Tuesday, November 22, 2011

Daio Paper Scandal

Turns out that Olympus isn't the only company in Japan that faces an outrageous scandal the the result of firing Olympus CEO because of the financial loss evidences. Now, an unfamiliar company called Daio Paper (大王製紙株式会社) got the rage when former Daio Paper chairman, Mototaka Ikawa, has arrested in funds probe.

Report from NHK WORLD:
"Tokyo prosecutors have arrested the former chairman of Daio Paper Corporation in connection with his massive personal loans from group firms.

The prosecutors took Mototaka Ikawa into custody on Tuesday and are searching his home in Tokyo.

The 47-year-old former chairman faces a charge of aggravated breach of trust. He is accused of causing tens of millions of dollars in damage to Daio Paper by borrowing money from 7 group companies.

Sources say Ikawa personally called the companies' executives and instructed them to remit money to his account by the following day. He then allegedly spent almost all the money on gambling at casinos abroad.

Ikawa is a grandson of the founder of Daio, one of Japan's major papermakers. He has reportedly admitted during voluntary questioning that the loans were for personal use, and says that he intends to repay the money by selling stocks and other means."


First Olympus, now Daio Paper. Can Japanese corporations need to be more careful with the funds? This is the question that is too hard to answer in these difficult times.

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