Whistleblowers accuse Infosys CEO Salil Parekh of fudging company's financials and inflating profits
# Infosys, #WhistleblowersOfInfosys, #InfosysEmployees
Rockville, Maryland/Bengaluru, Oct 22 (Canadian-Media): Mounting troubles for IT giant Infosys, a group of anonymous whistleblowers from the employees have alleged that that CEO Salil Parekh has been fudging the company’s financials and inflating profits in the recent quarters, media reports said. Infosys shares plunged by nearly 16 per cent on Tuesday after the accusations in the IT giant's worst single-day fall in over six years.
Image Credit: Infosys website
They also alleged that the CEO passes racist and misogynistic comments about different members of the board.
The company said it has started investigating into the matter.
“The whistleblower complaint has been placed before the Audit Committee as per the Company’s practice and will be dealt with in accordance with the Company’s whistleblowers policy,” Infosys said in a statement as reported by Deccan Herald.
According to an Economic Times report, Chairman Nandan Nilekani state in a statement to the stock exchanges that Infosys will ensure that the whistle-blower's complaint will be investigated to the 'fullest extent'.
In the letter to the board of the Infosys, the employees of Infosys have alleged that they were told not to report costs in recent quarters in a bid to inflate profits, reported the newspaper.
“We have high respect for all of you and bring to your notice unethical practices of CEO in the recent quarters… In the last quarter, we were asked not to fully recognise the costs like visa costs,” the letter in possession of Deccan Herald said.
The employees of the company, who wrote the letter, said they have audio recordings in connection with the matter.
The letter claimed that there have been irregularities in connection with the large deal signings.
“CEO is bypassing reviews and approvals and instructing sales not to send an email for approvals. He directs them to make wrong assumptions to show margins,” the letter said as reported by Deccan Herald.
The letter also alleges that the company’s CFO Nilanjan Roy has collaborated with Parekh in fudging the numbers, reported the newspaper.
Following the exit of former CEO Vishal Sikka, Parekh had taken charge of the company two years ago.
London/IBNS: Infosys, a global leader in next-generation digital services and consulting, has been rated as the number 1 player in the HFS Top 10 Banking and Financial Services Sector Service Providers 2019.
Infosys competed with 26 global service providers, to land the top spot. As part of the process, over 200+ BFS clients were consulted to weigh in on the decision according to the latest HFS research.
The rating was across a defined series of innovation, execution, and voice of the customer criteria. The rankings reflect the shift from support vendors to enablement partners to deliver a curated mix of IT capabilities and business domain knowledge that achieve business results.
Elena Christopher, Research Vice President at HFS Research, said, “More than a decade after the global financial crisis, banking and financial services (BFS) firms continue to struggle with profit and revenue growth. The role of service providers has consequently shifted from support vendors to enablement partners, with a growing expectation to deliver a curated mix of IT capabilities and business domain knowledge that achieve business results and return on digital transformation investments."
“Infosys demonstrated an industry-leading array of execution and innovation capabilities supported by validated voice of the customer references to achieve the number one spot in our study. Key proof points include notable ongoing investment in its BFS offerings and resources, strong client uptake of its regional technology and innovation centers, and ongoing development and adoption of its industry-specific intellectual property.”
Mohit Joshi, President at Infosys, said “We are delighted to have been rated as the Number 1 player in the HFS Top 10 BFS Sector Service Providers 2019. This recognition is a testament to our delivery capabilities, impeccable client relationship management and strong innovation skills. We are excited to continue helping our BFS clients embrace end-to-end digital transformation being turbocharged by our strategy of localisation. Our broad portfolio of service offerings and our strong platform suite which includes Finacle, Wingspan, EDGE products and Stater are and will continue to be a big differentiator for us.”
Global economy: ‘we must do everything possible’ to avoid global ‘fracture’ caused by US-China tensions, urges Guterres
New York, Oct 20 (Canadian-Media): Tensions around global trade and technology continue to rise and the international community needs to “do everything possible” to prevent the world being split into two competing spheres, led by the United States and China.
World Bank Headquarters, Washington DC/ Photo credit: World Bank/Simone D. McCourte
That was the message from UN Secretary-General António Guterres on Saturday, speaking during the World Bank Group and International Monetary Fund (IMF) Annual Meetings in Washington DC.
In remarks to the International Monetary and Financial Committee, the UN chief said that "during tense and testing times" he continued to “fear the possiblity of a Great Fracture – with the two largest economies splitting the globe in two – each with its own dominant currency, trade and financial rules, its own internet and artificial intelligence capacities and its own zero-sum geopolitical and military strategies.”
A trade war between the two economic giants is threatening to wipe out gains across the global economy, which could shrink global GDP next year “equivalent to the whole economy of Switzerland” said the new head of the IMF, Kristina Georgieva, just a few days ago.
Mr. Guterres told world financiers that “it is not too late to avoid” the division, but “we must do everything possible to avert this...and maintain a universal economy with universal respect for international law; a multipolar world with strong multilateral institutions, such as the World Bank and IMF.”
He noted three main areas where fiscal policy and investment in the future would be pivotal. First, make tax systems “smarter, greener, and more aligned behind the sustainable development and climate action agendas”, he urged.
Secondly align the whole financial system behind the 17 SDGs, or Sustainable Development Goals, incentivizing longterm public and private finance, and “revisiting financial regulations that may inadvertently encourage short-termism in financial markets.”
Third, “it is time to break the cycle of excessive debt build-up followed by painful debt crises”, meaning taking a systemic approach to lend and borrow more responsibly.
And we must keep a focus on countries particularly vulnerable to the impacts of the climate crisis, namely Small Island Developing States. I fully support proposals to convert debt to investment in resilience such as through the Debt for Climate Adaptation Swap initiative”, noted the UN chief. “We should move this from idea to reality.
Together, let us raise ambition for development finance, climate finance, and finance that is inclusive and enables markets to grow, businesses to thrive and people to live in dignity.”
‘Great opportunities’ ahead, for climate action Speaking at a meeting of the Coalition of Finance Ministers for Climate Action, Mr. Guterres said that the 44-member group launched just six months ago, was “a vital part of our response to the climate emergency”.
The Climate Action Summit last month in New York had shown “the world is waking up to the crisis”, with “great opportunities” ahead to reduce air pollution, save billions of dollars on disasters fueled by global warming, and unlock the true benefits of the green economy.
Despite a “glaring gap in ambition and finance” finance ministers can turn the tide: “You come to the table with a mix of tools, including tax policy, controlled spending and climate budgeting...And you can end counter-productive subsidies for fossil fuels and pave the way for what I would like to see as a major trend: shifting taxation from income, to carbon.”
Sweden and Colombia are already using carbon taxes; Uganda is implementing a Climate Change Budget Tagging System; and the island of Dominica has used fiscal policy to improve preparedness for climate shocks, following a devastating hurricane.
“Your Coalition is taking the ‘whole of government’ approach we need for systemic change. We need to have in place by COP26, country-level road maps and fiscal policies for economic, technological and energy transitions”.
#IMF, #WorldEconomicOutlookIndia, #EconomicSlowdown
New Delhi: The International Monetary Fund (IMF) has cut its 2019 year growth projection for India to 6.1% from 7% in July, urging India to resort to monetary policy and broad- based structural reforms to eliminate weaknesses and boost confidence among Investors.
The IMF estimated the growth percentage for India at 6.1% in its latest World Economic Outlook and added that the growth rate will be 7% in 2020.
The growth estimate for 2020 has been also revised from an earlier 7.2%.
The growth estimates have been slashed owing to weak domestic demand.
India is the second economy to have suffered the highest downward revision, the first being Saudi Arabia whose economy will grow at 1.7% less than the earlier IMF estimates.
China, on the other hand, suffered a cut of 0.1% and is expected to achieve 6.1% in 2019.
The IMF noted that India has addressed the fundamentals of its economy, however, the banking and the non-banking sector need special attention.
India must continuously address the long term drivers of growth and invest in human capital, especially, the women, who remain at home despite being talented, the IMF stated.
IMF Managing Director Kristina Georgieva, however, said India is experiencing slowdown like the rest of the world and IMF predicts a 6.1% growth in 2019 for it.
#FATF, #Pakistan, #Blacklist
Paris: The Financial Action Task Force (FATF) might take the final decision on whether to blacklist Pakistan or to keep it on its grey list on Friday, media reports said.
Putting the country in the 'Dark Grey List' means, FATF is issuing a last warning to it to improve the situation.
Ahead of its plenary session, FATF had earlier said in a statement that the areas of discussion will include: "Progress by Iran, Pakistan and other countries that present a risk to the financial system."
According to News 18 report, on Friday, time runs out for the deadline and Pakistan’s performance will be reviewed by the 39 member states of the FATF, which includes both India and the United States. Yet, despite reports that Pakistan has not been fully compliant on most parameters, Pakistan may avoid being in the Black List after all.
Former Indian Diplomat Vishnu Prakash told the news channel, “Pakistan has an all-weather ally, China, as the chair of the FATF. I think, with Chinese aid, they will be able to avoid the blacklisting.”
Explaining the procedure further, Prakash said, “All Pakistan needs to do is make sure that it has three countries on its side. China, Malaysia and Turkey are already on its side and it’s also hoping that Saudi Arabia will block the bid to blacklist Pakistan.”
The FATF plenary session is currently going on in Paris.
Dissatisfied with Pakistan's efforts in preventing terror financing, the FATF had earlier placed the Asian nation on its grey list, following a plenary meeting in Paris.
New York: In a bid to scale up investment efforts to reach sustainable development targets, the Secretary-General on Wednesday convened the first meeting of a new UN-backed corporate alliance to discuss plans for spending on sustainability, likely to be in the trillions of dollars, UN reports said.
Sustainable Development Goals (SDGs) banners outside the United Nations Headquarters in New York. 20 September 2019/UN News/Conor Lennon
The Global Investors for Sustainable Development Alliance (GISD), a UN-supported coalition of 30 business leaders, works to provide decisive leadership in mobilizing resources for sustainable development, with the core objective being to identify incentives for long-term sustainable investments.
“We face widening inequality, increased devastation from conflicts and disasters and a rapidly warming Earth. These leaders have seized our sense of urgency, recognizing that our pace must be at a run, not a crawl”, António Guterres told business leaders. “They are committing to cooperate across borders, across financial sectors and even with their competitors, because it is both ethical and good business sense to invest in sustainable development for all people on a healthy planet.”
The Alliance will operate on a two-year timeline, from October 2019 through October 2021, focusing on solutions related to long-term SDG investment, identifying such investment opportunities for developing countries, and enhancing the impact of private funding in development efforts.
Development needs are estimated at trillions of dollars per year, and even if funding from all public sources is maximized, there will still be significant shortfalls. The mobilization of the private sector “will be critical to the implementation of the SDGs”, the UN’s Department of Economic and Social Affairs (DESA) has said.
Formation of the alliance comes amidst growing recognition in the corporate community that the success of companies is “inextricably linked” to a sustainable future for the world.
“The Alliance has come together to help drive financing for the 2030 Agenda as we enter a crucial decade of action to deliver the Sustainable Development Goals (SDGs)” Deputy Secretary-General Amina Mohammed said “and, in particular, to help forge concrete solutions for securing the long-term finance and investment necessary to achieve the SDGs.”
Spotlighting the range of “crucial agreements” to tackle issues of poverty, inequality, and the climate crisis, Ms. Mohammed credited the progress made through the Addis Ababa Action Agenda, the UN’s 2030 Agenda, and the 2015 Paris Climate accord.
“This is a very important day. But it is only the beginning. Over the next two years the GISD will help drive the Decade of Action toward success and report back to the Secretary-General on a regular basis”, she added.
A few of the actionable solutions the alliance is expected to advance, include encouraging innovation in financial instruments, revisiting existing and new business models aligned with the 2030 Agenda, and addressing industry obstacles to long-term investment in sustainable development.
As for UN support, GISD members are backed by a number of actors within the organization’s system, and other partners who will assist the alliance in implementing the coalition’s plan of action. View the full list of supporters here.