Satyam In the News!

I recently posted reporting on the World Bank's crisis with its computer systems and staffing. In December it was reported that the World Bank had barred Satyam Computer Services Inc from contracts for eight years. Today the New York Times reports:

Satyam Computer Services, a leading Indian outsourcing company that serves more than a third of Fortune 500 companies, massively inflated its earnings and assets for years, the chairman and co-founder said Wednesday, roiling Indian stock markets and throwing the entire industry into turmoil.

Ramalinga Raju resigned after revealing that he had systematically falsified the company’s accounts as it expanded from a handful of employees into a back office giant with a workforce of 53,000 and operations in 66 countries.

Satyam is the fourth largest outsourcing firm after Infosys, TCS and Wipro.

The Indian stock market took a dive today, and the NYT wonders about the oversight of corporations in India. The firm was listed on the New York Stock Exchange raising new questions about the quality of regulation of the U.S. stock market. "The company has been audited by PricewaterhouseCoopers since its listing on the New York Stock exchange."

Wow!!!!