After Satyam, we have two more firms that were barred from bidding direct contracts of World Bank. The ban on Wipro is much talked about, more so since Wipro claims to follow the highest standards of business ethics and practices in its operations.
After reading the detailed press release by Wipro, it seems that the intention of "offering" shares to its customers was driven purely to "promote" Wipro as a brand in the US. Wipro counters that all the people who participated in this offer (technically called the Direct Share Programme DSP, in the US) had signed the "non conflict of interest" certificate. This was to ensure that the purchasers (for example the WB employees) declared that this transaction did not violate their respective employer's policies. However, WB views this in other light, and therefore the ban.
Questions have been raised about the timing of the disclousure, which the company counters by stating that since WB has decided to make the hitherto private list public now, so it by itself made the disclosure to SEBI in advance. It also states that this information was duly shared with the board of directors in the July 2007 meeting.
I would have very much liked to publish the final feeling of the whole episode, but that would not be fair on my part. In any case, I will always have great faith in this organisation, and will always wish the best for it.
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