No answers from Satyam yet, but new surprises

Alex Zaharov-Reutt
Thursday, 08 January 2009 21:31

IT Industry - Strategy

Satyam’s disgraced ex-CEO is also seemingly in hiding, with the executives present admitting they didn’t know where he was, presuming only that he was still in Hyderabad, and that no complaint to police had yet been lodged.

When challenged as to why this was the case, seeing as a confession had been made in a public letter, the executives effectively said they were still going through all aspects of the business and would file a complaint in due course.

It was also admitted that Satyam’s banker, Merrill Lynch, had abandoned the company, that it would need to find a new banker, and that its cash position was very weak.

Also revealed was the information that Price WaterhouseCoopers (PwC) was still the company’s auditor, despite seemingly having presided over audits that now appear to have been patently false, and that investigations into exactly what PwC was auditing are underway.

Ultimately, the executives seem to be taking the right course of action, especially presuming that none of the new management team was in on the scam as they all claimed. 

Without a clear and true picture of the company’s actual position, the right course of action is unclear.

Still, with an 80% drop in its share price and the press baying for blood and demanding answers quickly, the new management team has very little time on its hands to stabilise the situation, get the true information out and re-assure its customers of service continuity.

No doubt Satyam’s competitors are already trying to steal its customers, placing additional pressure on the beleaguered company.

What document on Satyam's own site gives some insight into Satyam needing to eat its own dog food to perhaps get out of this mess? Please read on to page 3.