A group of whistleblowers at Infosys, identifying themselves as “Ethical Employees” in their letter, have alleged that Infosys CEO Salil Parekh has been fudging the company’s financials and inflating profits in recent quarters. According to the whistle blowers, as stated in their letter, CFO Nilanjan Roy has been compliant and is also involved.
In their letter sent to the board of Infosys and the US Securities and Exchange Commission (SEC), they have also referred to the voice recordings, and emails to substantiate their allegations. Their letter claims that that CEO Salil Parekh has been bypassing reviews and approvals for large deals. It also states that in case of large contracts like Verizon, Intel and ABN Amro acquisition, the revenue recognition has not been as per accounting standards.
Salil Parekh, an ex Capgemini executive, had taken over as the CEO of the company in February 2018, after the unceremonious exit of Vishal Sikka over alleged corporate governance lapses. Nilanjan Roy, had joined the company as CFO in December 2018, after a 13 year stint at Bharti Airtel.
In response to the allegations, the company has started investigations to ascertain facts related to the highlighted issues.
Infosys mentioned in a media statement that “The whistleblower complaint has been placed before the Audit Committee as per the Company’s practice and will be dealt with in accordance with the Company’s whistleblowers policy.”
Infosys, announced earlier this week (4th Nov 2019) that the company investigated the issue raised by whistleblowers and found no evidence to support the allegations.
“Infosys strongly condemns the mischievous insinuations made by anonymous sources against the cofounders and former colleagues, suggesting their involvement in the recent whistleblower allegations”.
– Statement by Infosys
Updated: 6th November 2019
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