Olympus Erupts on Cover-Up Scandal
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Reports Tuesday suggest Japan's Olympus is hiding nearly 20 years worth of financial losses. The rumor follows recent pressure after letting go of CEO Michael Woodford in the middle of October. Woodford, the firm's first non-Japanese CEO, spent only two weeks on the job.
Olympus had been paying inflated fees to advisors in M&A deals, but was denying losses over several weeks. The transactions in question ran from 2006 to 2008, and were used to cover-up unusually large security losses in the 1990's.
Shuichi Takayama, President of Olympus, placed the blame on former Chairman Tsuyoshi Kikukawa and VP Hisashi Mori. Kikukawa resigned his position on October 26th.
The scandal might affect Olympus' listing on the Tokyo Stock Exchange. Shares have fallen 70 percent after Woodford raised questions last month.
Olympus discovered the cover-up after working with an independent panel last week. Former Japan Supreme Court Justice Tatsuo Kaimaka, who is leading the panel, said his team might recommend criminal charges in its report, expected to be completed next month.
Olympus had been paying inflated fees to advisors in M&A deals, but was denying losses over several weeks. The transactions in question ran from 2006 to 2008, and were used to cover-up unusually large security losses in the 1990's.
Shuichi Takayama, President of Olympus, placed the blame on former Chairman Tsuyoshi Kikukawa and VP Hisashi Mori. Kikukawa resigned his position on October 26th.
The scandal might affect Olympus' listing on the Tokyo Stock Exchange. Shares have fallen 70 percent after Woodford raised questions last month.
Olympus discovered the cover-up after working with an independent panel last week. Former Japan Supreme Court Justice Tatsuo Kaimaka, who is leading the panel, said his team might recommend criminal charges in its report, expected to be completed next month.
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