Olympus' Damning Report Pushes for Legal Action Against Executives, Replacement of Board Members
December 6, 2011 12:07 PM
One bit of good news from the independent panel's report was that no connection to organized crime was found, after many suspected "yakuza" involvement
A damning report on digital camera maker Olympus' financial scandal has been released by an independent panel, and it’s calling for legal action against those involved.
A six-man panel prepared the report, which is over 200 pages long, after Olympus CEO Michael Woodford was fired only two weeks into the job. Olympus said he was fired due to his management style, but Woodford insisted it was because he uncovered an accounting scandal that was
covered up for two decades and amounted to $1.7 billion
The report listed 10 reasons as to why and how the scandal occurred, such as poor personnel management, risky securities investments in the 1980's and incompetent external auditors.
"The core part of management was rotten and the parts around it were contaminated by the rot," said the panel in its most recent report. "In the worst possible sense, the situation was that of the tribal culture of the Japanese salaryman."
The report called for legal action against Olympus executives who were part of the cover-up, and also pointed fingers at auditors who never voiced any wrongdoing.
Specifically, the panel blamed former executive vice president Hisashi Mori and ex-internal auditor Hideo Yamada for the company's accounting cover-up.
Olympus is now developing a committee that will dig deep into the investigation to find all of those involved in the cover-up, including auditors from KPMG AZSA and Ernst & Young ShinNihon. The panel also pushed for a spring-cleaning in the boardroom.
Shuichi Takayama, current Olympus president, said he is ready to take legal action against those involved in the scandal.
praised Woodford for standing up for what was right
, but Woodford believes the new report has brought nothing new to the table.
"Past [Olympus] presidents had low esteem for transparency and governance, and standing up to them to speak the truth meant you risked being put out to pasture, which is apparent from what happened to Woodford," said the report.
Woodford said he finds it "boggling" that the board members are still running the company after all of these recent findings. Woodford has called for the resignation of board members as well as an extraordinary shareholders meeting.
"I will be coming back to Japan soon in relation to meeting with shareholders and potential new investors," said Woodford.
shareholders have requested that Woodford return to his post
as company CEO, but Woodford recently attended
a "chilly" board meeting
where the topic of his returning as CEO was never mentioned.
One bit of good news from the independent panel's report was that no connection to organized crime was found, after many suspected "yakuza" involvement.
"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes
Former Olympus CEO Attends "Chilly" Board Meeting, Not Asked to Return as CEO
November 25, 2011, 9:30 AM
Report: Shareholders Want Ousted Olympus CEO Back
November 10, 2011, 3:07 PM
Olympus Admits to Hiding Losses for Two Decades with Acquisition Fees
November 8, 2011, 9:43 AM
Olympus CEO Finds Payment Discrepancies, Gets Fired After Two Weeks on the Job
October 17, 2011, 12:35 PM
Do you hate to do yard work?
October 20, 2016, 5:00 AM
Smart Technology Mood Collar To Understand Your Dog’s Emotions
October 17, 2016, 5:00 AM
iBeat: A heart monitoring smartwatch that can save lives by Monique C. Bethell, Ph.D
October 8, 2016, 10:25 AM
How Difficult it is to Buy Electronics
October 7, 2016, 6:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Most Popular Articles
Problems with Windows 10 – Update Now
October 15, 2016, 7:30 AM
Comcast Fined $2.3 Million for Trumped-Up Charges
October 13, 2016, 5:00 AM
IBM – Cloud Object Storage Cheaper than Amazon S3
October 14, 2016, 5:00 AM
Paralyzed Race Car Driver Recieves Nevada License
October 12, 2016, 5:00 AM
Researchers Move Closer to Breakthrough Gene Therapy to Cure Sickle Cell
October 14, 2016, 5:00 AM
Latest Blog Posts
T-Mobile Data Problems
Oct 20, 2016, 10:17 AM
Annoying Apple Watch Problems and How to Fix Them
Oct 20, 2016, 5:00 AM
Your Mail May Soon Be Delivered By Robot
Oct 19, 2016, 9:34 AM
2018 Jeep Wrangler Prototype Sells At Junkyard
Oct 18, 2016, 5:00 AM
Samsung Shines with Gold Edition Tablet
Oct 17, 2016, 9:24 AM
Tesla Hints Mysterious Product Debut for October 17th
Oct 16, 2016, 10:14 AM
Samsung Galaxy Note 7 Phones on US flights
Oct 15, 2016, 5:00 AM
Comcast Fined $2.3 Million For Unconfirmed Services Charged To Customers
Oct 14, 2016, 5:00 AM
“American singer / songwriter “Bob Dylan is awarded 2016 Nobel Prize in Literature.
Oct 13, 2016, 10:33 AM
Battery Defect in Medical Device
Oct 12, 2016, 5:00 AM
IBM Bolsters Social Services Sector With Technology Grants
Oct 11, 2016, 5:00 AM
Scientists Sound Alarm on Climate but US Still Toys With Skepticism
Oct 10, 2016, 5:00 AM
IMEX America Trade Show
Oct 9, 2016, 10:00 AM
Phone Wars – Google VS Samsung Free Gifts on Purchase
Oct 6, 2016, 5:00 AM
Member of Parliament’s opposition car exploded in Tbilist capital of Georgia
Oct 5, 2016, 2:52 PM
US Government Cuts Cord On Internet Oversight
Oct 3, 2016, 10:34 AM
Are farm children less likely to have allergies and asthma in adulthood?
Sep 30, 2016, 5:00 AM
MH 17 shot down by missile 'brought from Russia' into Ukraine's rebel territory
Sep 29, 2016, 5:00 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information