12 Jan 2009

WIPRO & MEGASOFT banned by World Bank

CEans,

Its official now. Wipro & MegaSoft are two more companies to be banned by World Bank along with Satyam. Both Wipro and MegaSoft are now not eligible to received projects by the World Bank. The World Bank Group on Monday morning made public the names of all companies that have been debarred from receiving direct contracts from the Bank under its corporate procurement program. This change was made in the interest of fairness and transparency, it said.

The ineligible firms are Wipro technologies for 4 years (2007-2011) for providing improper benefits to Bank staff, Megasoft Consultants Ltd. for 4 years (2007-2011) for participating in a joint venture with bank staff while also conducting business with the Bank and Satyam Computer Services, Ltd. for 8 years (2008-2016) for giving improper benefits to bank staff and failing to maintain documentation to support fees charged for its subcontractors.

😡😡😡😡😡
shalini_goel14

shalini_goel14

Branch Unspecified
12 Jan 2009
Worried for the employees of both the companies 😔. By the way,what a bad impression World Bank got from Indian companies.
12 Jan 2009
Its not only World Bank. The whole world will now think twice before making deals with an Indian company.

I guess its the IT Bubble Burst. Is it, really?
12 Jan 2009
Confirming: Here's the press release on Wipro's Website:

Bangalore, India / New Jersey, USA, January 12, 2009
Wipro Technologies, the global IT services business of Wipro Limited (NYSE: WIT) today announced that in connection with revised disclosure policies, Wipro and the World Bank are disclosing that in June 2007 the World Bank determined Wipro to be ineligible to contest direct contracts from the World Bank for the period 2007 – 2011.

In 2000, in connection with its Initial Public Offering (IPO) of American Depository Shares (ADS) in the United States, Wipro offered a commonly utilized and Securities and Exchange Commission approved Directed Share Program (DSP) that allowed employees and clients to purchase ADSs at the IPO market price. The Program’s objective was to involve employees and customers with the public offering to expand our recognition and brand. A majority of the shares sold under the DSP were allotted to our employees.

Pursuant to this program, Wipro representatives offered the World Bank, through its Chief Information Officer (CIO) and a senior staff, participation in the program and they directed this offer to members of their family and friends. The aggregate number of shares purchased by them was 1,750 for approximately $72,000 at the IPO price. All participants in the program signed a conflict of interest statement that their purchase did not violate any ethics or conflict of interest policies of their company.

To date, Wipro’s revenue from World Bank is insignificant. Our inability to get future business from World Bank will not adversely affect our business and results of operations.
durga ch

durga ch

Communications
12 Jan 2009
my Wipro collegues out here were mentioning that World bank is not a huge client and it would not affect their business.
but it's really a disgrace that so mnay Indian bigshots are been labeled as cheaters.

may be throat cut competition and greed is leading to all this
shalini_goel14

shalini_goel14

Branch Unspecified
12 Jan 2009
Just because of few cheaters in our country , rest of the whole country which is good suffers. 😡
12 Jan 2009
Indeed, their press release confirms the same.

To date, Wipro’s revenue from World Bank is insignificant. Our inability to get future business from World Bank will not adversely affect our business and results of operations.
The actual problem is different. If World Bank says they aren't going to deal with Wipro - then its a BIG Deal! The announcement might affect their contract renewals. I hope Wipro and World Bank will set the things right.

Indian IT is in trouble for sure.
durga ch

durga ch

Communications
12 Jan 2009
shalini_goel14
Just because of few cheaters in our country , rest of the whole country which is good suffers. 😡
very true.

Know what client here is already on thier way for plan B 😔

obviously though people support you and say so, it's thier businnes which is getting affected.

Who would prefer that?
this is all really cascading.
firstly satyam being banned by world bank.
and then the 7000cr cash bubble
and then now wipro

above all. evrything at the mid of recession😔 where are these guys goign to find jobs?
MaRo

MaRo

Branch Unspecified
12 Jan 2009
I don't think the world will stop dealing with Indian companies, just they'll be more careful.
raj87verma88

raj87verma88

Branch Unspecified
12 Jan 2009
Such is the law of both gravity and time.
A thing goes up and then falls back in grime.
Rise of IT was phenomenal.
Let us hope that the loss is minimal.
Ashraf HZ

Ashraf HZ

Communications
12 Jan 2009
Time can turn back? 😛

The Indian economy is super diverse. No need to worry I think.
12 Jan 2009
Any possibilities of Layoffs at Wipro?
silverscorpion

silverscorpion

Branch Unspecified
12 Jan 2009
I think such scams and off the record things happen in every big corporation. Only they dont come out. It's almost not possible to run huge corporations without bending some rules.. Well, I dont say they are correct, I only say it might be what's happening.
aashima

aashima

Branch Unspecified
12 Jan 2009
MaRo
I don't think the world will stop dealing with Indian companies, just they'll be more careful.
I too think the same. Things will be given a second chance but it should not affect the traffic, not atleast to a considerable measure.

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