Published February 3, 2009

IJM denies improper land dealings with Satyam

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(KUALA LUMPUR) IJM Corp Bhd yesterday refuted allegations of improper land dealings with scandal-hit Satyam Computer Services Group, The StarBiz reported.

It denied that the company, its CEO Krishnan Tan or director in charge of operations in India, Ng Chin Meng, had land dealings with Satyam or Maytas Infra Ltd in their personal capacity or on behalf of the company.

'The company will extend its full cooperation to the Indian tax authorities, if needed,' said IJM Corp in a statement to Bursa Malaysia.

The company's denial was a response to an article carried by India's The Economic Times, which said that Mr Ng was on a list of 30 individuals who were being investigated by Indian tax authorities in relation to the Satyam fraud case.

IJM's unit in india, IJM (India) Infrastructure Ltd, issued a clarification on The Economic Times article that appeared on Jan 28, saying that IJM's business involvement in India began in 1997/98 with co-investments in Gautami Power and two road projects. Those projects were done in a joint venture with Satyam Constructions Ltd, now called Maytas Infra.

It said that the road projects were completed in 2001 and Maytas was a sub-contractor for another road project in Madhya Pradesh in 2003.

The clarification, which was provided by the company secretary of IJM India, said that the company was originally incorporated in April 1998 by promoters related to Maytas and Satyam.

But the promoters' stake in IJM India was gradually reduced from an original 30 per cent to 0.85 per cent in March 2008 and from 2003, the promoters linked to Maytas and Satyam did not have any board representation in IJM India.

Maytas is currently a sub-contractor for IJM India in two road projects. IJM India said that those jobs were at advanced stage and conducted on an arm's length basis.