World Bank discloses 4-yr Wipro ban

Font Size

Print

Feedback

Email

Discuss

Related Articles

Govt may help Satyam raise financingMegasoft: no material impactIT caught in slowdown web

Mumbai: the World Bank on this issue and we completely disagree that we are guilty of doing anything wrong. It was an SEC approved scheme and we offered it to many of our clients as a gesture,” Paranjpe added.

“We sold the shares to individuals through investment bankers and we don’t know what their internal policies are,” he said, referring to conflict of interest issues.

According to Paranjpe, the impact of this event would not be significant as Wipro’s cumulative revenues from the World Bank in the last eight years was less than $ 1 million.

According to the Wipro statement, “To date, Wipro’s revenue from the World Bank is insignificant. Our inability to get future business from the World Bank will not adversely affect our business and results of operations.”

Experts don’t see a large impact of this on the industry going forward. Says Nasscom chairman Ganesh Natarajan, “Since Wipro did not feel that it was a significant development, it didn’t come out with a clarification before. However, now that the World Bank has made its disclosure, Wipro has too. We hope there will be no impact on the industry going ahead.

WORLD BANK WOES

Wipro Technologies

Term: 4 years

Imposed: June 2007

Reason: Providing improper benefits to Bank staff

Satyam Computer Services Ltd

Term: 8 years

Imposed: September 2008

Reason: Providing improper benefits to Bank staff and failing to maintain documentation to support fees charged for subcontractors

Megasoft Consultants Ltd

Term: 4 years

Imposed: December 2007