Satyam’s dishonest practices may also open a bag of worms for other companies associated with it. The revelation of Satyam Computer Services Ltd of about a Rs 7,800-crore fraud may dent the image of the World Bank as it kept quiet until last month about its suspicion of the IT firm's corporate malpractices, according to press reports.
In 2006, the World Bank told the US Justice Department it suspected Satyam may have been involved in bribery, the Wall Street Journal reported, citing bank officials.
However, in late 2007, the bank completed an internal investigation and found that Satyam had acted improperly. Under World Bank rules, the company then had the chance to argue why it shouldn't be banned.
In February 2008, the World Bank temporarily suspended Satyam from bidding on new contracts, and then in September formally made the firm ineligible to bid on future contracts, the report added.
Source : www.thehindubusinessline.com
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