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Strong corporate governance laws needed: Scindia

January 17, 2009 18:14 IST

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Minister of state for information technology Jyotiraditya Scindia said on Saturday a stronger corporate governance framework is needed to prevent Satyam-like financial frauds.

". . .I think most important is to have the measures in place to ensure something like this does not happen in terms of corporate governance across the country," Scindia told PTI. 

Asked if the government would provide aid to the beleagured IT major Satyam [Get Quote], he said, "I think its a decision that is being taken internally."

The government had, on Thursday, ruled out a swift bailout for Satyam.

"The government at this stage is not looking at any direct support or bailout to the company," economic affairs secretary Ashok Chawla had said.

Satyam's former interim chief executive officer Ram Mynampati had asked the government to provide Rs 150 crore (Rs 1.5 billion) in assistance to help meet payments on health insurance for its employees based in the US.

Satyam founder B Ramalinga Raju had, on January 7, confessed that he had cooked the company's books to the tune of over Rs 7,800 crore (Rs 78 billion) over several years, triggering India's biggest corporate governance scandal and throwing the future of the country's fourth largest computer services provider and its 53,000 employees into uncertainty.

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