ManagementMah Satyam to repay funds of Geelong project
Mahindra Satyam is reportedly on the verge of finalising a deal to payback an undisclosed sum to the Victorian government following the collapse of a $75 million IT project in Geelong.
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According to The Australian newspaper, Satyam pledged to repay the funds given to the company by the Victorian government to lure it to Geelong after the scheme, which would have created 2000 jobs and contributed $175m to the state"s economy, was canned in September as the IT firm struggled with the global financial crisis.
While no details have been disclosed on the amounts, the newspaper said it has been confirmed the funds will soon be returned to the state"s coffers.
"Mahindra Satyam has committed to returning the grant and we expect that to occur shortly," a spokesman for Victoria Premier John Brumby said.
Satyam"s local chief Venki Prathivadi refused to divulge details and said, "I don"t want to go into specific details ...It"s confidential between the government of Victoria and Mahindra Satyam," Prathivadi said, adding "It has not been given back ... Agreements are in place and the process is in place."
The company also wants to instill financial discipline into its DNA. The new new global chief executive C P Gurnani was quoted in the paper as saying, "Customers all over the world have one common message -- they do not doubt the integrity of the employees (and) they are delighted with the delivery and service excellence," Gurnani said.