The Hindu Business Line : Chile cancels $70-m TCS contract

An arm of the Chilean Government has cancelled an order barely a day after it was awarded to Tata Consultancy Services, earlier this month, on grounds of alleged irregularity in the award of the contract, launching an investigation subsequently on the tendering process.

TCS won the $70-million contract from the Chilean Government that was to be executed over a 10-year period this month through a tendering process.

The Chilean Government arm raised certain questions on the award of the contract to TCS, making charges against two employees of the company in the process.

Confirming the development, Mr N. Chandrasekaran, Chief Operating Officer and Executive Director, said the two of its employees in Chile named in the matter have been asked to go on administrative leave till the matter was cleared. Both the TCS employees are local nationals.

He said an enquiry was on by a body of the Chilean Government, and TCS “is supporting the enquiry process in every way”.

Mr Chandrasekaran said TCS followed the highest ethical practices in its global operations. He was not willing to divulge any details regarding the cancellation of the award of the contract, stating that it was done so (by the Chilean Government) as there was a “conflict of interest”. “I cannot say anything more on this as it will be sub-judice,” he added.

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