PricewaterhouseCoopers officials arrested over Satyam probe

Two auditors from company taken into custody by Andhra Pradesh state police

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By  Vineetha Menon Published  January 25, 2009

Two officials from PricewaterhouseCoopers have been arrested by Andhra Pradesh police in the latest twist to the Satyam investigation.

S. Gopalakrishnan and his deputy, Talluri Srinivas, were taken into custody on charges of conspiracy, failure to scrutinize records and connivance, Indian daily The Hindu reported.

Earlier this month PWC admitted that its opinions on Satyam's financial statement may be rendered “inaccurate and unreliable” after the outsourcer’s founder Ramalinga Raju admitted to falsifying company accounts to the tune of $1 billion on January 7th.

Satyam’s new board has appointed KPMG and Deloitte to restate accounts while it focuses its attention on appointing a new CEO and CFO from a shortlist of three candidates.

On Friday, the board revealed that it can arrange enough funds to keep the company running till the end of March, which will be confirmed in a formal announcement by January 28th.

Though Satyam seems to be floundering in a turbulent sea, it’s still getting a lot of attention from potential buyers. Indian engineering and construction conglomerate Larsen & Toubro has raised its stake in Satyam from 4% to 12%, while US-based outsourcer iGate has expressed its interest in buying Satyam and is currently in talks with private equity firms to fund a deal.

Full coverage

Satyam arranges finances to end of Q1
Satyam chief may have pocketed missing $1 billion
No government bail out for Satyam
Satyam reaching out to customers in Middle East
New board appointed to resuscitate Satyam
Satyam CEO and MD arrested
Satyam chairman admits falsifying accounts

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