India's technology minister calls for stronger corporate governance

19 January 2009

India's minister of state for information technology Jyotiraditya Scindia has issued a call for stronger standards of corporate governance in the country to avoid a repeat of the Satyam scandal.

Newspaper the Hindu said Mr Scindia that in the wake of revelations about an alleged £1 billion accounting fraud by Satyam's former chairman Ramalinga Raju, it is now "most important to have the measures in place" to ensure that similar lapses in governance do not occur in the future.

Earlier, economic affairs secretary Ashok Chawla appeared to rule out financial aid from New Dehli to keep Satyam afloat in the wake of the scandal.

"The government at this stage is not looking at any direct support or bailout to the company," he said.

Satyam's shares, which are listed in Mumbai and New York, slid by around 80 per cent following Mr Raju's confession.

Last week, Satyam's new government-appointed board called on the auditors KPMG and Deloitte to restate the company's results after its previous auditor, PricewaterhouseCoopers, admitted that revelations about the alleged fraud may have rendered their analysis "inaccurate and unreliable".



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