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Monday, January 12, 2009

Byrraju Ramalinga Raju, founder and chairman of Satyam Computer Services, and his brother, B. Rama Raju, the company’s managing director, were arrested late Friday by Andhra Pradesh police. The brothers were placed under judicial custody in a Hyderabad, India jail and will remain there until January 23. Facing charges of criminal breach of trust (Section 406 of IPC), criminal conspiracy (Section 120-B), cheating (Section 420), falsification of records and forgery (Section 468), and fraudulent cancellation of securities (Section 477-a), they face up to ten years imprisonment if convicted.

After 18 hours of interrogation by the Crime Investigation Department (CID) at the state police headquarters, the Raju brothers were sent to the Chanchalguda prison and slept Saturday night on the floor along with 26 other low-risk inmates.

S. Bharat Kumar, the Rajus’s lawyer, asked the magistrate to issue orders for health monitoring. “His blood pressure is fluctuating and he needs medical treatment,” said Bharat Kumar. Mr. Raju appeared before the court Saturday while a team of doctors visited him after he had complained of chest pain.

Raju has Hepatitis-C, and both brothers have high blood pressure, so health precautions are necessary while imprisoned. Prison rules mandate service of jail food thrice a day. The menu includes 650 gm of rice thrice a day with 250 gm of vegetable curry and 125 gm of ‘daal’ plus tea twice a day.

Satyam’s chief financial officer Vadlamani Srinivas, who was also arrested Saturday, had undergone preliminary investigation and appeared Sunday before a special court, according to A. Sivanarayana, Andhra Pradesh additional director general of police. Srinivas was remanded to judicial custody until January 23 by Mr. D. Ramakrishna, Sixth Chief Metropolitan Magistrate, and sent to the Chanchalguda jail with the Raju brothers after interrogation by CID’s Crime Branch (the CB-CID). During his Saturday night arrest and probe by CB-CID, Srinivas made revelations which are contained in his confession letter as submitted to Network 18. “According to me fixed deposits are unreal and fictitious which were managed and was an understanding between the audit section management,” Srinivas stated.

The Hyderabad court on Monday postponed the bail hearings of the Raju brothers and Srinivas to January 16. To be defended by a battalion of 25 lawyers, the three accused will remain in Chanchalguda Central Jail until further court order. The Raju brothers were shifted Sunday to a mid-size Old Hospital Barrack cell shared with a bootlegger.

In 2008, the company struggled to purchase two infrastructure companies founded by family members of company founder and CEO Dr. Raju – Maytas Infrastructure and Maytas Properties – for $1.6 billion, despite concerns raised by independent board directors. Dr. Raju tendered his resignation on January 7 after due notice of falsified accounts to board members and the SEBI.

Since January 7 when two lawsuits were commenced, dozens of other class action law suits were filed against Satyam for hundreds of millions of dollars damages based on fraud in the United States District Court for the Southern District of New York in Manhattan, among others. The securities fraud class-action lawsuits have been filed on behalf of investors who bought Satyam American Depositary Receipts (ADRs) since 2004.

On Wednesday Dr. Raju admitted to falsifying and overstating Satyam’s cash reserves by $1B US dollars (£661m) or 94% of its cash and bank balances on books at the end of September.

The fraud was perpetrated several years ago to bridge “a marginal gap” between actual and accounting books operating profits, and continued for several years. “It was like riding a tiger, not knowing how to get off without being eaten,” B. Raju said.

In a letter to the board, Dr. Raju said that neither he nor the managing director had benefited financially from the inflated revenues. Further claiming that none of the board members had any knowledge of the dire company situation, he noted that Satyam’s balance sheet as of the September 30, 2008, carried inflated figures for cash and bank balances of INR 5,040 crore (as against INR 5,361 crore reflected in the books). He alleged it also carried an accrued interest of INR 376 crore which was non-existent. He confessed that he himself prepared an understated liability of INR 1,230 crore on account of funds amid an overstated debtors’ position of INR 490 crore (as against INR 2,651 crore in the books).

Indian analysts have compared the Satyam-Raju scandal to the infamous American Enron scandal. Immediately following the media expose, PricewaterhouseCoopers, auditor of Satyam’s accounts, was set to be probed for complicity in the controversy. Times Now has reported that the Andhra Pradesh CID arrested PricewaterhouseCoopers (PWC) representative Gopal Krishnan for investigation on Saturday night.

New York-listed Satyam Computer Services Ltd., India’s fourth-biggest software firm, is a consulting and information technology services company based in Hyderabad, India. Founded in 1987 by Dr. Byrraju Ramalinga Raju, Satyam’s network spans 67 countries on six continents. It employs 53,000 professionals in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. Its monthly salary outflow is estimated at six billion rupees ($125 million). Deriving more than half of its revenues from the United States, it serves 700 global companies, 185 of which are Fortune 500 corporations.

Satyam’s clients include Nestle, Ford, General Electric Co., General Motors Corp., Nissan Motor Co., Applied Materials Inc., Caterpillar Inc., Cisco Systems Inc. and Sony Corp., and brought in about $40bn last year.

In December 2008, a failed acquisition attempt involving the company Maytas led to a plunge in Satyam’s share price. After Wednesday’s confession, Satyam stocks fell further by more than 70%, while the BSE SENSEX dropped to 7.3% Wednesday, causing the removal of Satyam Computer Services from its indices on Thursday. The shares free fell to 11.50 rupees on Friday, their lowest level since March 1998, compared with around last year’s high of 544 rupees.

The New York Stock Exchange has terminated trading in Satyam stock as of January 7, while the National Stock Exchange of India said it will remove Satyam from its S&P CNX Nifty 50-share index from January 12.

India’s biggest-ever corporate fraud has seriously tainted India Inc.‘s strong corporate governance image. “The admission of fraud in financial affairs has created an adverse impression in the minds of trade, business and industry across the world,” the Indian government admitted. The government intervened on Friday night, dismissing Satyam’s board of directors, announcing it will appoint representatives to manage the affairs of the insolvent outsourcing giant. The board would meet within seven days. Dr Yeduguri Samuel Rajasekhara Reddy, chief Minister of State of Andhra Pradesh, India, on Sunday said that the main agenda is to protect the jobs of the software professionals. “We are taking all needful steps in coordination with the government of India to ensure that the jobs of 53,000 engineers are protected and the shareholders’ money is salvaged,” Reddy said.

“We are working on the names. The Satyam case is an aberration. The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.” Prem Chand Gupta, the Corporate Affairs Minister said. The Federal Government of India appointed a three-member independent board with full authority for Satyam on Sunday and was set to convene within 24 hours. “We have appointed Deepak Parekh, chairman of Housing Development Finance Corporation, Kiran Karnik, former president of IT industry body NASSCOM and C. Achutan, former member of Securities and Exchange Board (SEBI) of India,” Mr. Gupta said.

In early Monday trading (0535 GMT) after the creation of the three-member board, Satyam shares rocketed upwards 60% to 38.15 rupees, even though the main Mumbai market was down more than 2%. BBC reported that Satyam shares have jumped 51% to 36.05 rupees on Monday after the stock lost 87% last week. “The constitution of the new board is seen as a positive step by the market. It’s a confidence boosting measure,” K.K. Mital, Globe Capital, New Delhi head of portfolio management services said. “But the rally will depend largely on the financial situation at the company and the kind of measures that are taken to improve liquidity,” he added.

The Company Law Board, however, has requested Satyam’s interim board not to implement its decisions. “We are asked by the Company Law Board not to implement the decisions of the board. But we are allowed to continue our activity. The team which was constituted recently is continuing its work,” Satyam head global marketing and communications, Mr. Hari Thalapalli, said.

Lazard Ltd., who has a 7.4% stake in Satyam, sought representation on the new board and wrote as much to The Indian Ministry of Corporate Affairs. “As the largest shareholder in the company, we want to be consulted in whatever decisions are being taken by the Indian government. We have written to the Ministry of Corporate Affairs and are awaiting a reply from them,” Hitesh Jain, a partner at ALMT Legal, who claimed to represent Lazard, said. “It is a fair proposal and we will take a decision as and when we clear other issues. No decision on this has been taken yet,” P.C. Gupta replied.

Meanwhile, the Securities and Exchange Board of India (SEBI) also announced it will try to control the damage and take steps to boost investor confidence. “This exercise will be undertaken after the third quarter results and is expected to be completed by end of February this year,” a SEBI official statement said. A SEBI team is also investigating acting-CEO Ram Mynampati whose salary was greater than that of founder Dr. Raju and all the directors combined. Dr. Raju had just one fifth of Mynampati’s total package of over Rs 3.5 crore as of March 2008. All the directors comparably received only a total of Rs 2.6 crore as salary, commissions, sitting fees, professional fees and other receivables.

Further, the Andhra Pradesh Police CID and teams assigned by the Economic Offences Wing of the CB-CID conducted searches Sunday of homes of the accused including the ex-CFO’s office to gather documentary evidence about the financial fraud.

Monday, February 25, 2013

Carbon monoxide poisoning is thought to have been the cause of the deaths of three people and one Jack Russell dog in a caravan park in Cornwall in South West England. Cornwall Fire and Rescue Service (CFRS) were alerted to the incident in Tremarle Home Park in the town of Camborne at 12:56 UTC on Saturday.

Inspector David Eldridge said Devon and Cornwall Police were alerted to the caravan park incident after “a helper had been unable to get a reply from an elderly couple who lived in the caravan”. He said that upon their arrival, “We were able to see that there was a figure sat in a chair but they were unresponsive to knocks at the door.” CFRS workers called to the area “forced entry into the property and found that the three occupants were all dead”, Inspector Eldridge said. A hazardous material advisor was also present at the scene in North Roskear. The Health and Safety Executive is now investigating the incident but the deaths are not considered as being of a suspicious nature.

The three fatalities have been identified as Audrey Cook, aged 86, her husband Alfred, aged 90, and Maureen, their 46-year-old daughter. David Biggs, a member of Camborne Town Council, said the incident came as “a shock” to him; Tremarle Home Park is “a well established facility and is very well run”, according to him. Biggs described the loss of three lives as an “appalling tragedy”.

The incident came five days after Cornwall Council announced its Family Placement Service would launch a joint venture with Cornwall Fire and Rescue Service to place carbon monoxide detectors in the houses of foster carers. The programme, entitled ‘Be Gas Safe’, has seen 200 carbon monoxide detectors and 2000 leaflets to raise awareness about carbon monoxide being given to CFRS. Mark Blatchford, Group Manager of CFRS, said: “We have seen a big increase in the number of carbon monoxide incidents in Cornwall over recent years”. He described carbon monoxide detectors as being “as important as a smoke alarm as it provides a valuable early warning”.

Carbon monoxide is a poisonous, colourless, tasteless and odourless gas which is created when such carbon-based fuels as oil, gas, coal and wood are not completely incinerated. The human body’s capacity to hold oxygen in the blood can be reduced by inhalation of the gas, which in turn may cause death. The Gas Safe Register has said dizziness, headaches, queasiness, lack of ability to breathe, fainting and losing consciousness are all symptoms of a person experiencing carbon monoxide poisoning.

Thursday, August 24, 2006

South Auckland Tyndale Park Christian School have been asking parents of the pupils for permission to administer corporal punishment. The parents are informed that corporal punishment is illegal in New Zealand schools but it quotes the Bible “we ought to serve God rather than men”. Strapping children has been illegal since 1989.

“When this law was changed. . . exceptions were not given based on whether a school believed it was serving ‘God rather than men’. The Education Ministry should investigate allegations that trustees and staff at an Auckland school have sought permission from parents to strap children. It appears to me the school is deliberately breaking the law,” Green Party Member (MP), Sue Bradford, said.

Today the New Zealand Herald reported that they had obtained documents that outline the school’s “corporal correction” policy. The policy states that the strap must be given on the hand after consultation with another staff member and while that staff member is present. The child will then either be spoken to, prayed with or both.

Bradford said: “A full investigation was needed to ascertain whether any students at the school had been assaulted.”

Tyndale Park Christian School is a private Christian school that caters for students ranging from Year 1 to Year 13. The costs range from NZ$708-$1070 per term.

Jan Brinkham, school manager, said: “Our enrollment policy is between the parents who enroll children here and ourselves. We are not a state school; we are not bound by a particular enrollment policy,” but declined to talk or comment to the New Zealand Herald about the schools corporal punishment. “This is between the parents that enrol their children at our school and that is where the buck stops. It’s got nothing to do with anyone else except our parents,” he added.

The Education Review Office (ERO) and the Ministry of Education said that they were unaware of the policy and that private schools are not legally obliged to produce documents to government bodies.

ERO last year said in a report: “The school manager should ensure that parents are clearly informed that the school administers no corporal punishment.”

Charlene Scotti, ERO area manger of review services said: “Some schools had policies to call parents in for cases where corporal punishment was required, but were careful not to include staff in punishing students.”

Bruce Adin, Ministry of Education northern regional manager, said: “The legality of the Tyndale Park document was unclear, but if school staff strapped a student it would be illegal.”

“Corporal punishment in schools was made illegal years ago because it was considered to be brutal and unnecessary,” Bradford said.

Sunday, December 13, 2015

Macomb, New York Councilman Steve Burke took some time to speak with Wikinews about his campaign for the U.S. Democratic Party’s 2016 presidential nomination.

Burke, an insurance adjuster and farmer, was elected councilman in Brookhaven, New York in 1979. He left the town after being accused and found not guilty of bribery in the 1980s. Since 1987 he has served as Macomb councilman off-and-on and currently holds the post. From 1993 to 1996 and 1999 to 2002 he worked as chairman of the Democratic Party of St. Lawrence County, New York. Among his many political campaigns, Burke unsuccessfully sought the Democratic Party’s presidential nomination in 1992 and recently attempted to run for U.S. Congress in 2014 but too many of his ballot petition signatures were found invalid. Burke filed with the Federal Election Commission to run for president in the 2016 election on September 18, 2015 and has qualified for the first-in-the-nation New Hampshire Primary.

With Wikinews reporter William S. Saturn?, Burke discusses his political background, his 2016 presidential campaign, and his policy proposals.

Wednesday, October 4, 2006

The US Army Corps of Engineers decision to place restrictions on issuance of nationwide pollution permits has been upheld by a federal court. In National Association of Home Builders v. Army Corps of Engineers, the District Court for the District of Columbia found that the Corps of Engineers had not acted in an “arbitrary” or “capricious” manner in changing the terms and conditions for issuance of a national pollution permit, including reducing the size of area into which pollutants may be discharged from 10 acres to 1 acre, raising the threshold for requiring additional permits from 1 acre to 1/10 acre,

A nationwide permit allows an organization to engage in certain industrial activities on a national basis (such as mining and construction), reducing the amount of paperwork and filings needed for otherwise minor environmental impacts, as opposed to an ordinary permit for a specific location which will engage in activities which generate water pollution.

Due to concerns over the amount of discharge taking place in waterways, the Corps of Engineers began in the 1980s to reduce the authority granted by nationwide permits and to bar use of the permits in certain ecologically sensitive areas.

Some industry groups, including the plaintiff in the above case, The National Association of Home Builders, sued the Corps of Engineers in 2000 over the change in an attempt to block its implementation. Environmental groups, including the Sierra Club, were given permission to intervene in the case in support of the actions of the Corps.

Environmental groups were pleased with the decision, but are concerned over other actions of the Bush Administration, such as the attempts to weaken provisions of the 2002 Clean Water Act to allow additional dumping of construction and mining waste into waterways as fill material.

Monday, September 4, 2006

Saturday, September 2nd, Wellington held a computer recycling day for free hosted by computer maker, Dell. Now Auckland is looking to host one of their own.

During the recycling day, sponsored by Environment Ministry and Computer Access New Zealand Trust, Dell New Zealand took in more than 30 tonnes of obsolete equipment by 1,200 people at Wellington’s Westpac Stadium. Instead of the equipment going to a landfill where it is unable to decompose and will leak chemicals into the ground, 97% of all equipment collected will be recycled.

Susan McGregor, an Auckland City Council spokesperson, said: “There is a regional forum looking into waste disposal; but to date there is only a scheme for hazardous material to be collected separately by the council. It [the council] would welcome computer companies taking some responsibility for disposing of old computer ware.”

Dell has indicated it will hold another PC clean up next year.

According to Dell, out of the 6.3 million New Zealand computers, 250,000 of them are old and obsolete, mainly because most computer owners, according to a survey, will upgrade their computers every two to five years.

Sydney, Australia had recently hosted one of their own computer recycling days; however Wellington’s event was four times more successful.

Saturday, December 3, 2005

Mayor Scott Jewell of the city of Dyer, Tennessee did not issue a “stop work order” to Dyer Grain Company late Tuesday afternoon as had been expected. The order would have temporarily halted construction of new grain storage tanks.

Dyer Grain’s efforts at expansion have been blocked several times over the past few years both by zoning restrictions on the height of structures and by citizens groups who filed suit against the grain company and the city’s board of zoning appeals. The lawsuit was dismissed two months ago. The Dyer City Council then amended the zoning ordinance to include “grain storage tanks and bins” in a section of the ordinance listing exclusions, such as free standing spires and towers, to the regular 40 foot height restriction on buildings.

Several citizens spoke at the November 28 city council meeting to address alleged deficiencies in the building permit issued to Dyer Grain. The citizens claimed that according to the site plan filed with the application for the permit, the location of the tanks will violate another provision in the zoning ordinance restricting the height of all structures to the distance from surrounding property lines plus ten feet. The citizens were also concerned over a “grain conveyor” that will cross a city street. Mayor Jewell indicated that he would contact the Gibson County building inspector (who is contracted by the city to act as the municipal inspector) to research the citizens’ concerns.

Jewell contacted Ricky Bailey, Gibson County Building inspector, on Wednesday. Bailey reportedly could find no deficiencies with the permit and, based on this advice, Jewell chose not to issue the stop work order himself. The City Council could still meet and vote to issue the order. The council meets the second Monday of each month.

“The main problem is that the grain company is in an industrial zone — which is located smack in the middle of a low-density residential zone.” Nathan Reed, an elected Alderman of Dyer said, “The property values in the area have increased (with inflation) but not at the same rate as other properties.”

Normal buildings, such as offices and warehouses, can’t exceed 40′ plus 10′ to the eave. The requested change in the ordinance changes the status of the towers from a building to the same status of an antenna or tower.

Mr Reed added, “The height to the eave is 76′, the height to the top of the tank is 105′, the height to the top of the elevator (atop the tank) is 133′. The 133′ is the only measurement that matters now because the change to the zoning ordinance means this is no longer a “building”, but rather the same as an antenna or tower.”

“The grain company specifically requested that change to the ordinace — which was opposed by several citizens…They can build it as high as they like so long as it conforms to the overal height restriction for towers, spires, etc.”

Mr Reed commented on additional concerns, “The citizens are concerned about the health effects of (additional) grain dust, noise, and grain explosions.”

The new construction is expected to generate annual property tax revenues of $10,000 to $16,000.

Saturday, February 26, 2005

Princeton, New Jersey —According to Ryan Walsh, editor of the websites for both the Princeton Journal of Science and American Foreign Policy, internet news service Wikinews was the topic of a report by Federico Baradello in a Princeton University course on mass media and public policy. The course, offered through the Woodrow Wilson School of Public and International Affairs, studies “the impact of policy on the content, presentation, influence, and technology of a rapidly-evolving 21st century news media,” according to the school.

Walsh, currently a junior at Princeton, characterized the report in an email to Wikinews user Pingswept as “great” and added that “everyone in the class seemed to enjoy learning about Wikinews, and Federico was a great speaker.”

According to an email from Baradello, the report, which took place on Monday, 21 February 2005, provided a “basic overview of its history (evolution), ownership, viewership, and position in the news market.” It included a live demonstration of adding new content to Wikinews. The barebones content provided in the demonstration was developed into this article.

Baradello’s report is available on the course’s blog. His final course paper on the decentralization of news gathering includes a case study on Wikinews with commentary from Jimmy Wales and will be available in PDF form by late May.

Monday, September 6, 2010

President Alvaro Colom says torrential downpours causing flooding and landslides have undone the country’s reconstruction from Tropical Storm Agatha in May. Up to eighteen people are reported killed in rain-related incidents across the country as weather systems in both the Gulf of Mexico and the Pacific batter the region, and forecasters expect another 48 hours of precipitation. At least ten people were killed, 20 rescued, when a landslide buried a bus as it traveled on the Inter-American highway in the worst single-incident.

Sources

• “Heavy rains devastate Guatemala” — BBC, September 4, 2010
• Reuters. “Torrential rains kill 18 in Guatemala” — Toronto Star, September 4, 2010

Five people are dead, 39 injured after a suicide bombing in the Dagestan Republic of the North Caucasus. The information is still unfolding, and earlier reports had three killed, 26 injured. The attack occurred at 00:30 local time (20:30 UTC) when a Zhiguli car packed with explosives drove into the gates of a military base near Buynaksk. AFP reports a second explosion nearby on a nearby highway, but with no injuries.

Sources

• “Death toll in N.Caucasus suicide bombing rises to five (Update 1)” — Ria Novosti, September 5, 2010
• “5 killed, 39 injured in Dagestan suicide bombing” — AFP, September 5, 2010

The Arizona Cardinals US football team has released Heisman trophy-winner Matt Leinart after being unable to find a favorable trade. Leinart had been unable to break out of the back-up quarterback role with the team after early injuries kept him on the sideline for a couple years, and expressed his frustration publicly on Monday. The Cardinals, forced to trim their team roster to 53 players, cut Leinart leaving him without a team.

Sources

• Bob Baum. “Arizona Cardinals release quarterback Matt Leinart” — Cape Cod Times, September 4, 2010
• Judy Batista. “Leinart, With Career Full of Disappointment, Is Now Without Team” — New York Times, September 4, 2010

After driving away from police, a thirteen-year-old driver struck a pole, plowed through a couple of fences, and bumped a parked car into the house before coming to a rest at the front door. Police spokesperson Ros Wetherall reported officers attempted to stop the Holden Commodore around 1 a.m. local time (5 p.m. UTC), but had to search for the vehicle which they found crashed into the home on Grovelands Drive, Camillo. The driver and one other youth in the car were uninjured. The young man will appear in court on charges of reckless driving, failing to stop and not having a driver’s licence.

Sources

• AAP. “Boy charged after car meets house” — TheAge.com, September 5, 2010
• “Car crashes into house: 13-year-old charged” — Australian Broadcasting Corporation, September 5, 2010