Cognizant probing improper payments in India

September 30, 2016 11:06 pm | Updated November 01, 2016 10:02 pm IST - CHENNAI:

The company also issued a separate statement in which it said Rajeev Mehta, current Chief Executive Officer, IT Services, CTSH has been elevated as President.

Cognizant Technology Solutions Corporation (CTSH) is conducting an internal investigation into whether certain payments relating to facilities in India were made improperly and in possible violation of the U.S. Foreign Corrupt Practices Act.

The Nasdaq-listed firm in its 8-K filings with the United States Securities and Exchange Commission, said: “The investigation is being conducted under the oversight of the Audit Committee, with the assistance of outside counsel, and is currently focused on a small number of company-owned facilities. The company has voluntarily notified the United States Department of Justice and United States Securities and Exchange Commission and is cooperating fully with both agencies.”

“The internal investigation is in its early stages, and the Company is not able to predict what, if any, action may be taken by the DOJ, SEC or any governmental authority in connection with the investigation or the effect of the matter on the company’s results of operations, cash flows or financial position,” according to the filing.

The company also issued a separate statement in which it said Rajeev Mehta, current Chief Executive Officer, IT Services, CTSH has been elevated as President. He replaces Gordon Coburn who resigned from the Company.

When asked whether Gordon was involved in this investigation, the Cognizant spokesperson said in an email reply that Gordon has resigned on his own from Cognizant.

“It was his decision to resign.” the spokesperson said.

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