Melbourne: 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.
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.
Bureau Report
First Published: Thursday, November 19, 2009, 13:53