Satyam Computer Services, the Hyderabad-based, NYSE-listed software services company, has brushed aside reports about its involvement in alleged security breaches at the World Bank.
HYDERABAD: Satyam Computer Services, the Hyderabad-based, NYSE-listed software services company, has brushed aside reports about its involvement in alleged security breaches at the World Bank.
The company said that “the story that claims Satyam was involved in alleged security breaches at the World Bank has no validity.” Satyam was contracted by the World Bank for implementing technology solutions and has been maintaining a long-term relationship with the bank. In fact, the bank has been one of the high-valued clients of the company with the topline contribution to the tune of $100 million.
Satyam’s contract was not renewed by the bank after it lapsed in September this year. However, Satyam’s employees were reportedly working out of the World Bank premises till this month-end only to transfer to the new contractors.
On the reported involvement of the company’s officials in the security breach at the bank, Satyam said, “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.”
Interestingly, Satyam has been laying emphasis on client retention and repeat orders from the existing clients than scouting for new clients and orders. In this case, the non renewal of contract by the World Bank has raising many questions.
While the senior executives of the company were not available for a comment, a company spokesperson responded to an email from DNA Money and said, “Hope you will understand that we are restricted to share customer contractual details as per company policy. We cannot say anything beyond what has been shared.”
According to sources tracking the Satyam-World Bank relations, it’s not for the first time Satyam had to face allegations that are related to integrity in the bank.
In 2006, there were investigations conducted into the relationship between a vice-president of the bank, who has retired from his service, and Satyam. It was alleged that the senior executive of the bank was given preferential treatment when he invested in Satyam’s IPO in the US.
According to the World Bank rules, the officials of the bank are restricted from using either the bank’s funds or their official position for financial gains. However, the details of the investigation are not known. Satyam’s officials could not be reached for a comment on this issue despite repeated attempts.
k_ramana@dnaindia.net
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