Wednesday, March 4, 2009

UN Spokesperson replies to press on UNDP Satyam Scandal

To: Inner City Press Sent: 3/3/2009 1:28:33 P.M. Eastern Standard Time
Subj: Fw: Questions on Satyam

-----Forwarded by UN Spokesperson - Do Not Reply/NY/UNO on 03/03/2009 01:28PM -----

We were informed by our Procurement Division that Satyam was suspended in January.  As per Procurement Division practice, a communication has been sent to the UN procurement system (including peacekeeping missions) and the procurement extranet site is now updated.

We also have the following information from UNDP about Satyam, received at the end of January:

UNDP's most recent contract with Satyam was signed in December 2007 for consulting work on its information systems. The contract went through the normal competitive process. This contract was set to expire after one year (November 30 2008).  In October of 2008, media articles appeared on irregularities in Satyam's work with the World Bank.   UNDP approached the World Bank and Satyam proactively to find out the details of the alleged irregularities.  As a result of these conversations, UNDP took a decision not to renew Satyam's contract and began to evaluate the phase out while minimizing the risks to our information systems.  UNDP currently has 11 Satyam technical consultants working on its information systems.

UNDP does not manage the UN Global Marketplace (UNGM), it is managed by UNOPS.  We are in the process of having the misleading or erroneous information contained on IAPWG's site removed as it unfortunately creates this perception.  UNDP can flag vendors in the UNGM should it experience problems and is currently in the process of doing so.  It is worth noting that UNDP's review of the published World Bank list of barred vendors did not turn up Satyam's name, in spite of such references in the media to Satyam having been debarred.  

In light of the most recent information regarding Satyam, UNDP, like many other companies and organizations, will not be continuing its business with them and is currently looking for a replacement.

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