Satyam Computers clueless on whereabouts of Ramalinga Raju
The management of Satyam Computers has said that it has no clue about his whereabouts, even as a team of the Securities and Exchange Board of India (SEBI) reached Hyderabad to investigate a case of fraud related to the company.
According to some sources, Raju left for Texas on Wednesday morning shortly after admitting to committing a Rs 7,000 crore fraud.
There is a petition pending over his Maytas deal for which British Telecom’s Solutions firm – U-paid had demanded the presence of Raju and senior directors of Satyam for questioning by its lawyers.
As per unconfirmed TV reports, he could have also left for Dubai.
The former Satyam’s chairman is also unreachable on his mobile phone.
The company is expected to hold a news conference at around 5:00 p.m. this evening. The interim CEO of Satyam Computer Services, Ram Mynampati, is likely to address the media.
On Wednesday, Mynampati admitted to the outsourcer inflating profits over several years and that senior officials have been summoned to the Satyam’s headquarters in Hyderabad for further deliberations aimed at ending the crisis.
Meanwhile, Corporate Affairs Minister Prem Chand Gupta said the government is verifying Raju’s statement.
On Wednesday, Raju claimed that Satyam had inflated its earnings over the past few years, but no other board member had been aware of these financial irregularities.
“Once the contents of the message is verified, a proper action would be taken. If it is correct, it is shameful,” said Gupta.
India’s biggest corporate scandal in memory threatens future foreign investment flows into Asia’s third-largest economy and casts a cloud over growth in its once-booming outsourcing sector.
Amit Mitra, Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI) said that the systematic failure might not necessarily spread to other companies, but the incident should provoke the corporate world to have fresh thinking on corporate governance.
The head of Satyam Computer Services resigned on Wednesday, saying the firm’s profits had been inflated, sending the stock down more than 80 per cent and roiling investor confidence.
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