Satyam Fudged FDs, Has 40,000 Employees: Public Prosecutor

Satyam Fudged FDs, Has 40,000 Employees: Public Prosecutor 22 Jan 2009, 1258 hrs IST, TIMESOFINDIA.COM NEW DELHI: The pubic prosecutor in the Satyam case on Thursday said the company had fudged its fixed deposit documents. He said the company was diverting Rs 20 crore monthly. Former chief B Ramalinga Raju diverted Rs 7,400 crore in the name of this mother and brother, the public prosecutor claimed. He added Raju had purchased hundreds of acres of land on benami accounts. The public prosecutor also said the company had 40,000 employees, as against 53,000 mentioned on the company’s payroll. It was reported in Mumbai Mirror today that Satyam's ex-CFO Srinivas Vadlamani has given a new turn to ongoing investigations by confessing to having created around 10,000 artificial jobs in the company. He told CID officials interrogating him that this helped in drawing around Rs 20 crore per month from the related but fictitious salary accounts, economictimes.com reported. There were also reports earlier that the actual number of employees working for Satyam could be much lower than the 53,000 that Satyam has maintained so far, almost by as much as 15-20%, said a person familiar with the investigations. The Serious Frauds Investigation Office (SFIO) thinks this route could have been used by promoters to divert large sums of money as salaries to non-existent employees. Satyam’s board is meeting today to discuss ways to secure working capital, appointment of CEO, CFO and merchant bankers to find a strategic investor for the company. Deepak Parekh, director on the board, said the company is convincing its international clients, who are in a mood to switch over to competitors. While the board is engaged in discussions with a number of banks and institutional investors to source working capital, it has already pledged some of its receivable to secure funding. As a first step, the sales team has been asked to recover the receivables as soon as possible, Parekh said.

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