INTERIM REPORT ON GOVERNANCE LAPSES IN 2 WEEKS: BHARATPE CEO

BharatPe chief executive Suhail Sameer in a communication to employees has stated that there were a couple of “serious allegations” of governance lapses, which warranted a fine-tooth-comb audit of governance practices by outside experts.

He requested them to keep their trust in the leadership amid co-founder Ashneer Grover’s tussle with the company’s board and said the interim report of the auditors should come in the next couple of weeks. Sameer did not elaborate on the allegations.

Grover, who was sent on a three-month leave following allegations of using abusive language against Kotak Mahindra Bank staff and fraudulent practices, has denied all allegations.

BharatPe CEO in the letter to employees, a copy of which is with PTI, said a governance review is being carried out by well-known and reputed external firms (SAM, Alvarez and Marsal (A&M) and PwC).

“Based on some internal complaints, we decided to do a full audit of our governance processes,” he said. “While many of the findings of the review are pretty standard for a fast-growth company of our size, there are a couple of more serious allegations, which the review is still substantiating.” Stating that there is nothing that can’t be corrected going forward, he said none of these has any bearing on the medium to the long-term health of the business.

“We expect the review partners (consultants) to share an interim report with the Board in a couple of weeks,” he said.

“Meanwhile, I would just request all of you to keep your trust on the Board of BharatPe, which comprises some of the best investors in the world and veterans of the Indian Banking Industry. Whatever the Board will decide, will be beyond doubt, in the best interests of our employees, our merchants and our consumers.”