Kyoto, Oct. 20 (Jiji Press)–A committee investigating Nidec Corp.’s accounting fraud released on Tuesday a report recognizing that nine individuals breached their duties as company executives and subsequently caused damage totaling about 27.6 billion yen to the Japanese motor maker. The committee determined that the nine are liable for the damage. Among them are Shigenobu Nagamori, founder of Kyoto-based Nidec, and five former presidents of the company, including Hiroshi Kobe and Mitsuya Kishida. The accounting irregularities came to light last year. The committee investigated the nine people’s responsibilities, including for delaying the disposal of risk assets, and accounting fraud at a subsidiary. Nagamori and Kobe, in particular, were found to have violated their obligations in most of the cases investigated by the committee. The committee said that delaying the disposal of the risk assets for a long period of time has led Nidec to incur huge impairment and other losses, resulting in a large amount of investigation costs and other expenses. It concluded that the individuals have responsibilities to bear the investigation and audit costs, and penalties paid to the Tokyo Stock Exchange. The committee, however, said that the extent of damage caused by each individual will have to be determined by courts. Based on the report, Nidec will consider whether to take legal action against the nine, such as demanding compensation. END [Copyright The Jiji Press, Ltd.]
