Indian IT companies see another major setback in their reputation when yesterday World Bank disclosed information about banning more Indian IT companies to do business with them. Recently, we all came to knew about Satyam being banned. And now it is Wipro, one of the largest Indian IT company as other four Indian entities barred by the World Bank are Megasoft Ltd, a product-based technology company also based in Hyderabad, Nestor Pharmaceuticals, Gap International and an individual, Surendra Singh.
World bank cited in their disclosure that Wipro is banned because it had had “provided improper benefits to Bank staff”. Wipro had not disclosed the four-year ban imposed on it in July 2007 to investors. But in their current press release Wipro said, the company offered American Depository Shares to World Bank officials during its initial public offering in the U.S. eight years ago. That transaction, Wipro says, was in accordance with Securities & Exchange Commission rules, and the World Bank investors signed a statement saying their purchase didn't violate any conflict-of-interest policies.
On the other hand Megasoft said it had had no business from World Bank since 2004 and hence, there was no financial impact on the company due to the ban.
A note to be consider about World Bank banning various firms around the world:
The UK tops list of firms and individuals debarred by World Bank from contracts financed by it.Thirty-seven UK firms and individuals are among 111 entities banned by the bank for varying periods Indonesia follows with 18 firms & individuals. There are 10 firms from the US, five from Russia. Only one firm each from Germany and South Korea. Most companies have been banned under a clause that deals with fraudulent practice.
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