BusinessCompany NewsMore problems uncovered at NEC

More problems uncovered at NEC

Tax investigators say employees placed fake orders and took kickbacks

Tax investigators have found that employees at Japanese electronics maker
NEC
placed
fake orders and took kickbacks
, bringing further bad news for a company
already mired in accounting problems and facing a possible delisting from
Nasdaq.

In a statement NEC said an investigation by the Tokyo Regional Taxation
Bureau had found 10 employees from five divisions within the company had been
involved in placing fake orders to subcontractors and receiving kickbacks from
them.

The fake orders amounted to 2.2 billion yen (?9m).

NEC said the discovery of kickbacks would not affect earnings and that it was
looking at seeking compensation and starting criminal proceedings against the
employees involved.

The company is currently restating earnings for the year ended March 2006 for
submission to the SEC

Further reading:

Japanese PC manufacturer to miss US reporting deadline

NEC appeal to be heard by Lords

Corporates win moral victory in tax battle

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