NEC is in the middle of a bigger scandal
Posted May 30th, 2007 by Alex Ion
It’s true. Tax investigators from Japan announced that the financial schemes are true. A few NEC employees managed to fake orders for 2.2 billion yen ($18 million) that brought them kickbacks in the amount of 500 million yen ($4.1 million). It’s very bad news for the Japanese company because they already had to re-structure their financial reporting for 2006, three times now and could get delisted from Nasdaq because of that.
The company said that what happened is regrettable and they promised criminal proceeding against the employees found with fake kickbacks. Of course they will also seek compensation. How good is another scandal at NEC these days? Pretty good, I could say because the company’s domestic shares rose slightly when NEC came out with the regrets.
