Date:14/01/2009 URL: http://www.thehindu.com/2009/01/14/stories/2009011450480100.htm

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Price Waterhouse office searched

M. Rajeev

Documents, CDs containing information on transactions with Satyam seized

PwC claims “its office in South India has not been raided”
Says it is fully cooperating with the agencies

Photo: G. Krishnaswamy

LAW IN ACTION: Journalists gather outside the office of PricewaterhouseCoopers as CID officials are on the job inside, in Hyderabad on Tuesday. —

HYDERABAD: The Crime Investigation Department (CID) of the Andhra Pradesh police on Tuesday conducted searches in the office of PricewaterhouseCoopers (PwC), whose Indian arm, Price Waterhouse, is Satyam Computer Services auditor, at Jubilee Hills here.

The CID officials seized documents and CDs containing information on transactions with Satyam.

The searches by a team of two Deputy Superintendents of Police and three inspectors, led by N. Balaji Rao of the Economic Offences Wing, began around noon and continued well into the evening.

The role of Price Waterhouse, has come under the scanner following a confession by Satyam’s former Chief Financial Officer, Srinivas Vadlamani.

He said that though the accounts were manipulated for years to show “fictitious and unreal” fixed deposits, the statutory auditor never pointed out any deficiencies.

The CID officials took the help of the PwC staff in locating files and other documents containing information on Satyam.

In a statement, PwC claimed “its office in South India has not been raided” and it was assisting the agencies investigating the outsourcing firm.

It was holding discussions with different agencies for providing information requested by them, it said.

“We are fully cooperating with the agencies and providing whatever information/documents/materials that have been asked for,” the statement said.

Coordination meeting

Even as the searches were on, CID Inspector-General V.S.K. Kaumudi held a meeting with officials of the Registrar of Companies (RoC) as part of efforts to coordinate and share information with other investigating agencies.

Asked if there was any move to arrest Satyam Vice-President G. Ramakrishna, who was named by Mr. Vadlamani, Mr. Kaumudi said anybody could be questioned and arrested, if the need arose and there was evidence to establish their complicity in the fraud.

Mynampati for U.S.

The former interim Chief Executive Officer of Satyam, Ram Mynampati, has left for the United States after obtaining permission from the newly-appointed Board of Directors to negotiate with the company’s customers.