Satyam scam may hit $2 billion

Misreported funds at services giant may be as much as $2 billion, twice the initial figure confessed by chairman

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By  Mark Sutton Published  March 24, 2009

The amount of Satyam’s missing funds may be closer to $2 billion, rather than the $1 billion initially reported, according to investigators from India’s Central Bureau of Investigations (CBI).

The CBI has apparently uncovered over 7,000 fake customer invoices and other documents related to the scam, that had been used to inflate profits, the Economic Times reports.

The Indian outsourcing giant has been rocked by India’s biggest corporate scandal, which has seen the arrest of Satyam’s chairman, its managing director and two officials from auditors PricewaterhouseCoopers, after the chairman admitted to misreporting results over a number of years.

Investigators now believe that the amount of misreported funds is much higher than the $1 billion that Satyam chairman Ramalinga Raju had confessed to. Raju is currently in the custody of the CBI as it continues to investigate the fraud.

The news comes as Satyam officially moves to select a shortlist of bidders who have expressed an interest in buying a majority stake to bail out the company. Six companies including Larsen & Toubro, Tech Mahindra and Spice group have registered their interest.

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