The Satyam Saga: Head likely to be announced soon

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The Corporate Affairs minister has revealed that the government appointed board is close to finalizing the new head of Satyam Computers.

Following media reports, speculations are rife that former Tata Chemicals Managing Director Homi R. Khusrokhan and Partho S Datta, ex-group head of Murugappa group, will take the helm of the beleaguered company. The position of the head will not be called chief executive and the two will be part of the team which will tackle the company’s current woes like ailing employee morale and deserting clients. It is believed that Mr. Khusrokhan and Mr. Datta will perform the functions of the CEO and the CFO respectively.

The new board, which had shortlisted three people last week for the post of the chief, has also announced that it would outline the management structure this week.

The board has also reiterated that the company can sustain itself financially without the need of a government bail-out package.

In developments pertaining to the investigation, the regional Provident Fund Office (PFO) approached the police to register a case of breach of trust against Satyam. According to PFO officials, Satyam had not paid its shares of the employees’ provident fund money which amounted to Rs. 7.5 crore. The official also revealed that according to the PFO records, Satyam keeps PF accounts of 43,622 employees with them – confirming speculations that the former promoter had inflated employee counts.

It has also come to light that the government believes that some of the people involved in the scam might flee the county in order to escape the law, as per a private newspaper.

Meanwhile, a parliamentary committee questioned the Reserve Bank of India why a fraud of such magnanimity went unnoticed by the regulators. The committee, which held the meeting on the 28th, will continue with the proceedings on the 4th of February.