Date:13/01/2009 URL: http://www.thehindubusinessline.com/2009/01/13/stories/2009011351720500.htm

Cabinet Secretary to co-ordinate Govt approach on Satyam

Our Bureau

New Delhi, Jan. 12 The Cabinet Secretary, Mr K.M. Chandrasekhar, will coordinate the Government’s approach on the Satyam fiasco.

This was decided at a meeting that the Prime Minister, Dr Manmohan Singh, held on Monday with senior Government officials on the measures that need to be taken to pull the company out of the current imbroglio.

The meeting was attended by the Securities and Exchange Board of India Chairman, Mr C.B. Bhave, and senior officials of the Finance Ministry.

“The Government will not directly provide funds to Satyam, but can facilitate the raising of capital,” the Secretary, Department of Economic Affairs, Ministry of Finance, Mr Ashok Chawla, told newspersons after the meeting.

A senior official pointed out that the funds could be “made” available from banks.

Meanwhile, the Commerce and Industry Minister, Mr Kamal Nath, termed the Satyam episode as an “isolated case”. “World over, such episodes have happened in large numbers with much higher values. Nevertheless, India has sound corporate governance that has stood the test of investment bankers, of SEC and many international organisations,” the Minister said.

Asked if the Government could look at some form of financial help to the Hyderabad-based company, he said, “Of course, there are many jobs at stake, and not only that, an entire institution is at stake…institution with a brand name…and just because one or two people have engaged in something which was wholly wrong. Government will do all it can.”

On Sunday, the Government appointed three members on board of Satyam including eminent banker, Mr Deepak Parekh, the former Nasscom President, Mr Kiran Karnik, and the ex-SEBI member, Mr C. Achutan.

“It is now for the board to come up with proposals, and package for the Government. The Government will consider,” the Minister said.

Corporate India has built a credible reputation globally and there is no question of a slur on India’s corporate governance, he said. “Government has put an eminent board to ensure that the intellectual property built by Satyam, the brand name and future of thousands of employees are viable…Government is going to look at sustainability of this,” he said.

Meanwhile, the National Council of CII at its meeting in Ahmedabad has decided to form a special task force to look at all aspects of corporate governance.