mynewhopeumc.org

Tuesday, January 3, 2017

Yaakov Neeman, an Israeli politician who served as justice minister and finance minister under Prime Minister Benjamin Netanyahu, died in his Jerusalem home on Sunday. He was 77.

Born in 1939 in Tel Aviv, Neeman, alongside future President Chaim Herzog, founded law firm Herzog, Fox and Neeman in 1972. He was appointed finance minister in 1979, a position he held until 1981. He was later appointed justice minister by Netanyahu, based on his legal training and loyalty.

Unusually for a senior minister, he had never served in the Knesset. He held the job for two months before resigning; he was being investigated for perjury. Michael Ben-Yair, Attorney General of the day, launched the probe after Neeman testified at a bribery trial. Neeman was cleared.

Neeman regained the Justice Ministry post in 1997, resigning again the next year. He blamed insufficient support from Netanyahu and resumed law. In 2009 Netanyahu was reelected, again appointing Neeman minister of justice. In 2013 this role passed to the Hatnua party’s Tzipi Livni.

Neeman’s last resignation, in 2013, came as he was under investigation by the Israel Tax Authority for evading tax via his law company. The Tel Aviv Magistrates Court ultimately acquitted him.

Outside law and politics Neeman was also an industrialist. He worked with Israel Aircraft Industries, airline El Al, and the Israel Atomic Energy Commission. In 1986 he was credited as key to convincing business partner Herzog, who was then president, with pardoning members of the Israel Security Agency; after a bus was hijacked, security forces shot dead two Palestinians once the hijack had concluded.

Neeman specialised in tax law. A fluent English speaker, he had degrees from the Hebrew University of Jerusalem and New York University. His wife and six children survive him.

Current President Reuven Rivlin spoke of a good lawyer and advisor whose wisdom he had sought as recently as last week. “The entire Justice Department bows his head”, said current Justice Minister Ayelet Shaked. Herzog’s son Isaac Herzog, leader of the opposition Zionist Union, spoke of “a tender-hearted, broad-minded and generous man” who “was a mentor and close friend for tens of years.”

Knesset Speaker Yuli Edelstein said Neeman was “a unique figure in our public life, blessed with talent and pleasantness, who believed in his heritage and his people with his entire body.” Netanyahu called Neeman “one of the senior jurists in the country, of a sharp mind and a warm Jewish heart.”

Sunday, May 21, 2006

Lordi, described as “cartoon metalheads” wearing latex monster masks, beat runner-up Russian “heart throb” Dima Bilan to win this year’s 51st Eurovision song contest held in Athens, Greece. Bosnia’s Hari Mata Hariwas came third.

In a spectacular show, hosted by Maria Menounos and Sakis Rouvas, Lordi amassed 292 points after a public vote – 44 ahead of Russia. Greece’s singer Anna Vissi, who was one of the favourites to win, came 9th, followed by Ireland’s Brian Kennedy. From the start of the song contest as well as during the televoting, the Greek organisers presented viewers choreographies and dances inspired by Greek culture and music, both ancient and modern. In addition, the world famous Greek singer Nana Moushouri was presented by the hosts and gave the sign for the start of televoting.

Wielding spark-spewing instruments, the “Monster-themed” rock band beat 23 other competitors, scoring 292 points from telephone voters in 38 countries with its song “Hard Rock Hallelujah” in a performance that both shocked and amused viewers.

A spokesperson for Lordi said: “We won the contest, looking like this,” he said. “It just goes to show that Europe is not such a bad place.” The Finnish band thanked viewers for voting for their song, which featured the lead singer hoisting a double-headed-axe microphone stand above his head. The win has been dubbed as a “radical departure” from the catchy pop tunes, folk songs and emotional ballads normally associated with Eurovision.

Complete with distorted guitars, a catchy chorus and “mock-demonic imagery,” Lordi is reminiscent of 1970s American band Kiss – an inspiration acknowledged by lead singer Mr Lordi. “What this has shown is that there are different styles of music than just pop and rock,” Mr Lordi told news media after the surprise victory. “That should be the goal of Eurovision,” he said.

Mr. Lordi, whose real name is Tomi Putaansuu, hails from Lapland and says his band’s masked personas are just characters. “The guys behind the masks are not interesting – underneath, there’s just a boring, normal guy who walks the dogs, goes to the supermarket, watches DVDs and eats candies. You really don’t want to see him.” he said. But the characters “live on stage and they live in a fantasy world”, he said. “This element of mystery is one of the cornerstones of Lordi.”

The band has upset many Finns with their outrageous behaviour. “This is a victory for rock music… and also a victory for open-mindedness,” Mr Lordi said. “For the millionth time, we’re not Satanists or devil worshippers. This is entertainment. The masks are like our calling card and we’ll never perform without them. It would be like Santa Claus handing a child his gifts at Christmas time and then pulling off his beard…”

The 51st annual Eurovision was broadcast live across Europe, watched by an estimated 100 million viewers. Regarded by many as the “contest good taste forgot,” Eurovision is adored by fans of kitsch and camp everywhere.

Lordi join the likes of Abba, Bucks Fizz, Dana and Celine Dion on the elite list of Eurovision winners.

Because of Lordi’s first place finish, next year the 52nd Eurovision Song Contest will take place, for the first time, in Helsinki, Finland.

Monday, August 15, 2005

Oregon State University (OSU) animal researchers in conjunction with the U.S. Department of Agriculture‘s (USDA) Dubois, Idaho-based Sheep Experiment Station released a report on an OSU-USDA study which was initiated in 1995 after breeders asked the government to determine why some rams bought as breeding studs showed no interest in females. The researchers are working under a $2.8 million grant from the National Institutes of Health in hopes of developing a test which can determine the likelihood of a ram being female-oriented before it is sold as a stud.

By studying difference in the animal’s brains after slaughter, the study also showed what could be a biological determiner for what makes a ram male-oriented instead of female-oriented sexually. The scientists’ results showed that the anterior preoptic area of the rams’ hypothalamus was 50 percent smaller in male-oriented rams as opposed to female oriented rams. A 1991 study of human brains of AIDS victims showed a similar hypothalamus size difference between gay and heterosexual men.

The sheep researchers postulate that low levels of aromatase hormones in the brain of a developing male sheep fetus may have kept the brain from fully masculinizing, leading to sexually male-oriented rams.

“This lends further support to the idea that homosexuality has biological underpinnings,” Charles Roselli, a professor of physiology and pharmacology, said in an interview with the Corvallis Gazette-Times.

Professor Stormshak believes that “understanding sexual drives and the continuum of sexual behavior could possibly help explain the scientific basis of sexual assault [and] put an end to assertions that homosexuality is a lifestyle choice.”

Saturday, October 20, 2007

Dell Inc. announced on Tuesday that it will partner up with the Microsoft-Nortel Innovative communications alliance (ICA) team to sell Unified Communications and VoIP products.

The announcement on Tuesday the 16th of October 2007 includes Dell selling VoIP, data and wireless networking products from Nortel and the Microsoft Office Communications Server 2007 and other unified communications products.

The partnership with both manufacturers should allow Dell to provide a pre-integrated solution.

In March 2007, competitors IBM and Cisco announced they would join in the competition for developing unified communications applications and the development of open technologies around the unified communications and collaboration (UC2) client platform an application programming interfaces (APIs) offered by IBM as a subset of Lotus Sametime.

“We want to make it simple for our customers to deploy unified communications so their end users can get access to all their messages in one place – whether its e-mail, phone or mobile device. This will pave the way for more business-ready productivity tools,” said vice president of solutions, Dell Product Group, Rick Becker.

• Customers have four options:
  • Core Office Communication Server 2007 – provides instant messaging and on-premise Microsoft Live Meeting.
  • Office Communication Server: Telephony – enables call routing tracking and management, VoIP gateway and public branch exchange (PBX) integration.
  • Audio and Video Conferencing – allows point-to-point conference, video conference and VoIP audio conference.
  • Exchange Unified Messaging – provides voicemail, e-mail and fax in Microsoft Outlook, and anywhere access of Microsoft Outlook Inbox and Calendar.

Friday, May 16, 2008

Controversy has arisen over the reported presence of blue asbestos on the MV Freewinds, a cruise ship owned by the Church of Scientology. According to the Saint Martin newspaper The Daily Herald and the shipping news journal Lloyd’s List, the Freewinds was sealed in April and local public health officials on the Caribbean island of Curaçao where the ship is docked began an investigation into the presence of asbestos dust on the ship. Former Scientologist Lawrence Woodcraft supervised work on the ship in 1987, and attested to the presence of blue asbestos on the Freewinds in an affidavit posted to the Internet in 2001. Woodcraft, a licensed architect by profession, gave a statement to Wikinews and commented on the recent events.

According to The Daily Herald, the Freewinds was in the process of being renovated by the Curaçao Drydock Company. The article states that samples taken from paneling in the ship were sent to the Netherlands, where an analysis revealed that they “contained significant levels of blue asbestos”. An employee of the Curaçao Drydock Company told Radar Online in an April 30 article that the Freewinds has been docked and sealed, and confirmed that an article about asbestos ran in the local paper.

Lloyd’s List reported that work on the interior of the Freewinds was suspended on April 27 after health inspectors found traces of blue asbestos on the ship. According to Lloyd’s List, Frank Esser, Curaçao Drydock Company’s interim director, joined Curaçao’s head of the department of labor affairs Christiene van der Biezen along with the head of the local health department Tico Ras and two inspectors in an April 25 inspection of the ship. “We are sending someone so that they can tell us what happened, where it came from, since when it has been there,” said Panama Maritime Authority’s director of merchant marine Alfonso Castillero in a statement to Lloyd’s List.

The Church of Scientology purchased the ship, then known as the Bohème, in 1987, through an organization called Flag Ship Trust. After being renovated and refitted, it was put into service in June 1988. The ship is used by the Church of Scientology for advanced Scientology training in “Operating Thetan” levels, as well as for spiritual retreats for its members. Curaçao has been the ship’s homeport since it was purchased by the Church of Scientology.

According to his 2001 statement, Lawrence Woodcraft had been an architect in London, England since 1975, and joined Scientology’s elite “Sea Organization” (Sea Org) in 1986. He wrote that he was asked by the Sea Org to work on the Freewinds in 1987, and during his work on the ship “noticed a powdery blue fibrous substance approximately 1 ½” thick between the paint and the steel wall,” which he believed to be asbestos. He also discovered what he thought was blue asbestos in other parts of the ship, and reported his findings to Church of Scientology executives. Woodcraft discussed his experiences in a 2001 interview published online by the Lisa McPherson Trust, a now-defunct organization which was critical of the Church of Scientology.

Church of Scientology spokeswoman Karin Pouw responded to Radar Online about the asbestos reports, in an email published in an article in Radar on May 1. “The Freewinds regularly inspects the air quality on board and always meets or exceeds US standards,” said Pouw. She stated that two inspections performed in April “confirmed that the air quality is safe,” and asserted that the inspections revealed the Freewinds satisfies standards set by the United States Occupational Safety and Health Administration and the U.S. Clean Air Act.

Pouw told Radar that “The Freewinds will be completing its refit on schedule.” The Church of Scientology-affiliated organization Citizens Commission on Human Rights (CCHR) had been planning a cruise aboard the Freewinds scheduled for May 8, but according to Radar an individual who called the booking number for the cruise received a message that the cruise had been delayed due to ongoing work on the ship. Citing an article in the Netherlands Antilles newspaper Amigoe, Radar reported on May 6 that a team from the United States and supervised by an independent bureau from the Netherlands traveled to Curaçao in order to remove asbestos from the Freewinds.

“I stand by everything I wrote in my 2001 affidavit,” said Lawrence Woodcraft in an exclusive statement given to Wikinews. Woodcraft went on to state: “I would also comment that if the Church of Scientology claims to have removed the blue asbestos, I just don’t see how, it’s everywhere. You would first have to remove all the pipes, plumbing, a/c ducts, electrical wiring etc. etc. just a maze of stuff. Also panelling as well, basically strip the ship back to a steel hull. Also blue asbestos is sprayed onto the outer walls and then covered in paint. It’s in every nook and cranny.”

Many Scientologist celebrities have spent time aboard the Freewinds, including Tom Cruise, Katie Holmes, John Travolta, Kelly Preston, Chick Corea, Lisa Marie Presley, Catherine Bell, Kate Ceberano, and Juliette Lewis. Now magazine reported that Tom Cruise has been urged to seek medical attention regarding potential asbestos exposure, however a representative for Cruise stated he has “absolutely no knowledge” of the recent asbestos controversy. Cruise, Holmes, Travolta and Preston have celebrated birthdays and other events on the Freewinds.

In a May 15 statement to the United Kingdom daily newspaper Metro, a representative for the Church of Scientology said that “There is not now and never has been a situation of asbestos exposure on the Freewinds.” The Asbestos and Mesothelioma Center notes that agencies have recommended anyone who has spent time on the Freewinds consult with their physician to determine if possible asbestos exposure may have affected their health.

Raw blue asbestos is the most hazardous form of asbestos, and has been banned in the United Kingdom since 1970. Blue asbestos fibers are very narrow and thus easily inhaled, and are a major cause of mesothelioma. Mesothelioma is a form of cancer which can develop in the lining of the lungs and chest cavity, the lining of the abdominal cavity, or the pericardium sac surrounding the heart. The cancer is incurable, and can manifest over 40 years after the initial exposure to asbestos.

“This is the most dangerous type of asbestos because the fibres are smaller than the white asbestos and can penetrate the lung more easily,” said toxicologist Dr. Chris Coggins in a statement published in OK! Magazine. Dr. Coggins went on to note that “Once diagnosed with mesothelioma, the victim has six months to a year to live. It gradually reduces lung function until the victim is no longer able to breathe and dies.”

Monday, June 5, 2006

Australian media reports that Prime Minister John Howard is expected to push a nuclear energy inquiry through federal cabinet this week. Meanwhile, a list of possible sites for nuclear reactors has been leaked by the Opposition to media. The locations, listed in 1997, include Adelaide, Darwin, Perth, Lucas Heights, Goulburn, Holsworthy, and Broken Hill in New South Wales and other sites.

West Australian (WA) premier Alan Carpenter says the list of fourteen potential sites were a “facade to soften up Western Australians into accepting a nuclear waste dump.” The WA Premier said people would not only be surprised but “stunned to learn that the federal cabinet considered possible sites… without disclosing them to any state government.”

Mr Carpenter said in a media release that the document mentions a site near Perth airport. “People should wake up to what’s happening around Australia, particularly in WA,” said Mr. Carpenter. “Only a few weeks ago, we had three prominent WA Liberal MPs supporting a nuclear waste dump in WA,” he said. “This is all a facade in the Howard Government’s push to soften up West Australians for a nuclear waste dump.”

Premier Carpenter, whose Labor government stridently opposes uranium mining in WA, stated his opposition to a nuclear waste dump: “I vehemently oppose the prospect of our State becoming the dumping ground for the world’s nuclear waste and that is what will happen if we allow uranium mining in WA. The evidence is mounting and indisputable.”

The South Australian Government has ruled out any possible nuclear power plant in SA. “A nuclear power plant would bankrupt our state,” SA Premier Mike Rann said. “It would not be commercially viable and would not, in my view, be acceptable to the public. Nuclear power plants need giant populations to sustain them, there is no-one coming to me from the commercial sector or the mining industry or anywhere else, suggesting a nuclear power plant.”

Earlier, Foreign Affairs Minister Alexander Downer said South Australia should build a nuclear power station to run a desalination plant. Premier Rann dismissed the idea as ridiculous and said comments by Mr Downer highlight divisions within Federal Cabinet. He said Mr Downer is at odds with the Federal Finance Minister Nick Minchin, who says the high costs of nuclear power would rule it out.

Mr Rann says South Australia will not allow nuclear power. “For once I’m agreeing with Nick Minchin,” he said. “I think Nick Minchin is right that a nuclear power plant isn’t necessary and won’t happen and I think that Alexander Downer is having a bit of a lend of him.”

Victoria’s Energy Minister Theo Theophanous said nuclear energy in Australia did not make sense when the cost and problems of waste disposal were considered. Mr Theophanous has rejected a report that found nuclear power could be competitive with conventional energy generation if it was subsided with help from a taxpayer subsidy.

A recent report found nuclear power could compete with gas or coal-fired electricity if taxpayers helped to pay for it or shouldered the risk of its production. The ANSTO report found nuclear plants could be built in the next 10 to 15 years and an Australian version would cost about $2.5 billion to establish. To make it viable, taxpayers would pay hundreds of million towards start-up costs, said the report.

But Mr Theophanous said Victoria had already had concluded the nuclear proposal did not add up. “I had my department look at this and provide a report to me more than a year ago in relation to the prospect of nuclear power,” he said. “The problem is a commercial one as much as anything else. It costs roughly double the price to produce power out of nuclear energy. If you’re going to pay double the price, why not put in wind farms? Why not use renewable energy, which is even cheaper than nuclear energy?” said Mr Theophanous .

The Victoria Government urges householders to reduce greenhouse emissions by reducing daily energy consumption. A new campaign identifies simple measures residents can adopt to cut power bills and greenhouse emissions, including turning the heating thermostat to no more than 20C, washing clothes in cold water and turning appliances off at the switch when they are not being used.

New South Wales Premier Morris Iemma has also declared his opposition to nuclear power. He said no nuclear power stations would be built in NSW as long as he is premier. Mr Iemma urged state opposition leader Peter Debnam to join him in opposing the construction of nuclear power plants in NSW. “While ever I’m premier of NSW there won’t be any nuclear power plants in NSW,” he told reporters.

Queensland Premier Peter Beattie says he “would not jeopardize the state’s coal industry by supporting a nuclear power plant.” Mr. Beattie has ruled out uranium mining in Queensland to protect the state’s huge coal industry. He said he would not support a nuclear power plant. “The State Government would not support it,” Mr. Beattie said.

“We have the power to block them and we would block them, we would not support nuclear power. Why would we have a nuclear reactor in competition with the coal industry?” Mr. Beattie told media.

Saturday, April 16, 2005

The Food and Drug Administration (FDA) has penned a stiff reminder to drug giants Bayer Pharmaceuticals Corp. and GlaxoSmithKline PLC: pull your 15-second “reminder” ad for the erectile dysfunction drug, Levitra, off TV.

FDA said there is no evidence Levitra is better than rival drugs Viagra from Pfizer, or Cialis, owned by Eli Lilly and Co., in producing results that make female partners happy.

Levitra and Cialis together control about 30 per cent of the market for such drugs, but Pfizer takes the majority share.

Reminder ads can only call attention to a drug, not claim it works better, or at all.

“In one of [the ad’s] scenes, the man strokes the woman’s hair and face as she affectionately puts her hand on his wrist,” the FDA wrote. “In the other, she puts her arms around his neck and they embrace.”

“The totality of the TV ad also represents or suggests that Levitra will provide a satisfying sexual experience from the female partner’s perspective,” the agency wrote.

Glaxo spokesman Michael Fleming said the drug makers would comply. Bayer developed Levitra and partnered with Glaxo to market the pills in 2001. Bayer recently turned its part of the promotion over to Schering-Plough Corp.

Shares of Bayer fell 75 cents to $32.96 on Friday. Shares of GlaxoSmithKline rose 32 cents to close at $47.82. Schering-Plough shares rose 8 cents to end at $20.65.

Monday, January 12, 2009

Byrraju Ramalinga Raju, founder and chairman of Satyam Computer Services, and his brother, B. Rama Raju, the company’s managing director, were arrested late Friday by Andhra Pradesh police. The brothers were placed under judicial custody in a Hyderabad, India jail and will remain there until January 23. Facing charges of criminal breach of trust (Section 406 of IPC), criminal conspiracy (Section 120-B), cheating (Section 420), falsification of records and forgery (Section 468), and fraudulent cancellation of securities (Section 477-a), they face up to ten years imprisonment if convicted.

After 18 hours of interrogation by the Crime Investigation Department (CID) at the state police headquarters, the Raju brothers were sent to the Chanchalguda prison and slept Saturday night on the floor along with 26 other low-risk inmates.

S. Bharat Kumar, the Rajus’s lawyer, asked the magistrate to issue orders for health monitoring. “His blood pressure is fluctuating and he needs medical treatment,” said Bharat Kumar. Mr. Raju appeared before the court Saturday while a team of doctors visited him after he had complained of chest pain.

Raju has Hepatitis-C, and both brothers have high blood pressure, so health precautions are necessary while imprisoned. Prison rules mandate service of jail food thrice a day. The menu includes 650 gm of rice thrice a day with 250 gm of vegetable curry and 125 gm of ‘daal’ plus tea twice a day.

Satyam’s chief financial officer Vadlamani Srinivas, who was also arrested Saturday, had undergone preliminary investigation and appeared Sunday before a special court, according to A. Sivanarayana, Andhra Pradesh additional director general of police. Srinivas was remanded to judicial custody until January 23 by Mr. D. Ramakrishna, Sixth Chief Metropolitan Magistrate, and sent to the Chanchalguda jail with the Raju brothers after interrogation by CID’s Crime Branch (the CB-CID). During his Saturday night arrest and probe by CB-CID, Srinivas made revelations which are contained in his confession letter as submitted to Network 18. “According to me fixed deposits are unreal and fictitious which were managed and was an understanding between the audit section management,” Srinivas stated.

The Hyderabad court on Monday postponed the bail hearings of the Raju brothers and Srinivas to January 16. To be defended by a battalion of 25 lawyers, the three accused will remain in Chanchalguda Central Jail until further court order. The Raju brothers were shifted Sunday to a mid-size Old Hospital Barrack cell shared with a bootlegger.

In 2008, the company struggled to purchase two infrastructure companies founded by family members of company founder and CEO Dr. Raju – Maytas Infrastructure and Maytas Properties – for $1.6 billion, despite concerns raised by independent board directors. Dr. Raju tendered his resignation on January 7 after due notice of falsified accounts to board members and the SEBI.

Since January 7 when two lawsuits were commenced, dozens of other class action law suits were filed against Satyam for hundreds of millions of dollars damages based on fraud in the United States District Court for the Southern District of New York in Manhattan, among others. The securities fraud class-action lawsuits have been filed on behalf of investors who bought Satyam American Depositary Receipts (ADRs) since 2004.

On Wednesday Dr. Raju admitted to falsifying and overstating Satyam’s cash reserves by $1B US dollars (£661m) or 94% of its cash and bank balances on books at the end of September.

The fraud was perpetrated several years ago to bridge “a marginal gap” between actual and accounting books operating profits, and continued for several years. “It was like riding a tiger, not knowing how to get off without being eaten,” B. Raju said.

In a letter to the board, Dr. Raju said that neither he nor the managing director had benefited financially from the inflated revenues. Further claiming that none of the board members had any knowledge of the dire company situation, he noted that Satyam’s balance sheet as of the September 30, 2008, carried inflated figures for cash and bank balances of INR 5,040 crore (as against INR 5,361 crore reflected in the books). He alleged it also carried an accrued interest of INR 376 crore which was non-existent. He confessed that he himself prepared an understated liability of INR 1,230 crore on account of funds amid an overstated debtors’ position of INR 490 crore (as against INR 2,651 crore in the books).

Indian analysts have compared the Satyam-Raju scandal to the infamous American Enron scandal. Immediately following the media expose, PricewaterhouseCoopers, auditor of Satyam’s accounts, was set to be probed for complicity in the controversy. Times Now has reported that the Andhra Pradesh CID arrested PricewaterhouseCoopers (PWC) representative Gopal Krishnan for investigation on Saturday night.

New York-listed Satyam Computer Services Ltd., India’s fourth-biggest software firm, is a consulting and information technology services company based in Hyderabad, India. Founded in 1987 by Dr. Byrraju Ramalinga Raju, Satyam’s network spans 67 countries on six continents. It employs 53,000 professionals in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. Its monthly salary outflow is estimated at six billion rupees ($125 million). Deriving more than half of its revenues from the United States, it serves 700 global companies, 185 of which are Fortune 500 corporations.

Satyam’s clients include Nestle, Ford, General Electric Co., General Motors Corp., Nissan Motor Co., Applied Materials Inc., Caterpillar Inc., Cisco Systems Inc. and Sony Corp., and brought in about $40bn last year.

In December 2008, a failed acquisition attempt involving the company Maytas led to a plunge in Satyam’s share price. After Wednesday’s confession, Satyam stocks fell further by more than 70%, while the BSE SENSEX dropped to 7.3% Wednesday, causing the removal of Satyam Computer Services from its indices on Thursday. The shares free fell to 11.50 rupees on Friday, their lowest level since March 1998, compared with around last year’s high of 544 rupees.

The New York Stock Exchange has terminated trading in Satyam stock as of January 7, while the National Stock Exchange of India said it will remove Satyam from its S&P CNX Nifty 50-share index from January 12.

India’s biggest-ever corporate fraud has seriously tainted India Inc.‘s strong corporate governance image. “The admission of fraud in financial affairs has created an adverse impression in the minds of trade, business and industry across the world,” the Indian government admitted. The government intervened on Friday night, dismissing Satyam’s board of directors, announcing it will appoint representatives to manage the affairs of the insolvent outsourcing giant. The board would meet within seven days. Dr Yeduguri Samuel Rajasekhara Reddy, chief Minister of State of Andhra Pradesh, India, on Sunday said that the main agenda is to protect the jobs of the software professionals. “We are taking all needful steps in coordination with the government of India to ensure that the jobs of 53,000 engineers are protected and the shareholders’ money is salvaged,” Reddy said.

“We are working on the names. The Satyam case is an aberration. The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.” Prem Chand Gupta, the Corporate Affairs Minister said. The Federal Government of India appointed a three-member independent board with full authority for Satyam on Sunday and was set to convene within 24 hours. “We have appointed Deepak Parekh, chairman of Housing Development Finance Corporation, Kiran Karnik, former president of IT industry body NASSCOM and C. Achutan, former member of Securities and Exchange Board (SEBI) of India,” Mr. Gupta said.

In early Monday trading (0535 GMT) after the creation of the three-member board, Satyam shares rocketed upwards 60% to 38.15 rupees, even though the main Mumbai market was down more than 2%. BBC reported that Satyam shares have jumped 51% to 36.05 rupees on Monday after the stock lost 87% last week. “The constitution of the new board is seen as a positive step by the market. It’s a confidence boosting measure,” K.K. Mital, Globe Capital, New Delhi head of portfolio management services said. “But the rally will depend largely on the financial situation at the company and the kind of measures that are taken to improve liquidity,” he added.

The Company Law Board, however, has requested Satyam’s interim board not to implement its decisions. “We are asked by the Company Law Board not to implement the decisions of the board. But we are allowed to continue our activity. The team which was constituted recently is continuing its work,” Satyam head global marketing and communications, Mr. Hari Thalapalli, said.

Lazard Ltd., who has a 7.4% stake in Satyam, sought representation on the new board and wrote as much to The Indian Ministry of Corporate Affairs. “As the largest shareholder in the company, we want to be consulted in whatever decisions are being taken by the Indian government. We have written to the Ministry of Corporate Affairs and are awaiting a reply from them,” Hitesh Jain, a partner at ALMT Legal, who claimed to represent Lazard, said. “It is a fair proposal and we will take a decision as and when we clear other issues. No decision on this has been taken yet,” P.C. Gupta replied.

Meanwhile, the Securities and Exchange Board of India (SEBI) also announced it will try to control the damage and take steps to boost investor confidence. “This exercise will be undertaken after the third quarter results and is expected to be completed by end of February this year,” a SEBI official statement said. A SEBI team is also investigating acting-CEO Ram Mynampati whose salary was greater than that of founder Dr. Raju and all the directors combined. Dr. Raju had just one fifth of Mynampati’s total package of over Rs 3.5 crore as of March 2008. All the directors comparably received only a total of Rs 2.6 crore as salary, commissions, sitting fees, professional fees and other receivables.

Further, the Andhra Pradesh Police CID and teams assigned by the Economic Offences Wing of the CB-CID conducted searches Sunday of homes of the accused including the ex-CFO’s office to gather documentary evidence about the financial fraud.