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Olympus' ex-head admits guilt in cover-up
Source: Agencies |
September 26, 2012, Wednesday
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OLYMPUS Corp's former president Tsuyoshi Kikukawa admitted guilt yesterday in a cover-up of massive investment losses at the Japanese camera and medical equipment maker.
The scandal emerged last year when Michael Woodford, the British chief executive who turned whistleblower, raised questions about payments for financial advice and dubious acquisitions. Woodford was later fired.
"There is no mistake. The entire responsibility lies with me," Kikukawa told the court.
He read from a piece of paper and apologized for "all the troubles caused to investors, customers, employees and the general public."
Tokyo prosecutors have charged the company, Kikukawa and other officials, arrested in February, with violating laws regulating securities exchanges by falsifying company financial statements.
Two other former senior Olympus executives also pleaded guilty yesterday and the company's new president, Hiroyuki Sasa, entered a guilty plea on behalf of the firm.
The former executives face up to 10 years in prison, a 10 million yen (US$128,000) fine, or both. The company can be penalized with a fine of up to 700 million yen.
Olympus has said it hid 117.7 billion yen in investment losses dating to the 1990s.
Prosecutors outlined in detail the elaborate schemes concocted over the years, using overseas bank accounts, paper companies and transactions it controlled behind-the-scenes, all to keep massive losses off the company books for years.
Kikukawa, who also served as Olympus chairman, wore a dark suit and kept his head down as the charges were read to the court, which was packed with Japanese reporters and those from the public who had drawn lots to listen in. He said he had often pondered coming forward with the wrongdoing but couldn't do it.
The Olympus scandal has tarnished the reputation not only of a once prized manufacturer but also of Japan Inc as the nation struggles to improve in corporate governance.
Woodford, one of a handful of foreigners to lead a major Japanese company, was a key player in bringing the scandal to light.
He has emerged as a hero in Japan, where outspoken people are rare and whistleblowers are routinely treated as outcasts. He has consistently defended Olympus products and the honesty of the rank-and-file workforce, while slamming Kikukawa and others at the top.
The scandal emerged last year when Michael Woodford, the British chief executive who turned whistleblower, raised questions about payments for financial advice and dubious acquisitions. Woodford was later fired.
"There is no mistake. The entire responsibility lies with me," Kikukawa told the court.
He read from a piece of paper and apologized for "all the troubles caused to investors, customers, employees and the general public."
Tokyo prosecutors have charged the company, Kikukawa and other officials, arrested in February, with violating laws regulating securities exchanges by falsifying company financial statements.
Two other former senior Olympus executives also pleaded guilty yesterday and the company's new president, Hiroyuki Sasa, entered a guilty plea on behalf of the firm.
The former executives face up to 10 years in prison, a 10 million yen (US$128,000) fine, or both. The company can be penalized with a fine of up to 700 million yen.
Olympus has said it hid 117.7 billion yen in investment losses dating to the 1990s.
Prosecutors outlined in detail the elaborate schemes concocted over the years, using overseas bank accounts, paper companies and transactions it controlled behind-the-scenes, all to keep massive losses off the company books for years.
Kikukawa, who also served as Olympus chairman, wore a dark suit and kept his head down as the charges were read to the court, which was packed with Japanese reporters and those from the public who had drawn lots to listen in. He said he had often pondered coming forward with the wrongdoing but couldn't do it.
The Olympus scandal has tarnished the reputation not only of a once prized manufacturer but also of Japan Inc as the nation struggles to improve in corporate governance.
Woodford, one of a handful of foreigners to lead a major Japanese company, was a key player in bringing the scandal to light.
He has emerged as a hero in Japan, where outspoken people are rare and whistleblowers are routinely treated as outcasts. He has consistently defended Olympus products and the honesty of the rank-and-file workforce, while slamming Kikukawa and others at the top.
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