Comptroller and Auditor General of India has berated Satyam [Get Quote] for its tardy implementation of a WHO project, but the UN body has for now decided to continue with the Indian IT firm despite missed deadlines and cost overruns.

Acting as external auditor to World Health Organisation, CAG flagged a number of risks associated with the execution of the Global Management System project, where Satyam happens to be the key contractor.

"Until now, Satyam has carried out technical activities for 21,131 (man) days and thereby may claim a total of $28.6 million, exceeding the contracted amount by $1.4 million," CAG Vinod Rai said in the audit report submitted to WHO's Health Assembly way back in May 2008.

The $55.5 million project was initially targeted to go live in September 2007, but was given its first extension until December 2007, then a second until March 2008 and a third until June 2008, the auditor said.

However, even the extended deadline has been missed. Satyam was contracted as the main system integrator of the project.

The contract of $27.2 million to Satyam included performance of services for 15,000 man days.

The Programme, Budget and Administration Committee of the Executive Board of WHO has recommended persevering with the implementation of the GSM project.