Olympus to correct 20 years of financial figures
The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.
JAPAN NEWS AND DISCUSSION
-
Police track emails of woman whose body was found in freezer at Fukui lake
( 2 )
-
Fukuoka police sergeant arrested for leaving scene of accident involving his vehicle
( 6 )
-
Court rejects retrial for man on death row over 1961 killings
( 49 )
-
Four men arrested for robbery committed last year
( 8 )
-
Man arrested over knife attack at Shibuya subway station
( 33 )
-
- Business Teaching Positions - Part-time - Kanto Region
- Interac, Tokyo
- Salary: ¥3,000 ~ ¥5,000 / Hour
-
- National Relief/Substitute Teacher - summer start
- Interac, Tokyo
- Salary: ¥275,000 ~ ¥300,000 / Month
-
- 営業パーソン
- 加治金属工業株式会社, Tochigi
- Salary: ¥240,000 ~ ¥350,000 / Month Negotiable
Order by Time Order by Popularity
42 Comments
Login to comment
-1
some14some
Too Sincere (?) According to Japanese laws essential business records should be retained for seven years.
0
Yubaru
Should be and are, two different things. If they have the records that go back that far, great, just that much more for the JSec and cops to research. Kind of sad for the average employee at Olympus but in the long run better for everyone else.
Somebody needs to make a movie about this when the crap stops hitting the fan.
0
Jared Norman
In the US this is certainly a crime, to the managers: do not pass go, go directly to jail.
3
CrazyJoe
Japanese companies' technology and products (craftsmanship) are world class but the management is just the opposite. This is just the tip of the iceberg.
6
herefornow
And this is why Japan will never be taken completely seriously. A company cheats for 20 years, which means every single director there knew what was going on, and no criminal charges are brought. Even though stock-holders lost almost their entire stake they had invested due to the plunge in the stock price this caused. Until the authorities accept the premise of fiduciary responsibility by directors and punish those that throw away stock-holder value -- who just happen to own the company -- and start seeking criminal penalties, then nothing will change. And corporate governance in Japan will continue to be a charade.
-1
SushiSake3
Jared, Japan is not the U.S.
4
paulinusa
What about the accountants? They signed off on these shenanigans for 20 years?
1
tmarie
Jail the guilty! Why no charges have been filed yet is pathetic.
3
wanderlust
The Japanese Justice System is .... regrettable.
0
koiwaicoffee
20 years? LOL
1
Carcharodon
this now give me a concrete example of "cooking the books" when it comes up in class!
0
Jared Norman
SushiSake3- Fraud is a serious crime in Japan as well, the standards for these crimes are international
0
paulinusa
Jared : I think Sushi is just commenting that while yes, financial fraud is also a crime in the Japan, the outcome can be quite different. In US public and political pressure would be to prosecute but in Japan : "... the Securities and Exchange Surveillance Commission appears to be considering stopping short of seeking a criminal charge against the company itself..." Time will tell if any individuals are indicted.
0
anglootaku
That former British CEO really stirred things up..
0
Joseph Garrett Baxter
Yes this is the tip of the iceberg. Imagine if they brought in foreign CEOs for all the big Japanese companies. They would find others just like Olympus. Now that will not happen so the Japanese securities watchdogs will have to look into all other companies if they are smart enough to realize this is just the tip of the iceberg.
0
globalwatcher
Who was a Certified Public Accountant for Olympus for these years? They are also guilty as well as Olympus.
Fines are not enough. They are financial rapists.
Global investors are carefully monitoring what Japan will do against Olympus. Japan needs to start prosecuting these bad executives and send them to jail. Japan's credibility and accountability are on line. We are watching you, Japan. I will never invest in Japan as I just do not trust them at all.
-5
pawatan
herefornow
MORE Japan hate! Every single thing you post is about how messed up Japan is, and how you are happy to be gone.
Japan is the world's number three economy - it's taken very, very seriously by everyone except ex-residents with axes to grind. This scandal is about OLYMPUS not Japan as a whole. You can make a long, long list of similar corporate governance scandals from countries around the globe, it's not a Japan exclusive. Greed is greed. It's still to be seen who is to blame, what are the repercussions, and who will be punished.
-1
LH10
i don't get it lol...stay strong japan!
0
moomoochoo
@Patawan So you are saying it is ok because it "happens" everywhere? You may not like what s/he has to say, but it doesn't make it untrue- Japan is a messed up place. A lot of people on these forums are bitter, but who can blame them when the country they love is sliding into the toilet and there's nothing much they can do about it. At least they are making people aware of it, rather than sticking their heads in the sand and hoping for the best or clinging blindly to an image of Japan that simply isn't true.
> Japan is the world's number three economy
What's your point here? The bigger they are, the harder they fall?
If the Securities and Exchange Surveillance Commission don't press criminal charges for this, I wonder what Olympus would have to do for them to file criminal charges. Olympus' actions seem pretty criminal to me - they broke the law and they did it for 20 years.
3
herefornow
pawatan -- wrong on many counts (although yes I am very happy to be gone.) First off, i said Japan will never be taken "completely" seriously. I assume you caught that, but just chose to ignore it so you could rant on me, and not have to react to the real point of my post. Which others have echoed. That Japan is looked at very suspicioulsy by foreign investors for just this reason. The exact reason you imply but will not make yourself admit -- that is that, yes, there is greed everywhere, but other countries like the U.S., take decisive action when greed arises, by charging companies and directors as the criminals they are, and puishing them accordingly. But Japan does not. It simply throws around some meaningless words, and "encourages" companies to do better. And the reason they do that, which the world now grasps because of incidents like Olympus, is that Japan values Japan Inc. above all else -- even what is right and wrong -- and would never get aggressive with corporate shenanigans because it would rock Japan Inc. to its core if it did. Companies, like Olympus, have been cooking the books for two decades, but nothing will happen because stability and saving jobs is more important in Japan than protecting the folks who trusted the management and invested in the stock. And, finally, my pointing that out is not "Japan bashing". It is simply stating an obvious problem with Japan trying to be a true global power in the future. A power that needs foreign investment.
0
cwhite
Other countries have their fair share of super criminal managers and even bigger money fraud numbers. At least this sounds like a company decision rather than an individual person. Not saying which is better or worse, but it means they can all share the responsibility and consequences. You get companies who hide loses, fake number to make them sound even more profitable even if they are and those with individuals who want to steal money. What makes it interesting is in any of the cases the stock holders initially make a profit or don't lose money. If they sell before the crooks are found out they actually make money in this virtual world. I guess some people who had Olympus stock and sold them off at peak should be thanking them for making them money as promised.
0
globalwatcher
Talk is cheap. I wonder why it is taking so long for prosecutors to serve "search warrent" to Olympus to secure the evidence for wrong doing. Olympus is not executing a fidiciary duty for global shareholders.
If prosecutors are not taking this case seriously, then, there will be no more capital (blood) flowing into Japan for growth. .
0
Harry_Gatto
I don't understand why the media are not door-stepping their auditors. They seem to have breached every rule in the book and could / should lose their licences over this.
-3
pawatan
globalwatcher
Less than 2 weeks is a "long time"? It wasn't clear at first what was the origin of the strange payments. Now it's clearer, so the wheels of justice can turn. Or is everything supposed to happen instantly?
-5
pawatan
moomoochoo
When did I ever say that? It's completely awful and I think if there is criminal culpability (and there certainly seems to be) the guilty parties should have the book thrown at them.
Yeah, yeah, things are always getting worse everywhere, aren't they? People around the world always say their country is going into the crapper, that things aren't as good as they used to be. I don't see how a scandal at one company - OLYMPUS - is any more indicative of some precipitous decline of Japan than Enron (for example) was of the US. Wherever there is greed there will be financial scandals (and of course these are bad, and people should be prosecuted, etc etc etc. I can't believe I have to say that explicitly)
-3
pawatan
herefornow
Yeah, like all 3 people prosecuted for Enron. I'm sure that was everyone involved! :rolleyes: You sure have a rosy view of the American justice system!
So you have a crystal ball now? Must be nice. Can I borrow it when you are done? This scandal is just starting to unfold, how about letting the facts come out and the legal proceedings commence before criticizing what steps are taken?
And it's certainly no given that Japan will avoid prosecuting white collar criminals. I personally know a Japanese man who spent time in prison here for corporate corruption, and it was for way, way less than the amounts involved with Olympus.
-6
atomheartmother
@hereforenow
There you go again, spewing forth that "orientialist crap." Just kidding; everything you've posited in spot-on and rightly flies in the face of Japan apologists and rationalizers, who if they're gaijin definitely have either been in the country too long or have lost their own identities and critical faculties whilst subsumed in the aura of their Japanese overseers for whom they toil.
1
tmarie
Japan is the world's number three economy - it's taken very, very seriously by everyone except ex-residents with axes to grind.
It was number two and still hasn't pulled its head out of it's butt to figure out what went wrong. The US propped them up and well, now that isn't going so well... Japan will continue to slid if they don't start playing with the foreigners and following the business rules worldwide. Not exactly a newsflash.
Ex-res? Wrong. I live here. I am very, very worried about what is going to happen to Japan in the future because I live here and will probably die here. If things don't get better I am looking at higher taxes, a crappier education system/health care, a lower rate of living... You can sit here and saw we are all being mean but we are worried because many of us have invested a heck of a lot in this country while having very little say in what goes on. If that makes me a Japan basher, so be it but something clearly needs to be done with regards to the business culture here. It is tanking this country and frankly, with the highest debt in the world, the odds of being able to turn it around and do it quickly are very, very low.
0
globalwatcher
Less than 2 weeks is a "long time"?
Yes, 2 weeks is a long time. Without a proper "search warrant", they can toss evidences that would be used against them. The key here is to issue the "search warrant" to Olympus and CPA. That's all prosecutors have to do now.
-1
herefornow
pawatan -- others have already said in what needs to be said to your response. But, no, I do not have a crystal ball, but anyone who has been in Japan longer than 5 minutes does not need one. Olympus will skate, because it is what is perceived best for Japan Inc. And the head of the SEC has already said as much. Or did you miss that too? And adam and tmarie, thanks. Great posts.
-4
pawatan
Ah, herefornow, you ARE using a crystal ball. The article says:
So, one source speculates that the SEC might do something. Rock solid there.
Apparently not.
-3
pawatan
globalwatcher
??? They've had years and years and years to cover their tracks. This is related to transactions from a few years back to cover losses from over a DECADE ago. They've likely tossed any evidence a long, long time ago.
3
herefornow
pawatan -- The whole concept of Japan Inc., which successfully contributed to Japan's amazing economic resurgence, has, unfortunately, IMO, become a weight that will take Japan down in the 21st century. Because it has made the historically important Japanese traits of honor and personal repsonsibility virtually extinct, by convincing people that protecting these corporate giants comes before anything else. As a result, the three-headed monster that rules Japan -- the companies, the politicians and the bureaucrats -- cannot possibly inact the changes needed to insure true corporate governance. As a result, Japan will continue to fall behind, as its companies will find it increasingly difficult to attract foreign capital, and the amount of savings flowing into the banks in Japan for lending to the companies will shrink as the population and economy decline. That is not "bashing". That is just stating the obvious impact of the path Japan is following, and which you defend. Good luck with that.
1
NetNinja
herefornow
Honestly, I sat back in my chair, hand on my chin, and just read and thought about your most recent post. I couldn't help but nod at everything you mentioned. It it one of the most accurate descriptions of Japan and Corporate Japan that I have seen in a while on here. Even better than the articles themselves.
I concur that you are not bashing Japan at all. I've always felt that my biggest challenge living in Japan is the bureaucracy that exists here. It's like trying to play a card game against the dealer who's stacking the deck ALL the time.
I also concur with other bloggers here who point out that this case is only the tip of the iceberg. We are bound to discover more.
Once again, great post Herefornow. Now if there was only a way to bring down the bureaucrats.
-3
pawatan
herefornow
I'm not defending the path of Japan at all. I have just been saying that the problems with Olympus are indicative of problems with OLYMPUS and nothing more. But people like to take anything negative that happens in Japan and automatically use that as an indicator that Japan as a whole is doomed. It's obviously silly to do.
1
Ben_Jackinoff
Now just where is that eraser?
0
globalwatcher
hereforenow, NetNinja, I agreed.
I myself struggled in the past with Japanese corporate delegations coming to US for business deals. When I asked many details especially financial issues for underwriting purpose, they were not very transparent. My personal investment stays with US because there is a check and balance in place. Do you remember Aurther Anderson (CPA) has been gone for a long time because of illegal activities with corporations. That's how things work here in US, but not in Japan. No transparency and nobody go to jail.
I want Japan to suceed in global economy, but they need to change.
0
pawatan
globalwatcher
They only went out to protect their company directors from further prosecution (and spun their consulting business to a new name). THAT'S how things are done in the US, deny, obfuscate, rebrand so nobody can see that you haven't changed. Greed is greed anywhere, that's what I have been saying.
0
pawatan
globalwatcher
Forgot to add - see my earlier post; I know someone personally who went to jail for corruption here. Not to mention the famous case:
http://en.wikipedia.org/wiki/Takafumi_Horie
-1
NetNinja
@Pawatan
I hope you don't feel that anyone here is trying to gang up on you to win this debate. I suspect that you might be under 30 as well.
We really don't have time to do a history lesson. If we did, you'd be surrounded by some of the bloggers here, that I sense, have years and years living in Japan under their belt. One of the main reasons I come and blog at this particular site is that I sense that I'm not just blogging with some guys who got off the plane recently.
Even if we don't agree on certain issues, I can still tell who's been here more than a few minutes.
Pawatan, the people who post here have "attitudes". I don't mean that entirely in a negative way.
Attitudes = Learned beliefs. These beliefs they have are based on what they've seen and know for a fact. It's not that the bloggers here are just posting negative rhetoric. We could all learn a thing or two about each other or simply not feel so alone. The things we post here are sometimes requests for confirmation "Am I the only one seeing this?"
@Pawatan I know you are defending Japan. Noble of you indeed. There are a lot of people online here with years of experience in Japan and lucky for us, are very vigilant when it comes to happenings in Japan.
But it seems you are adamant to defend Japan's honor all I'll say from now is this, "Take another look at the hand your holding" Take inventory of corporate Japan and see how many corrupt companies have slipped through the cracks. Here, I'll give you a head start. Olympus is not my favorite case. My favorite is Mitsubishi Fuso. I could start naming off the bad guys but I don't have enough RedBull in front of me.
0
pawatan
NetNinja
Pushing 40, mate, and been here for years. I can defend myself and my opinions quite well, than you. I don't think Japan needs defending, but I really don't like it when people are making loud generalizations that really don't bear up to scrutiny. The funny thing is that most of the long-termers I know in real life are pretty realistic about Japan, both it's good and bad aspects. Here the dominant voices tend to be quite negative. Strange, that.
The problem sometimes with people who have been anywhere that is not their home country or culture for too long is that sometimes they become jaded by the negative things they see - soon everything is negative. Of course there are corporate scandals such as Olympus, Livedoor, etc in Japan but is that unusual in a large economy? Nah. It sucks for the shareholders and employees (and consumers - I am fan of Olympus cameras and have been for years), though.
0
Nessie
Does Olympus make movie cameras?
Back to top