BackAndhra CM Reddy calls for CBI probe into Satyam scam
Andhra CM Reddy calls for CBI probe into Satyam scam
PremiumInvestigation: Andhra Pradesh CM Y.S. Rajasekhara Reddy. AP
Hyderabad: Andhra Pradesh chief minister Y.S. Rajasekhara Reddy has written to the Prime Minister’s Office (PMO) calling for an inquiry by the Central Bureau of Investigation (CBI) into the accounting fraud at Satyam Computer Services Ltd.
“It would be appropriate if the CBI takes over the investigation into Satyam scam..," Reddy wrote in a letter to the PMO seen by Mint.
It’s the second time that Reddy has written to the PMO on the Satyam scam, which surfaced when the company’s founder B. Ramalinga Raju confessed on 7 January to having doctored its accounts over a period of several years by inflating revenue and profit.
The first time Reddy said he was open to an investigation by the CBI.
Some opposition parties have criticized Andhra Pradesh’s Congress party-led government for allegedly shielding Raju. Bharatiya Janata Party leader Lal Krishna Advani has called for a judicial inquiry into the scam.
Meanwhile, Satyam will trim sales staff in overseas locations to help cut costs and to repay debts to creditors, ‘The Economic Times’ newspaper said on Monday, citing a Satyam official.
“We are looking at rationalizing employees who provide pre- and post-sales services onsite as part of the cost-rationalization exercise," Hari Thalapalli, Satyam’s global head of marketing and communication, was quoted as saying in the report.
The newspaper quoted Thalapalli as saying that the cutting of its sales force overseas was “imminent", given the current state of Satyam and the company was not planning to hire the fresh graduates it had offered jobs a year earlier. About 10,000 employees provide onsite services to clients, the newspaper said.
Satyam has been battling for survival since the scam surfaced and is seeking strategic investors.
(PTI and Reuters contributed to this story.)
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