Murthy Wants Infy to Make Probe Reports Public
Bengaluru: Infosys founder NR Narayana Murthy has asked the company to make public the reports on the internal investigations it has conducted over the past year relating to acquisitions made by India’s second-largest software services company as well as the payout to a former executive, media reports quoting sources said. In June, Infosys released the findings of an internal investigation — triggered by claims made in two anonymous letters sent to the company in February that alleged wrongdoing in some of its acquisitions, improper contracting and CEO compensation and ex- penditures—which was conducted by global investigations firm Gibson Dunn. The findings exonerated the company of any wrongdoing.
Murthy, in an email sent to the board of the $10-billion company, has demanded further disclosures, television channel ET Now reported on Thursday.
“It was a pretty detailed mail, where he sought details on the scope of the report and clear disclosure that there was no financial benefit or ties between investors of Panaya and executives at Infosys who had managed the acquisition then,” ET Now said quoting sources. In 2015, Infosys acquired Israeli software firm Panaya for $200 million. ET was unable to independently ascertain when this email was sent to the board of Infosys. “Murthy has also sought details of the mail trail of former chief compliance officer David Kennedy
where he had written about the severance payout made to former CFO Rajiv Bansal,” ET Now reported.
Bansal quit the company in 2015 and was due to be paid a severance amount of over .₹ 17 crore. The payments were stopped in 2016. In response to queries from ET, a representative for Infosys said it would not release the entire report. In an exclusive interview to ET in February, Murthy had castigated the company’s governance and had sought clarity on the payments to Bansal. The Gibson Dunn investigation is the third such the company has conducted to address questions that have been raised. Gibson Dunn said no limitations or restrictions were placed on its access to information, and that the company and its directors and employees cooperated fully.
Infosys has been battling its founders on matters related to governance for over a year. Its board appointed Ravi Venkatesan as co-chairman and created committee of directors to help the management with strategy and execution.