Satyam Computer Services chairman B. Ramalinga Raju resigns amid scandal

By Lisa Kerner

Charlotte, N.C., Jan. 7 - Satyam Computer Services Ltd.'s chairman and founder, B. Ramalinga Raju, unexpectedly resigned after admitting he overstated the company's cash and bank balances by $1 billion and inflated profits over the last several years, it was announced on Wednesday.

What Raju called a "tremendous burden" on his conscience has scandalized the company he founded.

In a Jan. 7 letter to the Satyam board, Raju said "every attempt made to eliminate the gap" in the balance sheet failed.

"The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones," Raju said.

Raju said he is prepared to subject himself to the "laws of the land" and face the consequences.

Ram Mynampati was named interim chief executive officer, pending board approval, to manage Satyam through the crisis, the company said.

Satyam said its immediate priorities are to protect its shareholders and its 53,000 associates while meeting its commitments to customers and suppliers.

In late December, Satyam rescheduled its board of directors meeting to Jan. 10 and said the company will consider actions beyond a possible stock buyback, including strengthening Satyam's governance structure and reviewing strategic alternatives.

Satyam is a business and information technology services company based in Hyderabad, India.

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