Bribes-For-Jobs Scam; TCS sacks recruitment executives, blacklists staffing firms but refutes fraud in recruitment

Bribes-For-Jobs Scam; TCS sacks recruitment executives, blacklists staffing firms but refutes fraud in recruitment

Tata Consultancy Services (TCS) Limited, one of the biggest IT companies in India, has been hit by a bribes-for-jobs scandal. A few senior executives responsible for hiring critical personnel at the company were accepting bribes from the staffing firms for giving jobs to their candidates, for years according to a report published in Mint and other section of media.

According to a report by Mint, a whistleblower wrote to the company’s chief executive officer (CEO) and chief operating officer (COO) alleging that ES Chakravarthy, global head of TCS’s resource management group (RMG), has been accepting commissions from the staffing firms for years.

Following the complaint, the company formed a team of three executives, comprising TCS’s chief information security officer, Ajit Menon, to investigate the matter.

After the investigation, TCS sent the head of recruitment on leave, dismissed four executives from RMG, and blacklisted three staffing firms.

Also read: Technology will be net job creator in next five years, some jobs to decline, new one will emerge but real wage declining: WEF Survey

“While there are complaints regarding code of conduct violations that arise from time to time, the company has robust processes for investigating and resolving them to closure,” LiveMint quoted a TCS spokesperson as saying.

However, TCS is yet to determine the scale of the irregularities but the people involved in the scam may have earned at least Rs 100 crore through commissions.

This is the first of its kind job scandal to hit the technology giant after K Krithivasan was appointed as the company’s chief executive on 1 June.

Money control reported that TCS confirmed the same in its exchange filings later saying, “The recruitment activities in TCS are not handled by the Resource Management Group (RMG) as alleged, therefore the reference to alleged scam in recruitment process is incorrect.”

The company added, “RMG is responsible for allocation of available resources to various projects and incase of any shortfall, fill such requirements through contractors.”

Later on TCS  on Friday said that it has taken action against some employees and vendors for violating the company’s code of conduct while engaging in recruitment activities.

“On receipt of the complaint, the company launched a review to examine the allegations in the complaint. Based on the review: (i) this does not involve any fraud by or against the Company and no financial impact; (ii) the issue relates to breach of Company’s Code of Conduct by certain employees and vendors providing contractors; and (iii) no key managerial person of the Company has been found to be involved,” TCS said in a statement to the stock exchanges.

TCS further clarified that the recruitment activities in TCS are not handled by the Resource Management Group (RMG) as alleged, Therefore, the reference to alleged scam in the recruitment process is incorrect.

“RMG is responsible for allocation of available resources to various projects and incase of any shortfall, fill such requirements through contractors. The complaint referred to in the article relates to hiring of such contract resources employed by the contractors,” it added.

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