OLYMPUS LOSSES HIDDEN BY ACQUISITION FEES
08 Nov, 2011
Japanese technology giant, Olympus Corp. has said that considerable losses endured over several years were hidden with the aid of three executives paying excessive fees to takeover advisers, according to Bloomberg.
This the latest development in the scandal which first came to light following accusations from the former Olympus chief executive officer last month. Michael C. Woodford made accusations that over $1 billion was ‘siphoned’ through offshore funds, reports Bloomberg; allegations that have seriously affected Olympus’ stock value, causing it to drop by 70 per cent. In a statement from the company, Olympus said that an independent investigation discovered that bad investments that occurred in the 1990s were concealed by advisory fees and takeover payments.
According to Bloomberg, President Shuichi has said that Former Olympus Chairman Tsuyoshi Kikukawa, Executive Vice President Hisashi Mori and auditor Hideo Yamada were all involved in the cover up.