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.

Friday, January 19, 2007

TJX Companies, a U.S. chain, that owns big box stores Winners, a fashion outlet, and HomeSense, a home accessories store, has revealed they had their computers hacked back in mid-December.

It also affected the U.S. and Puerto Rico stores Marshalls, T.J. Maxx, HomeGoods and A.J. Wright, which are also owned by TJX Companies. The intrusion could also affect stores in the United Kingdom and Ireland.

They discovered the hacking in mid-December and revealed the information to the public on Wednesday.

“The company is committed to providing its customers with more information when it becomes available,” TJX Companies said in a statement.

The computers contain credit card, debit card, check, and merchandise return transactions information. The hacker could have accessed transactions during 2003 and from May through December 2006.

Jefferies analyst Timothy Allen said the chain should use this as an opportunity for excellent customer service. He added that they should offer coupons to customers to get them back to shopping in stores owned by TJX.

Customers with questions can call one of the help lines at 866-484-6978 in the United States, 866-903-1408 in Canada, and 0800-77-90-15 for the United Kingdom and Ireland.

Saturday, February 17, 2007

A trio of freshmen at a New York design school say that residents aren’t taking advantage of a valuable and countless resource found all around the world: stoops.

In Sit Here, a campaign inspired by a recent class project, Sarah Feldman, Chelsea Briganti and Essence Rodriguez are using fliers placed around New York to encourage residents and visitors to get to know one another on their stoops.

Wikinews got a chance to talk to Sarah Feldman, web designer for the project. Feldman is also responsible for getting different news sources to contact the team, such as the Brooklyn Papers and New York Magazine.

Wikinews: When your group started this project, did you ever expect it would get this much publicity from the press and the public?

Feldman: We had no idea how popular this would become. We just thought it was another usual school project we had to do. The Brooklyn Record saw the topic about our website I posted on a Park Slope message board. They talked about it and put our URL on their site. Then The Brooklyn Papers found us on the Brooklyn Record. A lot of press found us because of the article in the Brooklyn Papers. We didn’t know if it was just the Internet that caused all the fuss, but then a blogger on OnlyTheBlogKnowsBrooklyn and some photographer on Flickr found our fliers!

Wikinews: You originally started this project in New York City. If you could run this project in any other city (or country) in the world, which one would it be, and why?

Feldman I’d run this project in my hometown, Houston. Now there you will find few people outside. For one thing, it is hot and we are known for one of the most obese cities in the USA. Houston has also coined the term “The Driving City”: no walking…just driving. If you ask my friends there, “Hey…you wanna go outside and sit?” They’d look at you funny and say “Can’t we just go see a movie or go on Facebook?”

Wikinews: Your fliers are bright green, which makes them very noticeable. Out of the thousands of people who see your fliers each day, how many people do you think actually sit down and talk?

Feldman: Not enough. Most of the time the people who I saw sitting were either outside of a bar or kids playing ball. But I rarely saw any kids except on Sundays in Park Slope outside. Probably they were watching TV or on the Internet. Chelsea noticed this first. She came up with the idea when she saw an elderly man sitting on his stoop by himself. She started talking to him about his life there and he brought up the topic of less socialization with neighbors.

Sit Here has been noticed in at least 15 different news sources, including Wikinews.

Thursday, August 21, 2008

On Thursday, 15-year-old student, Ryan McDonald, was shot and killed. The shooting occurred at just after 8:00am (UTC-5), at Central High School, in Knoxville, Tennessee.

According to Deputy Chief of Police of the Knoxville police department, William C. Roehl stated that the shooting was not “random” and that “they had contact with one another”. The shooting which occurred 8:11am (UTC-5), followed a confrontation in the cafeteria. Police arrived on the scene at 8:13am, and the suspect was taken into custody at 8:17am. McDonald was taken to the University of Tennessee Medical Center where he died at 8:57am, according to the police.

Police have arrested Jamar B. Siler, also 15, and charged him with first-degree murder. Judge Tim Irwin set September 17, 2008 as the trial date. Siler is being held at a juvenile detention center.

Kevin Perry, a pastor at Word of Life Ministries, said he had spoken to a student who witnessed the shooting.

“He saw them when they were arguing and pushing and shoving,” Perry said, recounting what the student had told him. “He didn’t see the guy shoot him. What he did see was the guy fall.”

Another high school student, Chad Griffin, was ten feet away from where the confrontation occurred and said that “he [McDonald] got shot and started walking and he was holding his chest. There was blood everywhere. And then he fell and his arm hit me.”

The school was preparing to release students, and bring them to a local church were they could be picked up by their guardians. Central High School has around 1,400 students.

Tuesday, February 1, 2005

Feel free to use the Wikimedia sites to solve our Wikinews crossword (Please do not fill it out online as it would spoil it for other people, print it out and fill it in at you own leisure!)

If you like, you can follow the instructions on Crosswords/Across Lite to download and solve today’s crossword on your computer.

Today’s crossword in Across Lite TEXT format (warning – contains answers!).

< Yesterday’s crossword.

Tuesday, December 2, 2008

Chicago, Illinois police arrested William Balfour, the estranged brother-in-law of Oscar-winning American actress and singer Jennifer Hudson, on Monday, multiple media outlets reported. Balfour is expected to be charged with three counts of murder for the slayings of three of Hudson’s relatives in October.

“We have obtained an arrest warrant for William Balfour. He was released to Chicago detectives,” Chicago Police Department spokeswoman Monique Bond told Reuters.

Hudson’s mother, Darnell Donerson, 57, and brother, Jason Hudson, 29 were found dead in Donerson’s home on October 24 and the body of Hudson’s 7-year-old nephew, Julian King was found four days later in a stolen SUV. A handgun police say is tied to the case was found nearby, but Reuters reports that Bond did not comment on any evidence in the case.

The Associated Press reports that police took Balfour into custody on Oct. 24 and held him for 48 before the Illinois Department of Corrections took possession of him on an alleged parole violation. Balfour previously served nearly seven years for a 1999 conviction attempted murder, vehicular hijacking, and possessing a stolen vehicle. CNN reports he was out of jail on parole at the time of the shootings.

Balfour’s mother, Michelle Davis-Balfour, spoke to the press Monday night, saying she thought that there was no case against her son.

“If they found gun powder on his hands, you got a case; if they found a gun on him, he had a case; if they found a fingerprint on the truck that he did this, you got a case; but they don’t have nothing,” Davis-Balfour said, according to the Associated Press. She also said: “My son did not do this. I am sick of this. They need to focus on somebody else.”

Davis-Balfour also accused at least one witness of lying while providing an alibi for his son, saying he was with one of three girls friends when the killings happened.

“He was with Diana that night and with Kate in the morning,” she said, according to CNN.

Attorney for Balfour, Josh Kutnick, told CNN that his client is innocent. “He believes when the evidence comes out, he will be found not guilty,” Kutnick told CNN.

Hudson became famous in 2004 when she was one of the finalists on the third season of the American hit television show American Idol. She later won multiple awards for her role in the 2006 motion picture Dreamgirls.

Friday, April 25, 2008

On Wednesday, long-time White House correspondent Helen Thomas questioned White House Press Secretary Dana Perino bluntly and repeatedly about United States President George W. Bush’s recent confirmation that he had approved CIA interrogation policies that included waterboarding.

“Where is everybody?” asked Thomas, apparently frustrated with lack of attention her colleagues had given the issue. The community at the social news site reddit answered “Here we are”; a message they plan to deliver along with several thousand dollars in flowers and other gifts.

Thomas’s questions became front-page news on reddit this morning, via a Think Progress blog post that includes a C-SPAN 2 video clip of Thomas during yesterday’s press briefing. Noting the president’s repeated assertion that the U.S. does not torture, Thomas characterized the authorized interrogation techniques as torture.

“Now he has admitted that he did sign off on torture, he did know about it,” said Thomas, “so how do you reconcile this credibility gap?”

Perino reiterated that the “United States has not, is not torturing any detainees in the global war on terror.”

Whether waterboarding, among other techniques, should be categorized as torture has been a subject of political contention in recent months. Thomas was unequivocal, responding to Perino: “That’s not my question. My question is, why did he say publicly ‘we do not torture’, when he really did know that we do?”

In appreciation of the reporter asking “A REAL QUESTION” (as the headline put it), reddit users (known as “redditors”) have collected over $3,000 for the purchase of flowers, edible arrangements and other gifts. Several ‘redditors’ also claimed to have ordered flowers for Thomas independently.

The bulk of the money was collected through Chipin.com, on a donation page created Micah Fitch, a musician and graphic designer in Minneapolis, Minnesota. As of publication, the site registered 400 contributors for a total of $3,125. Fitch also created a wiki, FlowersWiki, for organizing the gift purchases and selecting messages to go with them. A large delivery to the Washington D.C. offices of Thomas’s employer Hearst Newspapers is being scheduled for Friday morning.

One redditor claims that a friend who works for The Daily Show is pitching the story to the show’s staff.

This is not the first time Thomas has received a high-volume flower gift. In 2006, an e-mail campaign that began on the political website Democratic Underground collected over $2000 and resulted in delivery of 108 dozen roses.

Wednesday, December 21, 2011

Former Salt Lake City mayor and human rights activist Rocky Anderson took some time to discuss his 2012 U.S. presidential campaign and the newly-created Justice Party with Wikinews reporter William S. Saturn.

Anderson served as mayor of Salt Lake City for eight years (2000–2008) as a member of the Democratic Party. During his tenure, he enacted proposals to reduce the city’s carbon emissions, reformed its criminal justice system, and positioned it as a leading sanctuary for refugees. After leaving office, Anderson grew critical of the Democratic Party’s failure to push for impeachment against President George W. Bush, and for not reversing policies on torture, taxes, and defense spending. He left the party earlier this year and announced that he would form a Third party.

Anderson officially established the Justice Party last week during a press conference in Washington D.C.. He proclaimed “We the people are powerful enough to end the perverse government-to-the-highest-bidder system sustained by the two dominant parties…We are here today for the sake of justice — social justice, environmental justice and economic justice.” The party promotes campaign finance reform and is attempting to appeal to the Occupy Wall Street movement. It is currently working on ballot access efforts, and will hold a Founding Convention in February 2012 in Salt Lake City.

Among other issues, Anderson discussed climate change, health care, education, and civil liberties. He detailed his successes as mayor of Salt Lake City, stressed the importance of executive experience, and expressed his views on President Barack Obama and some of the Republican Party presidential candidates. He spoke in depth about former Massachusetts governor Mitt Romney, with whom he worked during the 2002 Winter Olympics, and fellow Utahan, former governor and U.S. ambassador to China Jon Huntsman, Jr..

Thursday, April 15, 2010

Hundreds of thousands of air travelers had their travel plans disrupted in Europe by volcanic ash from the Eyjafjallajökull eruption.

Tens of thousands of air travelers were stranded when all flights into and out of the United Kingdom were grounded, as it became one of the first nations to be affected. The grounding was even more extensive than that following the September 11 attacks of 2001 when only trans-Atlantic flights were canceled.

Eurocontrol released a statement saying “…most air traffic in the United Kingdom, Ireland, Denmark, Norway and Sweden is suspended.”

The grounding is because the volcanic ash drawn into the jet stream is of a particle size which allows it to remain aloft in the atmosphere. Ingestion of this foreign matter, because of its distribution, would lead to flame outs in all aircraft engines. The composition of the ash also means that it would first melt into glass if it were to enter the engine of an aircraft before solidifying again as it cooled. This could lead to damage to the compressors and fan blades, which would make it impossible to restart the engines, even if the aircraft were to exit the cloud.

The current contingency is informed by the experience of British Airways Flight 9, which on June 24, 1982 suffered just such complete engine flame outs when it flew through the plume of Mount Galunggung in Indonesia. In that case, the flight crew after many efforts was able to restart the engines, though one failed shortly after, and the aircraft landed without casualties.

The UK National Air Traffic Services (NATS) has stated that “restrictions will remain in place in UK controlled airspace until 1300 (UK time) tomorrow, Friday 16 April, at the earliest,” and that “We will review further Met Office information and at 0230 (UK time) tomorrow we will advise the arrangements that will be in place through to 1800 (UK time) tomorrow.” The NATS statement concluded “…the situation cannot be said to be improving”.

In addition to Northern Europe, the ash is drifting south; Berlin and Hamburg airports in Germany are closed, and airports in the Netherlands, Belgium and Northern France are described as now being closed or closing. Some flights from Spain and Portugal, together with upwards of 4,000 flights across Northern Europe, have been affected, and the knock-on effect of aircraft and crews out of position could disrupt air travel worldwide for up to 72 hours.

One affected group are British musicians booked to play at this weekend’s Coachella Festival in California. Amongst those stranded are Frightened Rabbit, Gary Numan, The Cribs and Bad Lieutenant.

Wednesday, September 5, 2007

A Proton rocket which was intended to launch the JCSAT-11 satellite into a geostationary transfer orbit lifted off and successfully completed its first stage burn, but the second stage failed leading to loss of the rocket and satellite.

The launch vehicle was a Proton M booster with a Breeze M upper stage. More than 300 Proton rockets have been launched, all from the Baikonur Cosmodrome in Kazakhstan. Following the launch failure, Kazakhstan suspended the launch of Proton rockets from Baikonur, Interfax news agency reported.

JSAT Corporation immediately placed an order with Lockheed Martin, the satellite manufacturer, for an identical replacement satellite based on the A2100AX design.