Satyam barred from World Bank business: WB spokesman

Satyam barred from World Bank business: WB spokesman

Mumbai: India’s Satyam Computer Services has been barred from business with the World Bank, a spokesman for the World Bank said on Tuesday, confirming a report by Fox News.

“The information is true," Sudip Mozumder, a spokesman for the World Bank in New Delhi, told Reuters.

Shares in the Hyderabad-based firm closed down 13.55%, at Rs140.40, day’s highest loss on the index.

According to a report by Fox News Satyam was barred last February from all business at the bank for an eight-month period on account of an alleged data theft.

Fox News had reported the scandal about ultrasensitive data heists by Satyam Computers, but complying with its secrecy policy the World Bank denied reports.

Read the FOX story on the revelation

Satyam questioning the validity of the FOX scandal report in a defensive statement released earlier had said: “The story that claims Satyam was involved in an alleged security breach at the World Bank has no validity. Satyam takes this matter very seriously. We hold ourselves to the highest standards in the industry, and we take extraordinary care to develop secure networks and IT infrastructure for all our clients."

Read: Satyam denies reports of data theft, World Bank ban

According to FOX reports the Satyam case had been turned over to the Justice Department in 2006 as well as to the US Treasury Department but no legal action against the company is known as yet.