India's Infosys says investigation finds no evidence of wrongdoing

Reuters News
Posted: Jun 23, 2017 9:10 AM

MUMBAI (Reuters) - India's Infosys <INFY.NS> said on Friday an investigation it commissioned had found no evidence of wrongdoing in accusations by an anonymous whistleblower, releasing the findings a day before it holds its annual shareholders meeting.

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.

The accusations included improprieties in the acquisitions of Panaya Inc, a New Jersey-based provider of automation technology, and Skava, a Silicon Valley e-commerce startup, as well as allegations of inappropriate compensation paid to Infosys Chief Executive Vishal Sikka.

The whistleblower also accused Sikka of requesting that improper deals be made with customers, while saying Infosys' mergers and acquisitions team acted without proper approvals.

However, the investigation by Gibson Dunn and Control Risks found "no evidence whatsoever to support" wrongdoing by the company, its directors or its employees, according to a letter sent by the investigators to Infosys, which the company published on Friday. The letter said the "allegations were rebutted by substantial and credible evidence."

The company has also been mired in a separate row with its founders, who have accused the management of lapses in corporate governance.

(Reporting by Promit Mukherjee; editing by Susan Thomas)