WB ban won't affect company finances: Megasoft

Software firm Megasoft, debarred by the World Bank from doing business with the international lender for four years, today said that there will be no financial impact on the company due to the punitive measure.

"Megasoft has had no business from (the) World Bank since 2004 and hence there is no financial impact on the company due to this announcement,"said GV Kumar, Managing Director and CEO, Megasoft.

Kumar further said, "The World Bank approached us in 2007 seeking details about Megasoft China Operations and we gave them all details.We had by then even shut down our China operations. They objected to (our) having a joint venture with an ex-employee of the World Bank and chose to debar us on (those grounds)."

The World Bank said it barred Megasoft from bidding for contracts for four years in December 2007 for "participating in a joint venture with Bank staff while also conducting business with the Bank."

The World Bank today said it has decided to debar Indian software firms Wipro and Megasoft from directly doing business with the bank group under its corporate procurement programme, taking the number of such vendors to three.

The Bank had earlier announced debarring Satyam Computer.

"This (was done) in the interest of fairness and transparency," the Bank said in a statement.

Now disclosure practices for companies that provide goods and services directly to the Bank are being aligned with the current policy governing procurement on Bank-financed projects in developing countries.

Shares of Megasoft were trading at Rs 14.60, down 7.89 per cent, at the BSE after the announcement made by the World Bank.