PM: Satyam scam a blot on India’s corporate image

CID gets custody of Raju,his brother,and former Satyam CFO

Written by Express News Service | Hyderabad | Mumbai | Published:January 18, 2009 3:12 am

Describing the Satyam Computer scandal as a blot on India’s corporate image,Prime Minister Manmohan Singh on Saturday said the government was determined to get to the root of the fraud. “The government is determined to unravel the nature of the fraud,” Singh said at a function organised by The Economic Times in Mumbai.

Meanwhile,the Economic Offences Wing of state CID breathed a sigh of relief when the Sixth Additional Chief Metropolitan Magistrate granted them custody of B Ramalinga Raju,his brother B Rama Raju and former Chief Financial Officer of Satyam V Srinivas for four days,starting Sunday. The CID had filed a petition seeking seven days custody of the three on January 11.

It had interrogated Ramalinga Raju and Rama Raju for a few hours on the night of their arrest on January 9 before they were sent in judicial custody. “We sought custody of the three because we need more time to interrogate them to get to the root of the scam. It is really,really very big and complex and we need to question them on various aspects of this nearly 8,000 crore fraud,” it said. The CID has confiscated several personal laptops,computers,and a large number of documents after raids on Raju’s offices and bungalows. The bail plea of all three and also SEBI’s petition to record Raju’s statement will be heard on Monday.

In Hyderabad,efforts continued to get Satyam back on track. The new six-member Satyam board met on Saturday for the second time in a week to take stock of the situation. Besides discussing liquidity issues,the Board also constituted an Audit Committee with T.N. Manoharan as its chairman and C. Achuthan and S.B. Mainak as its members. Manoharan is the former chief of Institute of Chartered Accountants of India.

It also appointed M/s Brahmayya & Co.,Chartered Accountants,Chennai,as internal auditors of the company,with immediate effect. Amarchand & Mangaldas & Suresh A. Shroff & Co.,have been appointed as legal advisors to the Board. HDFC Chairman Deepak Parekh,who chaired the board meeting,told the media that the Centre would appoint a chairman for Satyam in a few days.

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