Clean chit for Infosys in 2 deals

Xavier Trudeau
Juin 24, 2017

"Gibson Dunn and Control Risks have now completed their detailed and extensive independent investigation and they did not find any evidence whatsoever of wrongdoing", Infosys said in a regulatory filing.

"We found no evidence whatsoever to support any of the new allegations in the complaints regarding wrongdoing by the company or its directors and employees, and those allegations were rebutted by substantial and credible evidence", Gibson said in a statement.

"The company had also fully cooperated with all requests for information from the SEBI regarding the anonymous complaints", according to the Infosys filing. "The anonymous complaints were placed before the Audit Committee".

Infosys Ltd commissioned the law firm Gibson Dunn & Crutcher LLP and risk consultants Control Risks to investigate allegations the whistleblower made in February against India's second-biggest software services exporter.

One whistleblower had alleged that the software major's United States dollars 200 million acquisition of Israeli firm Panaya in 2015 was overvalued and the deal had benefitted some employees.

In February this year, the Securities and Exchange Board of India (SEBI) had received two separate complaints from whistleblowers alleging irregularities in Infosys's Panaya deal.

Khaitan & Company was appointed to provide legal counsel on Indian law matters associated with the complaint, independent investigation and related matters. The whistleblower had alleged that the $200 million paid by Infosys was 25 per cent more than what the firm was valued before the acquisition in a Series E funding round.

But sources told TOI that Infosys co-founder N R Narayana Murthy returned to Bengaluru, from London, on Friday, much ahead of his previously scheduled return in July.It is not clear whether he did this to attend the AGM, or to meet with board members. The auditor said there was no proof that the merger and acquisitions team failed to obtain appropriate approvals. "We also concluded that Cyril Amarchand Mangaldas (CAM) in 2015 and 2016 previous investigations were thorough and that their findings and conclusions were reasonable and credible based on the evidence", the company said. The firm said the investigation involved interviews of over 50 witnesses in India, the U.S. and elsewhere, besides the review of company policies, board minutes, public filings and internal documents.

"We found no evidence of inappropriate contracting or the CEO (Vishal Sikka) receiving excessive variable compensation or incurring unreasonable expenses for his security, travel and the Palo Alto office", said the probe firms.

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