New Delhi: Mobile content and value-added services provider OnMobile CEO and founder Arvind Rao has been accused of misappropriating company funds for a private venture, a newspaper report claimed on Friday.
The board of OnMobile has hired audit firm KPMG to find out if money was siphoned out of the company, reports said.
However in a statement released by it later, the Bangalore-based firm was quoted as saying, “Arvind Rao is not being investigated by the board for any misappropriation of funds. All appointments of external consultants by OnMobile over the past year have been pursuant to the ‘OnMobile 2020’ strategy announced last year, and the external consultants have been engaged to review, rework and strengthen the company’s corporate governance policies, including internal control mechanisms, procurement-to-payment processes, risk management framework, and succession planning.”
The company's shares also reacted badly in the market. It plunged 17% on Thursday to Rs 33.25, the lowest ever. According to reports, the company's market value has also declined by more than two thirds to Rs 392 crore in the last one year.
First Published: Friday, June 29, 2012, 11:50