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No clean chit for Satyam’s former top executives

No clean chit for Satyam’s former top executives
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First Published: Tue, Apr 21 2009. 11 05 PM IST

New report: M. Rammohan Rao, former Indian School of Business dean, was one of the independent directors on the Satyam board. Harikrishna Katragadda / Mint
New report: M. Rammohan Rao, former Indian School of Business dean, was one of the independent directors on the Satyam board. Harikrishna Katragadda / Mint
Updated: Tue, Apr 21 2009. 11 05 PM IST
A report by the Serious Frauds Investigation Office (SFIO) into the swindle at Satyam Computer Services Ltd has found that its top executives had not only inflated revenues and profits but also forged statements that purported to be certificates of cash deposits of Rs3,319 crore held with various banks.
The office, an arm of the ministry of corporate affairs, has also collected evidence that the former top management has stashed away a significant amount of money in overseas accounts, including at a New York branch of an Indian public sector bank.
New report: M. Rammohan Rao, former Indian School of Business dean, was one of the independent directors on the Satyam board. Harikrishna Katragadda / Mint
The report has also not given any “clean chit” to the software firm’s independent directors at the time the fraud came to light, said officials who declined to be named as they are not authorized to speak with the media.
These directors were M. Rammohan Rao, former dean of the Indian School of Business, US-based academic M. Srinivasan, former cabinet secretary T.R. Prasad, Harvard don Krishna Palepu, V.S. Raju, former director at the Indian Institute of Technology, Delhi, and Vinod Dham, whose work led to the development of the Pentium computer processor.
It was not immediately known if the report has called for any action against these directors, who were questioned by SFIO during the over three-month long investigation that began on 13 January. These people are no longer on the Satyam board.
The officials also said the report has pointed out that the former auditors of Satyam—Price Waterhouse—had pointed out several loopholes in internal systems at the firm, including invoice management.
cnbctv18@livemint.com
Siddharth Zarabi contributed to this story.
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First Published: Tue, Apr 21 2009. 11 05 PM IST