Opinion | Infosys’ troubles
Just when stability seemed to have returned, Infosys has been hit by a fresh controversy. A few of its employees have accused CEO Salil Parekh and CFO Nilanjan Roy of “unethical accounting practices”. An anonymous letter sent to the board has alleged suppression of cost information in recent quarters. The US Securities and Exchange Commission has also been informed. The employees claim they were asked not to fully recognize costs such as those incurred on visas. All this, to show higher profits and keep Infosys’s stock price buoyant. They also contend they were pressed not to record reversals of contractual payments to the company worth $50 million.
It’s good that Infosys has begun a probe. Its best interest lies in a speedy investigation by a credible team. Shareholders had expected that all would be well after the bruising battle over its leadership was resolved in 2017. For decades, Infosys was regarded as not just a bellwether in the IT space, but also as an upholder of professional ethics and good governance. Widely admired companies usually have the most to lose by the slightest whiff of a scandal. The sooner we get to the bottom of this one, the better.