Prosecutors Raid Olympus Headquarters
Prosecutors raid Olympus headquarters in earnings investigation looking for evidence in what appears to be an immense scandal
Japanese prosecutors raided the Olympus headquarters, a maker of cameras and medical equipment in an investigation that's ongoing.
Olympus is being investigated for its accounting procedures and the divulgence that it concealed losses.
The problem came to light when Michael Woodford, former chief executive made an allegation that he was terminated for questioning payments over mergers.
Olympus admitted it concealed $1.5bn (£968m) in losses during the recent two decades.
Tokoyo Stock Exchange
It's good that this has occurred, in a way as there were concerns that this situation may just be swept under the rug
Olympus filed a revised earning report with the Stock Exchange in Tokyo last week.
In its latest accounting for the six month period ending in September Olympus declared a ($414m; £267m, l32.3bn yen) loss.
It also adjusted the net value of its assets down to only 46bn yen, a reduction of the 225bn yen which it released in March 2007.
Analysts said the incursion on its headquarters came just days after a filing of a revised earnings report was a major development.
It's suspected that any documents requested by the prosecutors might have just been requested and subsequently delivered by Olympus,
However the actuality that their offices were searched appears to signify that there are more developments into the investigation which could deliver some new insights to the story,
A good thing
The developments going on at Olympus also raised concerns over corporate involvement in the Japan government and how the situation could impact the country's global image.
The fears were further fanned by contradictory statements issued by Olympus as the scandal first broke out.
Olympus initially denied the allegations made by Mr Woodford, although later admitted that they had been concealing losses for as much as two decades.
Analysts said the search of the Olympus headquarters was a sign by the Japanese authorities that they want to ensure that every corporation work within a rules and regulations framework.
This investigation will alleviate any such concerns,.
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