Whistleblower complaints are investigated independently: Nandan Nilekani
One Board member received two anonymous complaints on September 30, 2019 titled “Disturbing unethical practices” & “Whistleblower Complaint". Nilekani said the the CEO Salil Parekh and CFO Nilanjan Roy have been recused from this matter.
ET had reported on Monday that a group calling itself “ethical employees” had filed a whistleblower statement with the Infosys board and the US Securities & Exchange Commission, alleging that the company’s top managers were bending rules with regard to accounting of revenue from large deals and how profitable these projects would be.
One Board member received two anonymous complaints on September 30, 2019 one dated September 20, 2019 titled “Disturbing unethical practices” and the second undated with the title, “Whistleblower Complaint", said Infosys.
Based on its whistleblower practice, Infosys said it has placed both complaints before the Audit
Committee on October 10, 2019 and before the non-executive members of the Board on October 11, 2019, said the company.
Additionally, on October 16, the company was made aware of a letter dated October 3, 2019 which was purportedly written to the Office of Whistleblower protection program, Washington D.C. This letter refers to the September 20, 2019 complaint, and to emails and voice recordings in support of the allegations.
Nilekani said the the CEO Salil Parekh and CFO Nilanjan Roy have been recused from this matter to ensure independence.
"Although we have not been provided any of the emails or voice recordings, we will ensure that the generalized allegations are investigated to the fullest extent."
The Audit Committee has retained law firm of Shardul Amarchand Mangaldas & Co. to conduct an independent investigation and the Board, in consultation with the Audit Committee, will take such steps as may be appropriate based on the outcome of the investigation, said Nilekani.
The Infosys chairman said the company's board started consultation with independent internal auditor EY and updated the statutory auditor Deloitte about the letter and allegations.