2000 jobs in doubt

Alex de Vos
Plans to create 2000 jobs in Geelong were under a cloud yesterday after the boss of an IT giant admitted to falsifying accounts in a scandal dubbed “India’s Enron”.
A spokesperson said State Government was seeking urgent talks with Indian company Satyam about the future of its proposed computer complex at Deakin University’s Waurn Ponds campus.
Premier John Brumby helped now-disgraced Satyam head Ramalinga Raju announce the Deakin project in April.
At the launch Mr Brumby said Satyam would spend $75 million building the 10-hectare complex to create 2000 jobs.
The first batch of staff were meant to start work at Deakin this year.
Premier John Brumby said the complex would be one of the largest IT investments in Australia and would boost Victoria’s economy by $175 million annually within 10 years.
Mr Raju resigned on Wednesday after admitting his Hyderabad-based software services firm had falsified accounts and assets and inflated its profits over several years.
Media reports said Satyam had overstated its cash and bank balances by more than $1.38 billion on its latest end-of-year balance sheet.
Deakin University acting vice chancellor John Rosenberg said he was unsure what the Satyam turmoil meant for Geelong.
“I really don’t know – it’s only just hit the news,” Mr Rosenberg said.
“But we’re working closely with the Victorian Government and my guess is it might be some time before it becomes clear.”
In a media statement, Mr Raju apologised to “all Satyamites and stakeholders, who have made Satyam a special organisation, for the current situation”.
“I am now prepared to subject myself to the laws of the land and face consequences thereof,” he said.
Satyam shares plummeted almost 80 per cent after Mr Raju’s announcement.
Satyam did not return the Independent’s call before the paper went to press yesterday.