Info-tech

Allegations of unethical practices: Infosys CEO, CFO recused from investigations

Our Bureau Bengaluru | Updated on October 28, 2019 Published on October 22, 2019

Infosys, which is facing allegations of unethical practices from a whistleblower group, has recused the CEO and the CFO from the investigations conducted by the auditors.

In a statement to the BSE, the Infosys Chairman, Nandan Nilekani, said post the board meeting of October 11, 2019, the audit committee had retained the law firm Mangaldas & Co to conduct an independent investigation. He said one board member had received two anonymous complaints on September 30, 2019, one dated September 20, 2019, titled ‘Disturbing unethical practices’ and one undated, titled ‘Whistleblower Complaint’. “Pursuant to our whistleblower practice, we have placed both complaints before the Audit Committee on October 10, 2019 and before the non-executive members of the board on October 11, 2019.”

 

These complaints are being dealt with in an objective manner. Because the investigation is ongoing, there will be no further comment, so that investigations may be conducted in a thorough and objective manner, Nilekani said.

He said Infosys will provide a summary of the investigation results at the appropriate time. The board is committed to uphold the highest standard of corporate governance and protect the interests of all stakeholders. The undated whistleblower complaint largely deals with allegations relating to the CEO’s international travel to the US and Mumbai. Additionally, on October 16, 2019, the company was made aware of a letter dated October 3, 2019, which was purportedly written to the Office of the Whistleblower Protection Program, Washington D.C.

Read: Whistleblower’s charges: testing time ahead for Infosys

"This letter refers to the September 20, 2019 complaint, and to emails and voice recordings in support of the allegations. Although we have not been provided any of the emails or voice recordings, we will ensure that the generalised allegations are investigated to the fullest extent. Additionally, to ensure independence in these investigations, the CEO and CFO have been recused from this matter," the statement said.

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Post the board meeting of October 11, 2019, the Audit Committee began consultations with the independent internal auditors (Ernst &Young) on the terms of reference for their prima facie investigation. The Audit Committee has now retained the law firm of Shardul Amarchand Mangaldas & Co (October 21, 2019) to conduct an independent investigation.

The board, in consultation with the audit committee, would take appropriate steps based on the outcome of the investigation. Our statutory auditors, Deloitte, India, have also been completely updated on this matter post the board meeting of October 11, 2019.

Shares tank

Infosys shares tanked 14.61 per cent to Rs 655.45 on the Bombay Stock Exchange in the early hours of trading on Tuesday following a whistleblower complaint about "unethical practices'' indulged by the CEO.

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Published on October 22, 2019
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