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Nandan Nilekani, the Co-founder and Non-executive Chairman of Infosys’s Board said that he and the Board were “fully persuaded” that the results of independent investigations into allegations of wrongdoing at the company were correct.
“I believe that all stakeholders acted out of a strong passion for Infosys, wanting what they believed to be the best for the company and to see it succeed. In light of my review of these matters, I am fully persuaded, as is the entire Board, that the conclusions of the independent investigations are correct. This Board and I are committed to the highest standards of professionalism and will deal promptly and decisively with any governance issues should they ever come up in the future,” said Nilekani in a statement on the second quarter results of the company.
Nilekani took over as the Board Chairman in August after the exit of the first non-co-founder CEO Vishal Sikka, and has since said that he will focus on the CEO search, board reconstitution, and business stabilisation.
The country’s second largest software exporter has been in the eye of a storm over allegations made by anonymous whistleblowers. Some of these allegations included issues of improprieties in connection with the company’s acquisitions of Panaya, and Skava Systems Private in 2015, and alleged irregularities in the high severance package of former CFO Rajiv Bansal.
“Among other things, the review reaffirmed the conclusion of the independent investigation that there was no merit to the allegations of wrongdoing with respect to the acquisition of Panaya,” the company said in a statement.
Founder NR Narayana Murthy has on several occasions demanded that the investigations into the Panaya deal be made public.
“After careful re-consideration, the company has concluded that publishing additional details of the investigation would inhibit the company's ability to conduct effective investigations into any matter in the future. Confidentiality is critical to ensuring the candor and cooperation of whistleblowers and other participants in any investigative process,” Infosys said.
Murthy had earlier taken issue with a company statement about an independent investigation which absolved the management of allegations regarding benefiting directly from the acquisition of Israeli software firm Panaya.
Nilekani added, “As the company moves forward to a more stable environment I am grateful to all the well-wishers of the company, including Mr. Narayana Murthy, for their deeply held passion for Infosys... I would also like to acknowledge the leadership role Mr. Narayana Murthy has played in building this iconic institution and in corporate governance matters. Going forward, it is our endeavour to build a trusting relationship with Mr. Murthy.”
Murthy had also raised questions about the high severance package of former Chief Financial Officer Rajiv Bansal.
In the statement, Infosys clarified on these issues. “In certain respects, as the Board has previously noted, the severance payments to the company’s former CFO could have been better handled, and the company has identified opportunities for improvements in processes and practices, which have been implemented,” it said.
The statement further added that since December 2016, Infosys has adopted a practice of disclosing the severance payment to key managerial personnel at the time of their departure.
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