marathon06.org

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.

Sunday, October 7, 2007

Lloyd Helferty is running for the Green Party of Ontario in the Ontario provincial election, in the Thornhill riding. Wikinews’ Nick Moreau interviewed him regarding his values, his experience, and his campaign.

Stay tuned for further interviews; every candidate from every party is eligible, and will be contacted. Expect interviews from Liberals, Progressive Conservatives, New Democratic Party members, Ontario Greens, as well as members from the Family Coalition, Freedom, Communist, Libertarian, and Confederation of Regions parties, as well as independents.

Thursday, March 4, 2010

Pichilemu, Chile – Last Saturday, Chile was hit by a 8.8 earthquake. Many coastal towns were also hit by a tsunami, and Pichilemu was one of them. Its inhabitants were surprised by the giant waves that destroyed the most of the costanera and that reached the city square.

Pichilemu, that means in Mapudungun language small forest, is one of the most famous Chilean resort towns in the central zone of Chile. It is recurrently visited by surfers from all the world, because the Punta de Lobos beach is considered one of the best for surf practice worldwide.

Central Pichilemu was not severely damaged by the earthquake, but the tsunami caused significant destruction. The Fishermen Creek, located in front of the beach, was completely destroyed, and its machines are now unusable. Most of the Agustín Ross architecture that characterized the city, three of them being National Monuments of Chile, were damaged. The Agustín Ross Mirador, a famous location in front of the beach, located less than 200 meters from the Fisherman Creek, was completely destroyed. Its famous balustrades were washed away or thrown asunder. Many restaurants, kiosks and a circus were affected by the tsunami.

The rural parts of Pichilemu, like Ciruelos, Rodeillo and Espinillo feature houses constructed from adobe. Many were more than 100-years old, and were destroyed or are now uninhabitable.

The most powerful aftershock was produced almost 40 kilometers in front of the coast of Pichilemu, at the 03:10 local time (07:10 UTC) in March 2, with an intensity of 5.5 in the Richter scale, according to the USGS.

The Intendant of the O’Higgins Region, Juan Núñez, had a meeting with the Governor of the Cardenal Caro Province, Loreto Puebla, the Mayor of Pichilemu, Roberto Córdova, and naval and military authorities, juntas de vecinos representatives. They decided to leave the Carabineros police force to maintain the security of the city.

Thursday, March 17, 2005

Visibly relieved and sobbing as the verdict was read, Robert Blake was acquitted on all counts and walked out of the courtroom yesterday a free man.

Charged with murdering his wife, the jury acquitted Blake due to lack of evidence. He was also charged with two counts of soliciting to have his wife Bonnie Lee Bakley killed. The jury acquitted him on one count, and the judge dismissed the second after the jury became deadlocked in an 11-1 vote.

He was greeted by a crowd of cheering supporters outside the courthouse. The star of the television series Baretta crushed out one of his trademark cigarettes and spoke to the gathering, thanking his lawyers and private investigators who he described as, “This small band of dedicated warriors that saved my life.”

In a speech that lasted 30 minutes, he talked of having to spend $10 million for his defense and said that he was now a poor man who needed a job. The 71 year-old actor also said he was ready to “cowboy it…Get in a motor home or van, feel the wind in my hair and find a little bar in Arizona or someplace.”

The prosecution, which did not seek the death penalty, painted Blake as caught in a loveless marriage with Bakley. Tricked into marrying her by his love of their daughter Rosie, now 4, they claimed that he had felt trapped by a woman who had a history of being a low-life grifter. They alleged that Blake, frustrated after trying to find someone to kill his wife for him, killed her himself. They also claimed that he was the trigger man who, after dining with his wife in their favorite restaurant, put two bullets in her head as the two of them sat in their car outside.

The jury foreman in the trial, Thomas Nicholson, described the prosecution case against Blake as “flimsy.” He said “they could never connect all the links in the chain. We couldn’t put the gun in his hand.” Blake’s defense team was also able to successfully discredit witnesses who testified on the solicitation charges.

Friday, January 19, 2007

The world’s oldest known woman, Montrealer Julie Winnefred Bertrand, died on Thursday, passing away peacefully in her sleep.

She earned the distinction as the oldest living woman when 116-year-old Elizabeth Bolden of Tennessee, U.S.A. died on December 11, 2006.

Bertrand was born on September 16, 1891 in Coaticook, a town in Quebec’s Eastern Townships, and lived there for the majority of her life. She was the oldest of six children, and never married. She moved to Montreal after the death of her parents, and later moved into a nursing home.

She had never left her sixth-floor room in the nursing home for two years, but unexpectedly, she asked to tour the building the day before she died.

Bertrand will be buried in Coaticook.

Friday, January 12, 2007

The iPhone only made its appearance as a prototype and there have been controversies aroused.

The dispute has come up between the manufacturer of the iPhone (which was resented on Wednesday for the first time) – Apple Inc. – and a leader in network and communication systems, based in San Jose – Cisco. The company claims to possess the trademark for iPhone, and moreover, that it sells devices under the same brand through one of its divisions.

This became the reason for Cisco to file a lawsuit against Apple Inc. so that the latter would stop selling the device.

Cisco states that it has received the trademark in 2000, when the company overtook Infogear Technology Corp., which took place in 1996.

The Vice President and general counsel of the company, Mark Chandler, explained that there was no doubt about the excitement of the new device from Apple, but they should not use a trademark, which belongs to Cisco.

The iPhone developed by Cisco is a device which allows users to make phone calls over the voice over Internet protocol (VoIP).

Saturday, April 16, 2005

Defying government warnings against further demonstrations, as many as twenty-thousand Chinese protesters turned out for a second weekend of anti-Japan demonstrations in Shanghai, Hangzhou, and Tianjin.

In Shanghai, a crowd broke many windows at the Japanese consulate, according to Kyodo News. The crowd also busted up a Japanese restaurant and set its sign on fire. The protesters then attacked a convenience store, according to the Los Angeles Times.

At the Japanese consulate, the crowd chanted “jia ru, jia ru” asking the police to “join us”. The police did not arrest the protesters, and stood by watching as the demonstration proceeded. The police permitted the protesters to throw eggs and rocks. Although the police provided at one point a sign which read “March route this way,” state-controlled media denied that the protesters had been given permission for their demonstration.

Southwest of Shanghai, in the city of Hangzhou, an estimated ten thousand protesters demonstrated against Japan, repeating recent demands for a boycott of Japanese products.

“Chinese people are angry,” student protester Michael Teng told Associated Press. “We will play along with Japan and smile nicely at them, but they have to know they have a large, angry neighbor,” Teng said.

In Beijing, Tiananmen Square was largely quiet as security tightened in anticipation of tomorrow’s visit by Japan’s foreign minister, Nobutaka Machimura. Hundreds of police are guarding both Tiananmen Square and the Japanese embassy.

The Chinese Foreign Ministry issued a statement on Friday seeking to reassure Japanese citizens and businesses operating in China.

“The Chinese government has attached great importance to the situation and has kept on urging the public to express their appeals in a calm, sane, law-abiding and orderly manner and to avoid extreme activities,” Chinese State Councilor Tang Jiaxuan said in a press release issued on Friday.

As the protests continued in China, Japan lodged a “strong protest” against China.

“We cannot but say that the security system in Shanghai is insufficient,” Machimura told reporters.

Despite the protests, Machimura announced that he is not cancelling plans to meet with China’s foreign minister Li Zhaoxing on Sunday to discuss Sino-Japanese relations.

“China has been increasing its regional economic and political influence,” Robert Broadfoot, managing director of Political & Economic Risk Consultancy Ltd. told Bloomberg from Hong Kong. “Japan doesn’t want to have its position in the region dictated by China. Japan is adopting a more assertive policy, and China is trying to block it,” Broadfoot said.

On Friday, the Japanese government warned its citizens in China to keep a low profile during the protests.

Tuesday, January 22, 2008

Buffalo, New York —A woman in Buffalo, New York in the United States is in critical condition tonight at Sisters Of Charity Hospital after she accidentally set herself on fire.

The unnamed elderly woman was receiving oxygen for medical problems in her home and lit a cigarette, and the oxygen coming from her mask facilitated the ignition of her clothing, setting her on fire.

Despite her “severe” burns as described by firefighters on radio communications, she was still able to dial the emergency line in the U.S., 911.

In the U.S. only 4% of all residential fires were reportedly caused by smoking materials in 2002. These fires, however, were responsible for 19% of residential fire fatalities and 9% of injuries. The fatality rate due to smoking is nearly four times higher than the overall residential fire rate; injuries are more than twice as likely. Forty percent of all smoking fires start in the bedroom or living room/family room; in 35% of these fires, bedding or upholstered furniture are the items first ignited.