Business Today
Loading...

Infosys says no prima facie evidence to support whistleblower allegations

Infosys says the company is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints

twitter-logo BusinessToday.In   New Delhi     Last Updated: November 6, 2019  | 11:46 IST
Infosys says no prima facie evidence to support whistleblower allegations
Infosys on October 22 launched a thorough investigation into the whistleblower allegations.

In its first official response after the start of a probe into the allegations of 'unethical practices' against Chief Executive Salil Parekh and Chief Financial Officer Nilanjan Roy, Infosys said on Monday it had received no evidence to support the allegations.

"There is no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations," Infosys said in a letter to the National Stock Exchange (NSE) dated November 2.

Also read: Infosys Chairman Nilekani recuses CEO Parekh, CFO Roy from investigation of allegations

A day after scathing allegations of "unethical practices", Infosys on October 22 launched a thorough investigation into the allegations, saying both the complaints made by the anonymous group called 'Ethical Employees' had been placed before the Infosys audit committee and its non-executive members.

"The anonymous complaints were placed before the Audit Committee on October 10, 2019, and the non-executive members of the Board on  October  11,  2019, in accordance with the whistleblower practice of the Company," it added.

The company said the anonymous complaints did not fall within the purview of "deemed material events" under the LODR Regulations. "...given the circumstances at this stage, where there is a complete absence of prima facie evidence and the anonymous complaints are still under investigation, the company is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints," said the company.

In a complaint letter to the board of Infosys and the US Securities and Exchange Commission (SEC), the anonymous employees' group had claimed they were asked not to "fully recognise costs like visa costs" in last quarter to show more profit. And when the auditor pointed it out, the issue was postponed by the company, they alleged.

Edited by Manoj Sharma

Also read: Infosys Chairman Nilekani recuses CEO Parekh, CFO Roy from investigation of allegations

Also read: Infosys pays for CEO Salil Parekh's weekly personal trips, alleges whistleblower letter

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close