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No proof of organized crime
Source: Agencies |
November 22, 2011, Tuesday
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Print Edition
Print Edition
JAPAN'S Olympus Corp said yesterday that a third-party panel appointed by the company to look into an accounting scandal has, so far, found no evidence that funds from its M&A deals went to organized crime syndicates or that "yakuza" gangsters were involved.
Japanese police, prosecutors and securities agencies in Japan, the United States and Britain are investigating Olympus after the firm admitted this month that it hid losses on securities investments for decades, disguising some as acquisition payments.
The scandal at the once-proud firm has rekindled concerns about lax corporate governance in Japan and revived worries about links between companies and organized crime.
A unit from the Tokyo Metropolitan Police Department's organized crime division has joined the probe, a source familiar with the matter said on Friday. But the source added it was premature to say if gangsters were involved.
Noting reports by foreign and domestic media on possible organized crime involvement, Olympus said in a statement: "The committee, in its investigation to date, has not found such facts." The panel's final report is due out in early December.
The problems at Olympus first surfaced when the firm fired its British CEO, Michael Woodford, who then campaigned publicly to get Olympus to reveal the dubious deals.
Woodford, who will meet authorities in Japan this week, had raised unspecified security concerns about returning to Tokyo, but told Reuters he expects Japanese authorities to ensure his safety while in the country.
Speculation has simmered since the scandal broke that the deals could be linked to "anti-social forces," a euphemism in Japan for organized crime.
Olympus shares jumped 16 percent to close up their daily limit yesterday on persistent speculation that the maker of cameras and endoscopes may avoid delisting despite the scandal.
The affair has raised the prospect of the company being delisted from the Tokyo stock exchange, but speculators who believe Olympus' core medical equipment business still has value have been buying shares on hopes a delisting will not happen.
Instead, they are betting that executives responsible for the scandal will bear the brunt of any punishment.
"I think fears of delisting are fading after foreign shareholders requested that the stock remain listed. The Tokyo Stock Exchange might be sensitive to outside pressure from foreign shareholders," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
Japanese police, prosecutors and securities agencies in Japan, the United States and Britain are investigating Olympus after the firm admitted this month that it hid losses on securities investments for decades, disguising some as acquisition payments.
The scandal at the once-proud firm has rekindled concerns about lax corporate governance in Japan and revived worries about links between companies and organized crime.
A unit from the Tokyo Metropolitan Police Department's organized crime division has joined the probe, a source familiar with the matter said on Friday. But the source added it was premature to say if gangsters were involved.
Noting reports by foreign and domestic media on possible organized crime involvement, Olympus said in a statement: "The committee, in its investigation to date, has not found such facts." The panel's final report is due out in early December.
The problems at Olympus first surfaced when the firm fired its British CEO, Michael Woodford, who then campaigned publicly to get Olympus to reveal the dubious deals.
Woodford, who will meet authorities in Japan this week, had raised unspecified security concerns about returning to Tokyo, but told Reuters he expects Japanese authorities to ensure his safety while in the country.
Speculation has simmered since the scandal broke that the deals could be linked to "anti-social forces," a euphemism in Japan for organized crime.
Olympus shares jumped 16 percent to close up their daily limit yesterday on persistent speculation that the maker of cameras and endoscopes may avoid delisting despite the scandal.
The affair has raised the prospect of the company being delisted from the Tokyo stock exchange, but speculators who believe Olympus' core medical equipment business still has value have been buying shares on hopes a delisting will not happen.
Instead, they are betting that executives responsible for the scandal will bear the brunt of any punishment.
"I think fears of delisting are fading after foreign shareholders requested that the stock remain listed. The Tokyo Stock Exchange might be sensitive to outside pressure from foreign shareholders," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
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