Amit Mitra, Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI) said that the systematic failure might not necessarily spread to other companies, but the incident should provoke the corporate world to have fresh thinking on corporate governance.

The head of Satyam Computer Services resigned on Wednesday, saying the firm's profits had been inflated, sending the stock down more than 80 per cent and roiling investor confidence.

Satyam's fraud may batter World Bank's image: Report

The revelation of Satyam Computer Services Ltd of about a Rs 7,800-crore fraud may dent the image of the World Bank as it kept quiet until last month about its suspicion of the IT firm's corporate malpractices, a leading financial daily said on Thursday.

In 2006, the World Bank told the US Justice Department it suspected Satyam may have been involved in bribery, the ‘Wall Street Journal’ reported, citing bank officials.

However, in late 2007, the bank completed an internal investigation and found that Satyam had acted improperly.

Under World Bank rules, the company then had the chance to argue why it shouldn't be banned.

"The bank should have been more responsible about

reporting publicly on what they knew to be misconduct at highest levels of Satyam," the paper quoted Bea Edwards, International Reform Director at the Government Accountability Project, Washington DC, watchdog group, as saying.

In February 2008, the World Bank temporarily suspended Satyam from bidding on new contracts, and then in September formally made the firm ineligible to bid on future contracts, the ‘Journal’ added.

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