1. One's password is a confidential information & it is the responsibility of your friend to ensure that his password is not leaked out at any cost,
2. It is a fact that confidential information of the Company has been passed out to probably its competitor,
3. Company is still enquiring and still continuing to pay the salary of your friend though he is at home which proves that the Company is critically investigating the matter though they could have simply terminanted your friend immediately since there is ample evidence that your friends confidential password has been used for passing out the confidential information,
4. In the interest of your friend, try to settle the matter amicably & let your friend resign from the Company if they so demand after the enquiry is over, since if he is terminated on the ground of passing out confidential information to outsiders, it will be difficult for him to get another job.