Infosys cracks down on BPO arm for faking bills
An anonymous mail has surfaced in Infosys, claiming to be from an employee who worked in the finance department of the company, questioning the internal controls of the company.business Updated: Nov 21, 2014 02:42 IST
As Infosys cracked down on a number of employees in connection with the financial irregularity that led to the termination of the CFO and resignation of the CEO of its BPO arm, an anonymous mail has surfaced, claiming to be from an employee who worked in the finance department of Infosys, questioning the internal controls of the company.
Sources said that six more employees have been sacked, but the company refused to confirm this.
The irregularity — overbilling Apple Inc over 18 months — was done by a project manager under pressure for growth and revenues from top management, the mail, which was sent to top executives and board members of Infosys, has alleged.
The letter alleged that the manager had faked bills to provide rewards to the employees, and that the issue had been brought up in the company’s disclosure committee meetings several times.
As the internal controls are certified by the group CEO and CFO in filings to the US Security Exchange Commission (Infosys is Nasdaq-listed), they are primarily responsible, it said.
A former manager said the whole incident was a result of internal rivalry. “In this case a senior employee was made responsible for the act of a junior employee. Apple has not lodged any formal complaint and the company says the amount involved is miniscule. Clearly, the CEO and CFO of Infosys BPO arm are victims,” he claimed.
When asked about the mail, an Infosys spokesperson said the company would not make any disclosures at this juncture.
Responding to a query on whether more employees have been sacked, she said “The financial irregularities are not material in nature and the company has already made required disclosures. The company has taken disciplinary action against the employees involved. We will not be able to comment on client-specific matters or on the investigation as they are confidential in nature.”
First Published: Nov 20, 2014 22:09 IST