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Our Bureau

Visakhapatnam, Dec. 24 Mr T.R. Prasad, one of the independent directors of Satyam Computer, today said that the World Bank had not renewed its contract with Satyam, in accordance with its policy not to renew contracts of vendors who had completed five years or so.

“The Bank had also cleared the company at the time and clarified that it had no role in data theft, or hacking,” Mr Prasad, former Union Cabinet Secretary, added reacting to reports on the World Bank putting an eight-year ban on Satyam Computer.

Talking to Business Line, he said the independent directors were not aware of the reasons now being cited by the Bank, as reported in the press.

Mr Prasad felt that the exact details could be known to them at the crucial board meeting scheduled to be held on December 29.

Responding to a question whether the norms of good corporate governance did not demand disclosure of such information to the shareholders or the regulatory agencies such as SEBI, he said it was “only a case of a client not renewing the contract, nothing more than that, at that time and the company could not be faulted on that count.”

Commenting on the aborted decision of Satyam Computer buying out Maytas Properties and picking majority stake in Maytas Infra, he reiterated that the independent directors on the board had given in-principle concurrence to the proposal on the ground that it would enhance shareholder value.

“It was in accordance with the guidelines stipulated by SEBI and as regards valuation we suggested that land valuation be done according to a general formula followed by revenue authorities in land acquisition,” he said.

Mr Prasad said, “In good faith, we accepted the proposal to acquire the infrastructure company, in view of its potential.

“We applied our minds to it and we were satisfied with it.”

More Stories on : Software | Satyam Computer Services Ltd

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