Infosys places whistleblower complaints on Panaya acquisition before audit committee

By: | Published: February 22, 2017 1:39 PM

Infosys on Wednesday said that it has placed the recent anonymous whistleblower report alleging gross irregularities in its acquisition of Israeli company Panaya before the audit committee.

Yesterday, Infosys strongly denied that any member of the Infosys management team was involved in prior investments in Panaya.

Infosys on Wednesday said that it has placed the recent anonymous whistleblower report alleging gross irregularities in its acquisition of Israeli company Panaya before the audit committee and the committee will start the probe on the allegations made by the whistleblower. Yesterday,  Infosys strongly denied that any member of the Infosys management team was involved in prior investments in Panaya.

The acquisition of Israel-based company Panaya for $200 million by Infosys in February 2015 has generated considerable controversy with the anonymous letter claiming that due procedures were not followed and the then CFO Rajiv Bansal was against the deal. “Insinuations that anyone from the management team at Infosys benefitted from this acquisition are misleading and slanderous,” a statement from Infosys said on Monday. However, the statement of Infosys has not provided any clarification on the alleged disapproval by Bansal to the Panaya deal as stated in the whistleblower letter.

Meanwhile, CEO Vishal Sikka wrote a letter to the employees on Monday in which he said, “These speculations and fabrications are clearly designed to tarnish our reputation, and they specifically target our employees, including myself, to the point of harassment. They create a false alternate-reality out of events and dates, with embellishments that are calculated to mislead and sensationalize.”

The anonymous letter alleged that Bansal probably knew many of the shortcomings in the Panaya acquisition and severance package was a means to silence the matter. Infosys founder N R Narayana Murthy even went to the extent to terming it as some kind of “hush money”. However, Sikka remained combative and said, “We cannot let these stand unchallenged, and we will take every step and pursue every avenue to strongly defend the company in the face of these unfair and unwarranted attacks.”

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The anonymous letter also attacked the Board of Infosys for blindly approving the Panaya deal. “There are serious issues on governance and nepotism in this deal which the Board of Infosys had never applied their mind and looked into,” the letter said.

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