Employees from global technology consultancy, Infosys are alleging that the company's CEO Salil Parekh (pictured) has demonstrated "unethical practices" in recent quarters. The whistleblowers are calling for auditors to look into the matter, claiming that they have emails and voice recording as evidence, in a letter to the board signed by "ethical employees" obtained by Economic Times and seen by Marketing.
Marketing has reached out to Infosys for a statement. The company's clients include Intel and Verizon Communications.
The employees claim that critical information is hidden from auditors and board to improve profits. This includes "deal proposals, margins, undisclosed upfront commitments made and revenue recognition". The finance team was told not to fully recognise costs such as visa and reversals, which are against accounting practice, said the letter. Meanwhile, travel expenses for the CEO's "weekly personal trips" are also allegedly borne by the company.
The employees said they were also instructed by Parekh not to share large deal information with auditors, adding that there have been “irregularities” in large deal approvals that bypassed reviews and approvals. The sales teams have also been instructed not to send emails for approval. According to the letter, staff members are encouraged to share only "good and incomplete information" with investors and analysts. Those who disagreed are "sidelined".
In a separate letter dated 3 October to the office of whistleblower protection program in the US, the employees detailed a list of emails and voice recordings that support their claims. The files are said to be enclosed. However, they have not been sent to Infosys to protect their identity.
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This incident comes as Infosys deputy CFO Jayesh Sanghrajka resigned earlier this month. The company also received a whistleblower complaint during the tenure of former CEO Vishal Sikka, who left in 2017 after a corporate governance dispute with Infosys founder NR Narayana Murthy, according to Economic Times.