Two days ago amidst the trials and tribulations of Satyam, the WorldBank has struck again. This time it has announced to everyone that Wipro is also the subject of a four-year ban since June 2007 for providing improper benefits to bank staff. Furthermore the nature of the benefits is also revealed – shares in Wipro. Wipro have been at pains to point out that all its customers get offered shares without any concession or subsidy.
This latest revealing is alleged to have scuppered the deal Wipro were brokering with Australia’s Origin Energy.
I struggle with the concept of individuals being asked if they want to buy into vendors companies when they have a relationship and obviously something to gain (or lose) if certain decisions are taken. It doesn’t feel right, and certainly in myexperience I would have to seek permission if I was considering doing so. Perhaps this is an Indian cultural thing but it doesn’t fit with Western companies.
Again – further time for internal probing questions by CEOs within any organisations using their services!