Al-zakir
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Tuesday, January 13, 2009
Two Indian companies have been barred from dealing with the World Bank over allegations of improper payments, the organisation said, in the latest revelations to hit the country's IT sector.
The companies involved are India's third-largest software firm Wipro Technologies and a subsidiary of technology outfit Megasoft India, the global financial body said in a statement on its website Sunday.
Wipro is accused of "providing improper benefits to (World) Bank staff" while Megasoft is said to have been involved in "a joint venture with Bank staff while also conducting business with the Bank".
In response, Wipro said the ban would not adversely affect its business as its revenues from the World Bank were "insignificant".
The sanction related to its listing in 2000, when it issued American depository shares to family members and friends of World Bank employees, the company said to the Mumbai stock exchange.
"They purchased 1,750 shares for 72,000 dollars and signed a statement that their purchase did not violate any ethics or conflict of interest policies of their company," it added.
The shares were offered through a "commonly utilised" programme approved by the US regulator.
The Daily Star - Details News
