Minister Manmohan Singh on Monday directed Cabinet Secretary K.M. Chandrasekhar to “coordinate the approach of the government” on the Satyam issue, following the revelation of a Rs. 7,100-crore accounting fraud by the IT major’s erstwhile chairman B. Ramalinga Raju.

Dr. Singh reviewed the “developments” with SEBI chairman C.B. Bhave and senior Finance Ministry officials on the “further steps” that need to be taken. “The Prime Minister is closely following the developments,” PMO sources said.

Top industry leaders also met the Prime Minister and discussed the fall-out that the corporate fraud would have on the global image of India Inc.

The former CII president, R. Seshsayee, CII’s chief mentor Tarun Das and Gujarat Ambuja chairman Suresh Neotia were among the small group of industrialists who met Dr. Singh.

The current crisis appears to be worse confounded following the World Bank initiative against five Indian entities, including Wipro Technologies, for violating the multilateral institution’s guidelines on checking fraud and corruption.

In a quick move to salvage the image of Indian industry, the CII has set up a special task force on corporate governance to be headed by Naresh Chandra, former Cabinet Secretary and India’s ambassador to the U.S.

In a statement here, it said: “The issue of corporate governance was discussed in great detail in the context of the events at Satyam.”

The task force, it said, would look into the issues emerging out of the Satyam crisis and make its recommendations.

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