Wipro reshuffles its financial management team.

Software major Wipro on Saturday said its internal investigation into embezzlement of funds by a company employee that came to light in December 2009 has found that the amounts involved ($4 million) was “not material” from a financial reporting perspective given the size of the company and the scale of its operations. The Bangalore-based company, however, announced changes in certain key positions in the controllership team.

The probe revealed the embezzlement involved only one employee who transferred amounts from the company’s accounts to his personal account in several transactions over a period of three years beginning November 2006. The company managed to recover $2 million before the employee allegedly committed suicide.

The employee involved was a junior member of the company’s controllership team and the embezzlement was first discovered by his colleagues.

Wipro said it has put into place additional initiatives to ensure its financial controls and financial reporting remains unassailable by anyone. As part of these initiatives, Wipro has also made changes to key positions in the controllership team even though they were not involved in the scam. “However, their association and actions with the employee who embezzled had created a conflict of interest for them,” a statement said.

This is the second time in just over a year that Wipro is found to be involved a financial controversy. In December 2008, the World Bank had blacklisted three IT firms, including Wipro, from doing business with it, due to some “improper benefits” accorded to Bank employees. The other two firms were Satyam Computer Services and Megasoft Consultants.