Infosys board gives clean chit to controversial Panaya deal

Infosys co-founder NR Narayana Murthy said he stands by all the questions he raised on what he said were falling corporate governance at the company.

Nandan Nilekani, the stand-in chairman of Infosys Ltd today gave his stamp of approval to the investigations conducted in the context of corruption allegations around the IT company, and suggested that the company and its founder Narayana Murthy will be able to develop a "trusting relationship" going forward.

Murthy, in a late evening statement, said that he stood by every question on poor governance raised in his speech to Infosys investors dated August 29, 2017.

Murthy responded on Tuesday to say he was "disappointed" by the development.

"After careful consideration led by our chairman, the board reaffirms the previous findings of external investigations that there is no merit to the allegations of wrongdoing", Infosys said.

After months of tussle with the co-founders, Infosys CEO Vishal Sikka has resigned.

"After careful re-consideration, the Company has concluded that publishing additional details of the investigation would inhibit the Company's ability to conduct effective investigations into any matter in the future. These actions will bring back the rigor of governance standards at Infosys", Murthy had said.

Earlier, Infosys had stated that the severance package to the former CFO Rajiv Bansal could have been better handled. In its defence the company said that the employment contracts of key members of the executive team include a severance clause, and such clauses are guided by the complexity of the role as well as country-specific regulations.

He had also cited a whistle blower's allegations that the payout was connected to Bansal's acquiescence to the $200 million purchase of Panaya, an Israeli software automation company, that Infosys made in 2015. None of these questions have been answered by the. board with the transparency it deserves.

According to a report in business daily Mint, Narayana Murthy in an email quoted some independent directors as saying that Vishal Sikka was more chief technology officer (CTO) material than chief executive officer (CEO) material.

"Confidentiality is critical to ensuring the candor and cooperation of whistleblowers and other participants in any investigative process".

"The review also confirmed that the Company made appropriate and timely disclosures relating to severance payments to the former CFO at the end of the quarter of his resignation".

Nilekani added: "I believe that all stakeholders acted out of a strong passion for Infosys, wanting what they believed to be the best for the Company and to see it succeed". Nilekani has said he's focused on finding a new leader, reconstituting a depleted board and stabilising operations. Nilekani, who took over the board in August with Murthy's blessings, had said he would look into all the allegations and reports and determine what action to take.