Wipro, Megasoft join Satyam's ranks, barred by World Bank for direct contracts

In December, the World Bank said it found Satyam ineligible for direct contracts for a period of eight years, effective from last September, on grounds of bribery, fraud and business malpractice. The disclosure sent the stock of the IT outsourcer, already struggling to regain investors confidence on account of the botched $1.6 billion Maytas deal, plunging more than 10 percent. Satyam subsequently described the statement by the World Bank as inappropriate, and demanded an apology from the bank but the World Bank stood its ground.

On Monday, the World Bank made a public disclosure that it had found Wipro, India's third largest technology outsourcer and a key component of the benchmark index, ineligible for direct contracts since 2007 until 2011, citing conflict of interest policy. Similarly, the US-based Megasoft Consultants - an associate company of Bombay Stock Exchange (BSE)-listed Megasoft has also been banned from directly bidding for contracts from the World Bank for four years since 2007.

The World Bank said it had found Wipro ineligible for direct contracts four years since June 2007 as it was "providing improper benefits to Bank staff."

Megasoft, the World Bank said, was barred for an identical period beginning December 2007 for "participating in a joint venture with Bank staff while also conducting business with the Bank."

Besides Wipro and Megasoft, two non-IT companies, Delhi-based Nestor Pharmaceuticals and Gap International, and an individual, Surendra Singh, have been blacklisted for violating the World Bank's guidelines. The blacklisted names were made public by the World Bank on Monday in the interest of fairness and transparency.