The Satyam fiasco is now raising concern amongst foreign governments. At least two countries, Singapore and Australia, where Satyam handles several government accounting contracts including salary disbursals, have flagged their concern to the Indian government regarding the latest revelations, according to a senior minister of the UPA government.
Satyam has contracts with several government agencies in Singapore, which continue to be in operation so far. Similarly, the IT company has ongoing projects with government clients in Australia as well as its largest bank, the National Australian Bank. Among the concerns voiced by these countries, according to the minister, are those related to fulfilment of commitments made by Satyam in its contract. The UPA government in fact, he added, was giving top priority to fulfiling all commitments made by Satyam in the 60 odd countries.
?It is not only a matter of Satyam. The reputation of the entire IT industry is at stake? the minister said.
The minister, however ruled out taking over Satyam by the government. ?Such a move would only lead to accepting all its liabilities. And if there are any court cases abroad, government would be answerable as its new owner? he said, pointing out that over half a dozen class action lawsuits had already been lodged against Satyam in the US.
In fact, one of the immediate priorities before the new Satyam board appointed by the government was to ensure that salaries to the 7,000 odd Satyam employees in the US does not bounce. ?The last thing that we need is a default outside abroad,? the minister said. The next payout to the employees is due in the next two or three days, since salaries in the US are disbursed fortnightly.
Members of the new board are likely to meet government functionaries on Thursday. According to the minister, the board will attempt to come out with a restated balance sheet at the earliest besides try to find a CEO and CFO for Satyam. The government is also trying to find out the actual fixed asset base of the company.