Government to thwart Satyam lay offs: Salman Khursheed

01 June 2009

Corporate affairs minister Salman Khursheed has warned that the government would not play the role of a mute spectator to the layoff plans in the scam-tainted Satyam Computers. The minister said the government would continue its active involvement in the company's affairs even after the company's acquisition by Tech Mahindra of Mahindra and Mahindra group.

Sending a clear message of the government's intentions he said the layoffs plan was something that the government cannot be expected to turn a blind eye to as it has a relevant presence in the decision making. He said his ministry would liaise with the company on the issue.

Reacting strongly to the reported comment attributed to Tech Mahindra CEO, Vineet Nayyar that the company had excess 10,000 people on its rolls, Khursheed said that the government would not allow the company to be taken for a ride. He added that the government's opinion and advice were important till things improved.

It was stated in a number of reports in the press last week, that Satyam was planning to lay off about 8,000 staff working in departments like marketing, HR and administration.

In response to a question whether Satyam was not merely the tip of the iceberg, Khursheed said that he would call it a symptom of something wrong in the system. He said that the system need to be treated, otherwise the symptom might reappear. He added that if he termed the Satyam case the tip, it meant that there was an iceberg.

Referring to the probe ordered by his predecessor PC Gupta in the Satyam case, Khurshid said the probe would be taken to its logical conclusion which would make his task easier.