Two partners at Price Waterhouse in India have been
arrested in connection with the$1bn accounting fraud at Indian IT supplier
Satyam.
The two workers, from the PWC division, were arrested by Andhra
Pradesh state police over the weekend.
Price Waterhouse in India was the firm responsible for auditing
the accounts, which former chairman B Ramalinga Raju admitted had
been falsified for years.
A statement from Price Waterhouse India said, "We greatly regret
that two partners have been detained today for further questioning.
We do not know the basis for them being detained."
The company said it has fully cooperated with the Indian
authorities since the fraud scandal came to light.
"We share the regulators' concern in understanding the full
extent of the fraud and how it was accomplished. Like everyone
else, we were shocked by the massive fraud at Satyam and by the
steps undertaken to conceal it. PW-India will continue to
co-operate fully with the authorities."
Raju admitted that he had
cooked the company's books for several years. The company's
survival has been put into question as customers consider their
options and the company's cash-flow runs low.