New Delhi: Software services firm Satyam Computer Services Ltd will be stripped off the Golden Peacock Award it won last year for corporate governance, after chairman B. Ramalinga Raju confessed to accounting fraud on Wednesday.
Satyam’s corporate governance standards have been under scrutiny since a botched 16 December attempt to buy two firms belonging to Raju’s sons for a total of $1.6 billion.
“In (the) wake of unfolding events...we have decided to take away the award from Satyam,” said Manoj K. Raut, director general of the India office in the Golden Peacock Award Secretariat.
The UK-based World Council for Corporate Governance had bestowed the 2008 Golden Peacock Global Award for excellence in corporate governance to Satyam in September. Satyam had also won the award in 2002.
Accounting and audit firm Ernst and Young, which had awarded Raju with the Entrepreneur of the Year Award in 2007, was tight-lipped. “The award is given by an independent jury and we are not in a position to comment,” a spokesperson said.