Board to raise cash for Satyam

New Delhi/ Mumbai Jan. 11: The Centre on Sunday announced a three-member board for Satyam Computer Services Ltd headed by top banker Deepak Parekh, chairman of the Housing Develop-ment Finance Corporation (HDFC). The two other directors are the former Nasscom president, Dr Kiran Karnik, and Mr C. Achuthan, former presiding officer of the Securities Appellate Tribunal and former Sebi member. Mr Parekh, who reached Hyderabad on Sunday evening, said the three directors would meet the registrar of companies later on Sunday evening and that the first formal meeting of the new board would be held at the Satyam office at 9.30 on Monday morning. He said the first priority for the directors would be to restore confidence among the staff and clients of the company. It will be an independent board with full authority to take decisions, the corporate affairs minister, Mr Prem Chand Gupta said. Mr Achuthan, who runs his own thriving law firm, said: “The topmost priority of the team would be to put back on the rails the scam-tainted IT company and ensure all those guilty do not go scot-free.” Mr Karnik said the board will ensure that Satyam’s business operations go on. “This would be important from the point of view of both employees and customers. It will also create a sense that India continues to be a safe, secure and reliable IT destination,” said Mr Karnik. He said that every global investor who had spoken to him had expressed great confidence in the Indian IT sector. “This is based not on some feelgood factor but on our past record, and they recognise this is just one aberration,” said Mr Karnik. Mr Prem Chand Gupta said the government, which can appoint up to 10 members on the Satyam board, would appoint the other members when the need arose. “As per the Companies Act there must be a minimum three members, and we have announced that,” he said. On appointing investment bank Lazard, which had bought 4.5 crore Satyam shares in the last two days of trading, as well as representatives of the LIC, Mr Gupta said the government was open to all options. The minister said the board would take care of Satyam’s liquidity problems.

Cops work on Rajus’ codes

Hyderabad Jan. 11: The police seized papers, computers and CDs from the residences of the Raju brothers and Satyam’s former chief financial officer, Mr Vadlamani Srinivas. A CID officer said the police had recovered many CDs, hard disks and laptops. “We are cracking the passwords and trying to retrieve information,” he said. Mr Srinivas, who was sent to Chanchalguda jail on Sunday, has reportedly named a senior Satyam official as having a key role in the preparation of the balance sheets. Police is now looking for the official. Sources said that Mr Srinivas claimed during interrogation by CID officers that he knew little about fudging records and changing balancing sheets. Mr Srinivas, who was arrested on Saturday night, was remanded by the sixth additional chief metropolitan magistrate to judicial custody till January 23 and taken to Chanchalguda jail. The CID has asked for Mr Srinivas’ custody and the petition will come up on Monday, along with petitions on behalf of the Rajus. Defence lawyers have decided to file bail petitions for all the three on Monday. Mr Srinivas complained of high BP and the magistrate directed officials to provide him medicare.

Pak no to terrorists hand over

Karachi, Jan. 11: In a rebuff to India, Pakistan on Sunday ruled out handing over to any country any of its nationals found involved in the Mumbai terror attacks saying “necessary action” will be taken under its own laws. The Prime Minister, Mr Yousuf Raza Gilani said Pakistan is conducting its own probe into the evidence received from India on the Mumbai attacks and indicated that any Pakistani national found to be involved in the Mumbai attacks will not be handed over to any other country. India has been pressing Pakistan to hand over the attack suspects. “We are conducting our own investigation and once we have completed it, we will bring the findings before the people,” Mr Gilani said, adding that the evidence provided by India was being examined by investigators. “We have our own laws and we will take action according to them. We want to assure everyone that we will not allow our soil to be used for terrorism,” Mr Gilani said.

Fake papers found with CFO’s driver

Hyderabad Jan. 11: Police found a bundle of fake educational certificates in the room of the driver of of Mr Vadlamani Srinivas, former chief financial officer of Satyam Computers. The room of the driver, Babji, is on the first floor of the residence of Mr Srinivas. The certificates were from Osmania University, Nizam College and other universities. A CID official said, “The driver is claiming that the fake certificates were brought to the room by his friend.”

250 dead in Indonesia boat capsize

Jakarta: A ferry capsized in a severe storm and crashing waves in central Indonesia today and officials said around 250 people were feared dead. Eighteen survivors were rescued by fishing boats, but the fate of the others remained unclear, said Taufik, a port official at Parepare on the island of Sulawesi, where the ferry began its journey. Taufik uses one name, as is common in Indonesia. About 250 passengers and 17 crew are believed to have been onboard the ferry when it went down 50 kilometres off the coast off western Sulawesi.

Maytas paid Rs 85cr

Hyderabad Jan. 11: The Chief Minister, Dr Y.S. Rajasekhar Reddy, said on Sunday that only Rs 85 crore had been paid to Maytas, though the company was allotted work worth Rs 29,000 crore. “We have bank guarantees even for that amount,” Dr Reddy said, clearly relieved at the development. Dr Reddy, unusually for him, went to the office on Sunday for a meeting with the chief secretary and departments officials. The meeting examined all papers related to projects awarded to Maytas firms and concluded that there was no problem for the government except that a few irrigation projects could get delayed. The irrigation department had given projects worth Rs 3,000 crore to Maytas, of which it had completed Rs 1,748 crore worth of work and got the payment. The government is yet to pay Maytas Rs 156 crore for completed work.

Esma on, but state goes easy

Hyderabad/New Delhi Jan. 11: The state government is set to crack down on transporters if they don’t call it off by themselves even as truckers seemed to be returning to duty. The Centre has called a meeting of state transport ministers on Monday to deal with the situation. However, reports from the capital of transporters in the state, Vijayawada, said that more truck owners were calling off the strike which entered its seventh day on Sunday. Government officials said they had invoked the Essential Services Mainten-ance Act, or Esma, 10 days ago to ensure supplies of vegetables, perishables and oil products. It was not implemented as the talks with truckers was going on. “Oil carriers and perishable good suppliers have increased their service,” said a senior official. “But the strike is still going on in several areas. We will resume talks on Monday.” The Centre has issued an action plan to the states which includes allowing free flow of goods across inter-state borders by giving temporary permits and identifying drivers to be engaged in case vehicles are requisitioned to supply essentials. The AP Lorry Owners Association has said that the truckers will not call off the strike until the government responds to their demands that include reduction of diesel price and cut in taxes. Elsewhere, the truckers began calling off their srike in Jaipur, Mumbai, Pune and some places in Karantaka.

CM shocked by Raju’s confession

Hyderabad Jan. 11: The Chief Minister, Dr Y.S. Rajasekhar Reddy, doubted if Maytas Infra and Maytas Properties have 6,800 acres of land. “We are aware of the Maytas claim. But I was told by my officers that the land is on agreements,” said Dr Reddy. The normal practice in Hyderabad has been that the developer pays a nominal amount to enter into agreements with the land owner and that is called agreement land. If the developer pays the entire amount the land is registered. Talking to this newspaper, Dr Reddy said that he was shocked to hear the confession of Mr Ramalinga Raju. Dr Reddy was in New Delhi attending the Chief Ministers’ meeting when Mr Raju released his statement. “No doubt, he made the state proud with his company. He gave employment to thousands of IT engineers. In fact 50 per cent of Satyam employees are from the state,” remarked Dr Reddy. Meanwhile, the Chief Minister criticised the Opposition for painting a sorry picture of the government. “Opposition leaders are ready to complain against the government even if they have a problem with their wives. If the wife does not cook breakfast they allege that it is the failure of government,” the Chief Minister said, ridiculing the Opposition. Coming down heavily on the Opposition parties for criticising the Congress over the Satyam episode, the Chief Minister termed such allegations as “senseless talk”. Responding to allegations levelled by Mr Chandrababu Naidu, CPI secretary general, Mr K. Narayana, CPI(M) general secretary Mr B.V. Raghavulu, and Chiranjeevi against him, Dr Reddy lamented: “Senseless people always talk like this. I don’t want to respond to them.” He immediately added that he did not make any allegations when Mr Naidu gave a seat to Mr Ramalinga Raju when the former US president Mr Bill Clinton came to Hyderabad. “Mr Naidu was even criticised by Ramoji Rao for not inviting him to the dais,” the Chief Minister pointed out. He recalled that even Mr Ratan Tata was made to sit in the gallery. He promised that the CBCID inquiry will not hamper other investigations carried out by the Sebi, and other Central agencies and said that the CBCID would co-ordinate with the other agencies. “Our top priority is to protect the 53,000 employees of the company and give relief to 3 lakh investors,” he said and welcomed the Centre’s decision to appoint a three-member board to the Satyam management.