Embezzlement means finance results delay for WiPro

Wipro has delayed its annual report after discovering its employees had been embezzling money for the past four years.

The third largest IT outsourcer in India said its staff had been embezzling the money since November 2006. Although it would not say how much had been taken and said it had managed to get most of the dosh back, we think it’s probably a lot  for the company to delay figures.

According to the India Economic Times, early investigations into the embezzlement reported at Wipro this year hinted at the involvement of multiple officials and units within the company’s financial department.

A source, which asked to remain anonymous, told the paper: “The embezzlement has been happening over three years. It cannot be carried out in isolation. The objective of investigations is to identify the process improvements and even fix accountability.”

He added that it is still too early to draw conclusions, since the investigation is expected to be completed by October-end only.

The fraud came to light in December last year after a banker alerted Wipro about an overdraft. An employee working with Wipro’s ‘controllership’ division, within the finance department, had embezzled about $4 million by exploiting the exclusivity of access to the company’s banking accounts.

The US Security and Exchange Commission will now have to wait for a month to receive the financial results.