ADVERTISEMENT

Infosys Analyst Meet: Nandan Nilekani Says Will Ensure All Aspects Of Whistleblower Allegations Are Probed

Infosys’ goal is to bring the whistleblower investigation to appropriate conclusion; cannot give a timeline, said Nilekani.

Nandan Nilekani, co-founder and chairman of Infosys Ltd., listens during a Bloomberg Television interview on the sidelines of the Bloomberg New Economy Forum in Singapore. (Photographer: Wei Leng Tay/Bloomberg)
Nandan Nilekani, co-founder and chairman of Infosys Ltd., listens during a Bloomberg Television interview on the sidelines of the Bloomberg New Economy Forum in Singapore. (Photographer: Wei Leng Tay/Bloomberg)

Amid a string of whistleblower complaints over two years, Infosys Ltd.’s Chairman Nandan Nilekani said the company is taking all these allegations seriously and all aspects of the charges will be probed.

Infosys acted responsibly in responding to complaints, Nilekani told analysts and investors in a webcast, adding that the company’s response to allegations has been in accordance with the U.S. and Indian laws.

The Infosys co-founder also defended the firm’s internal processes.

I think Infosys has very strong processes, I think even God cannot change the numbers of this company.
Nandan Nilekani, Chairman, Infosys 

Here are the other highlights from Infosys’ analyst meet:

  • Our goal is to bring this investigation to appropriate conclusion in the best possible time; cannot give a timeline.
  • Any information should be credible and concrete to be disclosed to investors.
  • Whistleblower policy has been in existence for 15 years; will continue as is.
  • The company has always followed a strong moral code.
  • Infosys' response to the recent whistleblower allegations adhered to the company's policies and practices.
  • The audit committee has appointed an external law firm to look into the allegations.
  • A letter submitted to the SEC had some attachments, but the board has not received any attachments.
  • You have to leave it to the board members who have the highest integrity to decide if the report is to be made public or not.

In a letter dated Sept. 30, a group of “Ethical Employees” accused Infosys Chief Executive Officer Salil Parekh and Chief Financial Officer Nilanjan Roy of unethical practices, including hiding visa costs for employees. Following which, the firm’s audit committee appointed an external law firm to conduct an independent investigation into the allegations.

Two weeks later the company said it had not disclosed the whistleblower complaint because its investigation had prima facie received no “supporting evidence”. In the absence of this, Infosys “is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints”, it had said.

The company today condemned the “mischievous insinuations” leveled against its co-founders and former employees by “anonymous sources”.

‘Customers Extremely Supportive’

Nilekani also sought to assure investors that the whistleblower attacks have had little impact on the company’s ability to win contracts.

“Our customers have faith in Infosys and the deals continue to be good as ever,” Nilekani said. The management is completely focused on running day-to-day operations and is “not missing a beat”, he added.

Opinion
Infosys Getting Large Deals Despite Whistle-Blower ‘Distraction’

Second Whistleblower Attack In Two Years

This is not the first time Infosys is dealing with whistleblower complaints. In 2017, then CEO Vishal Sikka faced an allegation of making profits worth $200 million from the ‘Panaya’ acquisition deal. That led to a boardroom tussle between the management and co-founders, and eventually forced Sikka to resign.

Follow Infosys’ Analysts Call Here: