India’s Enron SATYAM SCAM

Satyam sees sabotage by top officials

Executives Talk To Clients, Attempt To Shift Work To Rival Companies

Deepshikha Monga & Soma Banerjee NEW DELHI

SOME senior executives of Satyam Computer Services are trying to sabotage the troubled company by attempting to divert work to rival firms or cut deals with customers apprehensive about the struggling company's future, top Satyam officials said.
    Some of the executives suspected of destabilising the company's relationship with clients have been identified, two Satyam officials said, but did not reveal how many could be involved. "A few executives have asked a customer if he would give them work if they started something on their own with their current team at Satyam," said a company official, on condition of anonymity.
    Some have also contacted rival IT firms to enquire if they will be hired as part of a package deal in which they come with members of their team as well as Satyam's clients.
INSIDER JOB The Satyam board sacked senior veep Anil Kumar who was allegedly in talks with a rival IT firm to join it along with his team members
Last month, the co also sacked a relationship manager handling US health insurance firm Cigna, allegedly for trying to move work
Two Satyam officials confirmed that the firm has identified some of its key execs for destabilising the company's relationship with clients
Some executives have also contacted rival IT firms to check if they will be hired on bringing along their team members and Satyam's clients Satyam roadmap in the works
RECENTLY, the Satyam board sacked senior vicepresident Anil Kumar, who was handling the banking, financial services and insurance business verticals at the firm. Mr Kumar, who was reporting directly to the former interim CEO Ram Mynampati, was in talks with a rival IT firm to join it, along with his team, according to a person with knowledge of the development.
    Last month, the company sacked a relationship manager handling US health insurance firm Cigna after finding out that he was in talks with the insurer to divert work away from Satyam. A government-appointed board is attempting to save Satyam from collapse after its founder B Ramalinga Raju said he had cooked the firm's books to the tune of over Rs 7,000 crore. The board is now chalking out a long-term roadmap for the company, including a possible sale. Suitors include engineering firm Larsen & Toubro, which holds a 12% stake in Satyam, BK Modi's Spice Group and the Hindujas.
    State Farm Insurance, which had a contract worth about $80 million with Satyam, terminated the deal recently on concerns about the Hyderabad company's future. Other outsourcing vendors of the US-based insurer are now vying for the contract. deepshikha.monga@timesgroup.com