UN in talks with Satyam for contract termination

The United Nations, which in January suspended fraud-hit Satyam Computer from its vendor database, is now likely to terminate its contract awarded on a talent management project with the IT company.
    
"Satyam continues to be suspended and Satyam and the UN are in discussion on a likely termination for convenience for the current contract," Paul Buades, Director at the United Nations Procurement Division said in an emailed statement from New York.

The software exporter was selected by the UN on the talent management project.
    
When asked about how many contracts does Satyam have with the UN, Buades said the "UN Secretariat - Procurement Division- has only one project..."

The UN has also asked one of its arms International Computing Centre (ICC) to replace the firm for its projects.
    
"The UN Secretariat has several projects under way with ICC that involve Satyam. Satyam is engaged as a sub-contractor of ICC.

"The Secretariat does not have any direct contract with Satyam for these projects. In light of recent developments concerning Satyam, we asked ICC to find a replacement for Satyam as soon as possible," Buades said.

Satyam is engaged as a sub-contractor with ICC -- which provides a wide range of Information and communication technology services, on a cost recovery basis, to its users worldwide.
    
Earlier in January, the UN had suspended from the the Secretariat's vendor database and placed all ongoing contracts with the firm under review.

"Satyam has been suspended from the UN Secretariat vendor database. The information has been communicated to the UN procurement system and the UN Global Marketplace," it had said.
   
Satyam is facing a probe by CBI into Rs 7,800-crore accounting fraud which came into light following its founder B Ramalinga Raju's confession in January that the firm has been inflating profits for many years. The company is now in the process of selling 51 per cent stake.