Infosys haggles with state to re-negotiate $18M grant deal

In the dump of documents received from our latest Freedom of Information request, CTTechworkers learned that Infosys is doing everything they can to re-write the terms of the deal that would have the state give the company $18 million.

As recently reported, the India-based IT outsourcing blamed Covid 19 for missing hiring targets in the original agreement struck with Governor Ned Lamont. This, despite the fact that the company routinely fired American programmers during this time period.

But ever since the Covid 19 lockdowns, Infosys execs have sought to change language in their contract that would make it easier for them get their taxpayer-funded grant money.

The FOI papers show that on Friday, July 16, Don Lapointe, an accountant with the CT Department of Economic and Community Development, denied their request for a $4 MILLION payment. In an email to Omowole Omosehinmi, an Infosys attorney, Lapointe wrote:

” … you had the jobs as of 12/31/2019 but you were not able to retain them in 2020, therefore not satisifying section 1.1(b) of the requirement and therefore not eligible for the grant,” Lapointe wrote. ” … the Company is not eligible for the next round of funding until your Company has reached the 981 full time employees and
maintain 981 for twenty four consecutive months.”

This latest dump of documents from this FOI request does not contain any definitive information about a new final agreement between the state and Infosys. But there was much haggling between the two sides.

The latest contract proposed by Infosys appears to be the following:

Note: The state reserves the right to redact info that may prove detrimental to economic development. In the above, they don’t want to give away the competitive advantage of Infosys in the Hartford area.

Getting information on this deal has been a long hard slog. All e-mails and phone calls sent to Govenor Lamont’s office and/or the Department of Economic and Community Development are not returned.

We, at CT Techworkers, find this troubling. This involves $18 MILLION in taxpayer funds and we should have a right to know what is happening with our money – and whether the state has bent over backwards for this supra-national company.

Having said all of that, it was heartening to see Mr. Lapointe hold the line during negotiations with Infosys. But we expect a whole lot more from the Lamont administration, who trumpted this deal on the campaign trail as proof that he is an astute businessman.

We have filed another FOI request but, since the last took 6 months to fulfill, we are not hopeful that new information will arrive anytime in the next few months. But we are working on other angles. Stay tuned to this space for updates!