Sanjay Kumar quits Computer Associates

Computer Associates International announced on Friday that chief software architect Sanjay Kumar has decided to leave the company. Kumar, the release said, will cease all involvement with the company's business with immediate effect.

While accepting Kumar's resignation, CA chairman Lewis Ranieri said, "The board wishes Sanjay and his family well. The board is committed to reaching a settlement of the government's investigation into the company's past accounting practices as quickly as possible. 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."

Kumar stepped down as CA's chairman and chief executive officer in April and was replaced by interim chief executive officer Ken Cron.

On his decision to quit the company, Kumar said, "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. 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.

"While I am grateful for the support and encouragement I have received from the customers, employees and shareholders, I believe my decision to leave at this time is the right one. It hopefully will permit CA to move forward," Kumar added.

Computer Associates, a $3 billion maker of software for corporate computing systems, is being investigated by the United States Attorney's Office and the Securities and Exchange Commission for misrepresenting the timing of contracts in order to meet Wall Street's quarterly expectations.

The biggest fear for the company's board of directors was that the entire company, not just some of its employees and executives, could be criminally indicted as US federal prosecutors are examining various issues to determine whether to charge the company.

A felony conviction for the corporation could have serious consequences -- such a conviction effectively killed the accounting firm Arthur Andersen LLP, and could result in ineligibility to participate in government contracts, a major loss for any technology vendor. If CA is indicted, it could be banned from government work even before the case is tried, The Wall Street Journal had said.

The company said that it cannot predict what impact, if any, the investigation may have on its results of operations or financial condition.