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  Business   Companies  13 Nov 2019  Infosys faces another whistleblower complaint, CEO accused of misdeeds

Infosys faces another whistleblower complaint, CEO accused of misdeeds

THE ASIAN AGE. | ASHWIN J PUNNEN
Published : Nov 13, 2019, 3:27 am IST
Updated : Nov 13, 2019, 3:30 am IST

When the first letter became public on 22 October, Infosys stock plunged about 16 per cent and since then, the stock has recovered 9.5 per cent.

Infosys is said to have hired PwC to investigate two whistle-blower complaints alleging financial malfeasance against chief executive Salil Parekh and finance chief Nilanjan Roy.
 Infosys is said to have hired PwC to investigate two whistle-blower complaints alleging financial malfeasance against chief executive Salil Parekh and finance chief Nilanjan Roy.

Mumbai: IT major Infosys Technologies is hit by yet another  whistleblower complaint as fresh accusations have come up against the Bengaluru-based company’s Chief Executive Officer Salil Parekh of committing misdeeds.

Claiming to be an employee in the company's finance department, the whistleblower urged the Chairman and the board of directors to act against CEO.

 

“Though it is a year and 8 months since Mr Parekh joined the company, he operates from Mumbai in violation of the condition that the CEO has to be based in Bengaluru and not Mumbai. What is stopping the board to insist on his movement to Bengaluru,” said the whistleblower in an unsigned and undated letter to Infosys Chairman Nandan Nilekani and Independent Directors.

The letter said as Mr Parekh did not relocate to Bengaluru even after he was given two months to do and was visiting the tech hub twice a month, the techie said the company had incurred Rs 22 lakh towards his airfare and local transportation.

“Four business class tickets per month plus home to airport drop in Mumbai, airport pick-up in Bengaluru and drop on the return journey,” alleged the whistleblower.

 

This is the second whistleblower's complaint after a few anonymous employees accused Mr Parekh and Chief Financial Officer Nilanjan Roy of unethical practices in a two-page letter to the board on September 20.

Referring to the CEO's record of visits to Bengaluru, the complaint said Mr Parekh leaves Mumbai leisurely at 10 a.m. and reaches Bengaluru by 11.30 a.m. and office by 1.30 p.m.

“Mr Parekh spends an afternoon in office and next forenoon he is off to Mumbai by 2 p.m. This kind of involvement of the CEO in the company is the worst that we have seen till date. This, unfortunately, is not setting the right example for other employees to follow. Incidentally, it has become the norm. Many people have started working from home and nobody to ask them any questions. Even if tough managers want to ask questions, how would they as the CEO himself is working from home,” the letter said.

 

When the first letter became public on 22 October, Infosys stock plunged about 16 per cent and since then, the stock has recovered 9.5 per cent.

Infosys is said to have hired PwC to investigate two whistle-blower complaints alleging financial malfeasance against chief executive Salil Parekh and finance chief Nilanjan Roy.

Alleging that Parekh has made several personal investments into small companies in Mumbai and hence he is staying in Mumbai to have better oversight on his investments, the complaint states that this is a gross violation of value system and this needs to be investigated and suitable action for termination should be initiated.

 

The whistleblower said he has heard that Parekh keeps visiting the USA every month in order to retain his Green Card.

Tags: infosys, salil parekh