Picture: Olympus has sacked its vice president Hisashi Mori, after a third-party panel discovered he was ‘involved’ in hiding company losses
Scandal-hit Olympus has sacked its vice president Hisashi Mori after a third-party probe uncovered a money trail of financial irregularities dating back to the 1990s.
Olympus last night said it had discovered that Mori was involved in deferring the posting of losses in the company?s accounts relating to investment securities.
In a statement, released today, Olympus said that ?a series of fees, including acquisition funds, had been used to resolve such deferral in the posting of these losses’.
Dismissing Mori, Olympus revealed that funds used to buy back preferred stock in relation to Olympus?s takeover of British firm Gyrus were partly used to cover these losses ?by going through multiple funds?.
Olympus?s acquisition of Gyrus – a medical equipment firm – in 2008, lies at the centre of a corporate controversy that has engulfed the legendary camera maker since last month, causing its share value to nosedive.
Former CEO Michael Woodford, from Britain, was sacked after questioning fees of nearly $700m that was paid to financial advisers in relation to the Gyrus buy-out.
Olympus today said that funds used to purchase three domestic companies, Atlis Co Ltd, NEWS CHEF Inc and Humalabo Co Ltd, were also used to ?resolve unrealized losses?.
The firm?s corporate auditor, Hideo Yamada, has offered to resign.
Reacting to the announcements, Woodford told Bloomberg Television: ‘I think there is more to come… There are many more questions than answers’.
Woodford today demanded Olympus appoints a new board of directors and deploys a team of ‘forensic accountants’.
Picture (below): Olympus president Shuichi Takayama who last night admitted that Olympus has hidden losses since the 1990s. Takayama, 51, replaced former president Tsuyoshi Kikukawa who quit last month in response to ‘widespread concerns’ raised by shareholders amid the deepening financial scandal