Satyam letter: you’ll get your money back

Jessica Benton
STATE Government is confident of getting back its investment in a failed IT project at Deakin University’s Waurn Ponds campus, according to a spokesperson.
Information and Communication Technology John Lenders’ spokesperson sent the Independent a copy of a letter outlining termination plans for the $75 million Satyam IT project.
The letter stated that Indian company Mahindra Satyam, which was behind the project, was “no longer in a position to continue with this project”.
“Our current global capacity does not at this stage warrant any additional investments in infrastructure to deliver IT services,” the letter said.
Mahindra agreed to repay State Government’s contribution to the multi-million-dollar project.
“Mahindra Satyam will repay all money granted to the company by the Victorian Government under the agreement and will not make any other claims or those with Deakin University and the City of Greater Geelong,” the letter read.
The Satyam project had planned to create 2000 jobs over eight years through the opening of a $75 million software development and training centre at Deakin University.
The Government spokesperson would not reveal how much money taxpayers had invested in the project.
The spokesperson said the Government and Deakin would continue to work together to attract new investments.
Shadow treasurer Kim Wells said the Government should never have offered Satyam funding after it failed to meet Federal Government’s funding criteria.
“Something is wrong here, given the Brumby Government is saying one thing and the Rudd Government entirely another regarding the funding of the Satyam debacle,” he said.
Satyam did not meet Federal Government’s criteria for a Geelong Investment and Innovation Fund and had not formally submitted an application for the money, Mr Wells said.
“John Brumby and his ministers have not told the truth to Victorian taxpayers about the Satyam disaster and they must now come clean with Victorians on the full details of this deal.”
Indian-based Satyam almost collapsed earlier this year after authorities revealed its founder had manipulated the company’s books by more than $1 billion.