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Woodford to these positions, again assumed the title of CEO and president. Olympus defended itself against allegations of impropriety. On 8 November 2011, the company admitted that the company’s accounting practice was “inappropriate” and that money had been used to cover losses on investments dating to the 1990s. The company blamed the inappropriate accounting on former president Tsuyoshi Kikukawa, auditor Hideo Yamada and executive vice-president Hisashi Mori. The group employs close to 40,000 people around the world. During the 1980s, many Japanese corporations relied on investments to bolster dwindling profits, particularly in its exports which had been eroded by a strong yen.
As president it wasn’t the case where all financial reports would come to me, so I have no memory. Hideo Yamada, whom he said he supervised poorly. 1 billion on the value of its investments after the investment bonanza ended. In June 1998, Olympus was subject of market rumours that it had suffered sizeable trading losses on derivatives which caused its shares to plunge by 11 percent. The rumours were emphatically denied by Olympus, which subsequently announced record profits. 45 billion investment in emerging market bonds. 5 billion yen to account for the purchase.
4 billion during this period under the stewardship of Kikukawa, the company’s aggressive strategy of external growth was not without criticism. According to an Olympus employee, the acquisitions process and funds movements were under the tight control of a small circle of executives in the ‘Financial Affairs Group’. Japanese business daily is quoted as saying more than a hundred businesses were acquired during Kikukawa’s tenure, and that the majority were unlisted and loss-making. The investments were in diverse sectors such as pet care and DVD production, and often had little connection with the core Olympus business. Olympus veteran of 30 years, and previously executive managing director of Olympus Medical Systems Europa. As European Director in 2008, Woodford had noticed the “strange goings-on at the company” such as the Gyrus acquisition, which should have been within his scope but was instead handled from Tokyo. 687 million apparently paid to advisers as part of the Gyrus acquisition.
The eventual cost of the Transaction to Olympus is extremely significant and is as a result of a number of actions taken by management which are questionable and which give cause for concern We were unable to confirm that there has been improper conduct, however, given the sums of money involved and some of the unusual decisions that have been made it cannot be ruled out at this stage In addition, there are a number of other potential offences to consider including false accounting, financial assistance and breaches of directors’ duties by the board. August with Kikukawa and Hisashi Mori, Olympus’ compliance officer, Kikukawa revealed he ordered staff not to tell Woodford about the allegations because Woodford was “too busy” dealing with other matters. Kikukawa dismissed the article as “tabloid, sensationalist journalism”. Japanese journal to scoop the Olympus accounting irregularities until the scandal broke in Western media sources after Woodford exposed the matter.