Infosys said it had not found any evidence of conflicts of interest or kickbacks related to the Panaya Photograph: (DNA)
Infosys had hired Khaitan & Company to look into a controversy surrounding the Panaya acquisition
Infosys today refused a request from its founder N R Narayana Murthy to disclose a report by an external consultant on the alleged wrongdoing in Panaya acquisition.
Infosys had hired Khaitan & Company to look into a controversy surrounding the Panaya acquisition after a whistleblower in an email had alleged that the company's management had wrongly acquired the Israeli automation technology company. In February last year, Infosys had announced it was buying Panaya for $200 million (Rs 1,250 crore) in cash.
"The company does not plan to make the report public," Infosys said in a statement.
In its website the company gave a summary of the report, saying, it had not found any "evidence that the CEO received excessive variable compensation or incurred unreasonable expenses for security, travel and the Palo Alto office."
"We found no evidence of inappropriate contracting and no evidence that the Mergers and Acquisitions team failed to obtain appropriate approvals."
"We found no evidence supporting the whistleblower’s allegations regarding the acquisitions – there were no conflicts of interest or kickbacks, required approvals for the acquisitions were obtained, thorough due diligence was conducted, the valuations of the target companies done by an outside financial advisor were reasonable, and the purchase prices were within the range of values determined by that advisor," the statement added.
Summary of Infosys statement - Click here
Murthy and CEO Vishal Sikka have clashed in the media on several occasions in the past year over pay and severance package of the company. Murthy had questioned Infosys management's decision after the media reported former finance chief Rajiv Bansal was paid $2.6 million as part of his severance package.