Satyam scam: Price Waterhouse suspends its two partners

Nearly three weeks after the exposure of Rs.7,800-crore scam at Satyam Computer Services Limited, Price Waterhouse – the Indian arm of prestigious US auditing firm PricewaterhouseCooper indulged in Satyam auditing – has suspended its two arrested partners S Gopalkrishnan and Srinivas Talluri until the investigation is finished.

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Both have been arrested by the probe agency for their alleged involvement in Satyam fraud.

Releasing a statement in this regard, the firm said, “In light of recent allegations, chief relationship partner S Gopalakrishnan and engagement leader Srinivas Talluri have been suspended, pending completion of investigations into the Satyam matter.”

The duo would remain suspended till the completion of investigation of the case and till then none of them would play any part with the client matters, stated PW. They have also asked to cooperate with the police in enquiry, added statement.

In another related development, Price Waterhouse's assurance leader Thomas Mathew also preferred to vacate his chair in the light of present case. However, PW has stated that Thomas has no connection with Satyam fraud case.

In a separate statement, the firm stated that viewing the present situation, Thomas believed that it would be appropriate for him to relinquish his management position. The company would soon appoint a new assurance leader, though Mathew would remain a partner of the firm.

Moreover, the auditing firm has also assured to cooperate with the investigating agencies in India’s biggest ever corporate governance scam. “Over the last fortnight, the firm (PW) has fully cooperated in all inquiries and has provided the documents called for by the Indian authorities,” the auditing firm said in a statement.

The CID on January 13, 2009 after unearthing the Satyam fraudulent case had raided the Hyderabad office of PriceWaterhouse and seized several documents and records pertaining to Satyam accounts.

A city court of Hyderabad on January 24 has remanded the two - Gopalkrishnan and Srinivas to judicial custody till February 06, 2009.