Nidec, Japan's leading electrical machinery company, exposed for quality fraud
According to a report by Jiji Press on May 12: On the 12th, Nidec, Japan's leading enterprise in the electrical machinery industry, was exposed for suspected fraud regarding component quality. An external law firm-led investigation committee will be established on the 13th.
According to sources, this issue emerged during an investigation into accounting fraud at the company. Nidec engaged in quality-related falsification of motors used in household appliances without obtaining customer approval.
Problems were not limited to Nidec itself—its subsidiaries also face issues.
Nidec established a third-party committee in September of last year following the discovery of financial problems. Founder Shigemi Nagamori resigned from his positions as Representative Director and Honorary Chairman in February of this year.
The third-party investigative committee conducted interviews with employees and released an investigation report in March, uncovering numerous violations.
It has been revealed that Nagamori exerted "intense pressure" on performance targets. Additionally, a separate committee has been formed to investigate whether management is legally liable; this inquiry is still ongoing.
Owing to accounting irregularities, the Tokyo Stock Exchange has designated Nidec’s stock as a “Specified Attention Stock,” requiring improvements in internal management systems.
The recent exposure of quality fraud was uncovered during the investigation into financial misconduct.
Original article: toutiao.com/article/1864991268691978/
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