labels: World Bank
World Bank rejects Satyam's demand to withdraw statement news
26 December 2008

The World Bank has rejected Satyam Computers' demand to withdraw a statement that it has imposed an eight-year ban on business with the IT major.

''The Bank stands by its statement issued on its Indian website on 23 December,'' reports quoted Carl Hanlon, a World Bank spokesman in Washington and its India spokesperson Sudip Mazumder as saying.
Satyam Computer Services had asked the World Bank to withdraw "inappropriate" statements about it and to issue an apology for harm done to the company, according to a web site release by the IT major.

In a web site statement on Tuesday, the World Bank said Satyam had been declared ineligible for direct contracts with the bank for eight years, effective last September.

Satyam Computer Services Ltd, which is listed on the New York Stock Exchange, said it ''vigorously objects to certain inappropriate statements made by World Bank representatives reported recently in the press.'' 

''Satyam formally requested the World Bank immediately withdraw those statements, that it issue a new statement apologising to Satyam for the harm done to the company due to the Bank's actions, and that it provide Satyam with a full explanation of the circumstances related to the Bank's inappropriate statements,'' the release said. 

''Satyam further advised the bank that Satyam would evaluate all possible options in view of both the bank's inappropriate public statements and its response to Satyam's requests.'' 

''Satyam usually does not comment publicly on matters involving our customer relationships. However, the inaccuracy and inappropriateness of the World Bank's public statements regarding Satyam has forced us to issue this brief statement in order to set the record straight,'' it  said.

Shares in Satyam, India's No 4 software services company, fell after the World Bank said it had barred it from business.

The stock was already under pressure after the firm said last week it would pay $1.6 billion for two infrastructure firms in which its management held stakes.

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World Bank rejects Satyam's demand to withdraw statement