Murthy Wants Infy to Make Probe Re­ports Public

The Economic Times - - Disruption: Startups & Tech - Our Bu­reau

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.