Tokyo prosecutors indict second firm in faked data scandal

This article first appeared in The Edge Financial Daily, on September 14, 2018.
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TOKYO: Mitsubishi Materials Corp became the second Japanese firm to be indicted by Tokyo prosecutors for falsifying product data, in a scandal that has rocked the nation’s prized reputation for manufacturing prowess.

Three units of the Tokyo-based company — Mitsubishi Aluminum Co, Diamet Corp and Mitsubishi Cable Industries Ltd — were indicted on suspicion of breaching Japan’s unfair competition law, the Tokyo District Public Prosecutors Office said on Wednesday in a statement.

The former presidents of Diamet and Mitsubishi Cable also face prosecution.

The current president of Mitsubishi Aluminum has resigned, the parent company said in a statement, which added that executives at the three units would forgo 10% of their pay for October.

A firm found guilty of the charges faces a fine of up to ¥300 million (RM11.21 million).

The prosecutors’ action comes less than two months after Kobe Steel Ltd was indicted on similar charge. 

Mitsubishi Materials spokesman Nobuyuki Suzuki said by phone the company deeply apologise for all the trouble caused to its customers and related parties. — Bloomberg