Click to play videoNew Delhi: After the Satyam Computers fiasco, corporate governance is under the scanner in India Inc.
Not only has Securities and Exchange Board of India (SEBI) asked that the accounts of all Sensex and Nifty listed companies be checked more closely, it now emerges that another IT giant Wipro also had a fall out with the World Bank.
Wipro on Monday disclosed that it has been banned for four years from doing business with the World Bank dealing another blow to India Inc's image.
The World Bank said Wipro had given "improper benefits to bank staff" while offering 1,750 American Depository Shares worth $72,000 at lower price, which is basically a bribe for orders received or for future orders.
What has come as a huge shock is that the ban was imposed in 2007, but Wipro chose to make it public only after the Satyam fiasco came to light. However, Wipro's feigning no wrong doing is unlikely to help India's dented image.
"We approached World bank through the Chief Information Officer and another senior staff based on that recommendation we offered 1750 share at the market price and it wasn't concession at all - $41.375 totalling about $72000 and they were required to give a statement that it in conflict of interest of policy violation of their own companies. They did. So it was issued. So Wipro has done no wrong," claimed Wipro's Chief Financial Officer Suresh Senapaty.
Along with Wipro, Megasoft, a Hyderabad based IT company, Nestor Pharmaceuticals and Gap International also had to face World Bank's ire.
Satyam has already been banned for eight years for data theft and bribery. Now even business honchos like Anil Ambani are joining the chorus for better corporate governance.
"Peer review of audits of Sensex and Nifty companies would give confidence to global investors and significantly add to establishing the quality of financial reporting in the country," said Anil Ambani, Chairman, Reliance Anil Dhirubhai Ambani Group.
For India Inc wanting to be counted amongst the best in the world the writing is clear - improve corporate governance and transparency in business deals.
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