WHO finds no proof of fraud in Satyam contracts

The World Health Organisation (WHO) has said it has found no evidence of fraudulent practices by its vendor Satyam, even as the UN body began a review of contracts awarded to the Indian IT company.

Besides a $55.5 million global management system (GSM) project, where Satyam was the key vendor, WHO had awarded three other contracts totalling nearly $400,000 to the Indian firm, a WHO spokesperson told PTI from Geneva.

"Satyam is bidding for one future contract, unrelated to GSM," the official said.

Responding to queries on whether the fraud at Satyam would affect the IT firm's dealings with WHO, the spokesperson said: "WHO is reviewing carefully its current contractual agreements with Satyam and possible contingency arrangements for completion of GSM project work, in the event that Satyam were no longer able to perform."

Satyam has been debarred by World Bank, while it has been suspended from the vendor database of the UN Secretariat.

The company founded by Ramalinga Raju, who is in jail pending probe into an accounting fraud disclosed by him, also came in for criticism from the Comptroller and Auditor General of India (CAG) for its tardy implementation of a project at WHO.

CAG, which was external auditor to WHO, flagged a number of risks associated with the execution of the GSM project.