Satyam, The Gift That Keeps on Giving
I keep telling myself that I’m going to stop writing about the troubles at Satyam, but it seems like more shocking stuff keeps coming out. In the latest bit of corrupt behavior, the Wall Street Journal reports that Mr. Raju actually skimmed money from the company through payments to 13K phantom employees: (Sorry, subscription required)
“The disgraced former chairman of Satyam Computer Services Ltd., B. Ramalinga Raju, used salary payments to 13,000 fictitious employees to siphon millions of dollars from the Indian outsourcer for land purchases, prosecutors said Thursday.
Prosecutors in the southern Indian city of Hyderabad, where the technology-outsourcing firm is based, told a criminal court that Satyam has only about 40,000 employees instead of the 53,000 it claims.
Prosecutors claimed the money, in the form of salaries paid to ghost employees, came to around $4 million a month. The money was diverted through front companies and through accounts belonging to one of Mr. Raju’s brothers and his mother to buy thousands of acres of land, the prosecutors said.”
It just keeps getting better.
Technorati Tags: Satyam, China Outsourcing
I thought you might find these of interest. Alsbridge, Inc. CEO Ben Trowbridge is quoted throughout about the Satyam crisis.
The Dallas Morning News: Scandal in India Creates Opportunity For Dallas Firms: 1/28/09: http://www.alsbridge.com/news-events/archives/53/Scandal-in-India-creates-opportunity-for-Dallas-firms.html.
Information Week: Satyam Crisis Puts Indian IT Industry — And Customers — On Edge: 1/17/09: http://www.alsbridge.com/news-events/archives/51/Satyam-Crisis-Puts-Indian-IT-Industry-And-Customers-On-Edge.html.
Last week, Ben hosted a webinar (Satyam - What Should You Do?) about the Satyam crisis that you might also find of interest. You can get more information here: http://www.outsourcingleadership.com/.
For more information on outsourcing advisory services, contact Alsbridge at 214-696-6410 or visit www.Alsbridge.com. For more original research and insight on outsourcing topics, visit www.OutsourcingLeadership.com.
Jo Trizila
Trizila Communications, Inc.
jotrizila@trizilacommunications.com
www.trizilacommunications.com
office: 972-247-1369
cell: 214-232-0078
Comment by jotrizila — 2009.1.29 @ 13:59
Alsbridge, Inc. CEO Ben Trowbridge is quoted throughout about the Satyam crisis.
Comment by Outsource Account — 2009.1.29 @ 23:43