In a strong and quick step, the government on Friday dissolved the board of Satyam Computer Services and said it would appoint new directors as it sought to limit the fall out from India’s biggest corporate scandal in memory.
Satyam chairman Ramalinga Raju, who resigned on Wednesday after revealing years of accounting fraud, which has called into question the future of the outsourcing company, will appear before the market regulator on Saturday.
Corporate Affairs Minister Prem Chand Gupta said the government would appoint 10 new members to the Satyam board, which would then meet within seven days. He said there was no move to take over Satyam’s management as of now.
“The government is considering appointment of suitable persons as directors of Satyam,” Gupta told a news conference in New Delhi. “We are determined to reach the truth but are equally concerned with the fate of employees and other stakeholders.”
Reports are rife with rumors that the disgraced CEO and founder of Satyam, Ramalinga Raju has left the country after admitting to cooking up the books to a tune of 7000 odd crores and creating an accounting fraud of unimaginable proporotions.
Amid mounting speculation over his whereabouts, Satyam management has said that it has no idea where Raju is.
Sources in the Hyderabad police have said that Raju had left for Texas on Wednesday morning from Hyderabad airport. Raju has not been seen in public ever since his confession, but TV reports suggest that he could have left for Texas.
There is a petition pending over his Maytas deal for which British Telecom’s Solutions firm - U-paid had demanded presence of Raju and senior directors of Satyam for questioning by its lawyers.
According to another TV report, Raju could also have left for Dubai, however, there is no confirmation.
Satyam’s former chairman is not reachable on his mobile phone also.
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