NASHVILLE -- The Indian computer company that handles software and computer support for Nissan North America Inc. is in turmoil over allegations of large-scale accounting fraud.
Nissan North America says the scandal at Satyam Computer Services Ltd. has not affected the automakers operations so far. About 100 Satyam employees work at Nissans U.S. manufacturing headquarters in Smyrna, Tenn.
Satyam admitted that its financial data have been misstated for years in what Indian authorities are calling a $1 billion fraud.
Katherine Zachary, a spokeswoman for Nissan North America in Franklin, Tenn., said the scandal has not disrupted the U.S. operations. She read from a statement saying: Nissan is aware of the situation and taking appropriate steps to ensure the continuity of Satyam-supported systems and applications. Well continue to closely monitor this matter.
Nissan signed a five-year contract with Satyam in March 2006 to manage what it called at the time all of Nissans mission-critical business applications in North America.
The misstatement of financial results in India does not immediately affect business operations, but the news has thrown Satyam into chaos.
Senior executives have been arrested, and the Indian government has interceded to appoint new board members. The government appointees tried to quell market speculation that the services company would not survive.
Reuters quoted a new board member saying, Wed like to assure Satyams customers that our immediate priority is to ensure sustainability of service with minimal disruptions.