Breaking News:

[soniya]

The fourth-largest Indian IT company Satyam Computer Services has been banned by World Bank says a Fox News report.

The report quotes world bank official admitting that Satyam has been barred from all business at the bank for eight years.

The World Bank debarment has been meted out for "improper benefits to bank staff" and "lack of documentation on invoices," according to Fox News report.

World Bank information security chief Robert Van Pulley admitted to the ban during a recent meeting with the officials of Government Accountability Project (GAP), a whistleblower protection organisation in the US, as per the report. The bank has handed over the case to the US Justice Department and the Treasury Department.

Satyam reportedly refused to comment on the story when cotacted, saying that it does not comment on individual clients.

Satyam started providing IT services to the World Bank in 2003. Two years later, allegations of bribery surfaced. In 2007, an internal World Bank investigation found that former VP Mohamed Muhsin had secured contracts and purchase orders worth $100 million for the Indian firm in return for Satyam's stock options (ADRs) at preferential prices. After which Muhsin was banned permanently from the bank. However, Satyam was allowed to work for the bank till 2008.

There have also been allegations against Satyam of causing security breaches at the bank. World Bank's records, which contain sensitive financial information, have reportedly been illegally accessed over the last year.

Previous Fox News reports have accused Satyam of installing spyware on World Bank workstations that would have allowed access to sensitive financial information at the bank. During the meeting with GAP officials, Pulley denied Satyam was behind any of the security breaches.

According to Fox reports the Satyam case had been turned over to the Justice Department in 2006 as well as to the US Treasury Department but no legal action against the company is known as yet.

World Bank's revelation couldn't have come at a worst time for Satyam. The company is already facing flak from investors on its decision to acquire Maytas' distressed real estate and infrastructure industries for $1.6 billion.