Kumar quits CA

By Iain Scott, ITWeb group consulting editor

Johannesburg, 07 Jun 2004

Sanjay Kumar, former Computer Associates (CA) chairman and CEO, has quit the chief software architect post created for him in April.

Kumar took up the post of chief software architect after stepping down from the helm of CA amid a more than two-year-old Securities and Exchange Commission and US Attorney`s Office probe into allegations of accounting fraud and obstruction of justice.

CA said at the time that the change to Kumar`s role was not based on the conclusion that he had engaged in wrongdoing, although the accounting practices under question occurred during his tenure.

The group said at the weekend that Kumar would now cease all involvement with CA`s business with immediate effect.

"It has become increasingly clear to me in the past few days that my continued role at CA is not helping the company`s efforts to move forward," says Kumar.

"I understood that my stepping down as chairman and CEO represented a break with the past, but I have reluctantly concluded that as long as I hold any position, focus on past issues and my current role will continue."

Several CA staff members have been fired or forced to quit as a result of the probe and four executives, including former chief financial officer Ira Zar, have pleaded guilty to criminal charges.

"The board is committed to reaching a settlement of the government`s investigation into the company`s past accounting practices as quickly as possible," says chairman Lewis Ranieri. "We are working hard to take the remedial steps necessary to put this entire matter behind CA. Sanjay`s decision to leave CA was made in that spirit."

Born in Sri Lanka in 1962, Kumar joined CA in 1987 when the group acquired UCCEL, where he was software development director. He replaced Charles Wang as CA chairman in 1994.