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Prosecutors raid the HQ of Olympus in earnings probe | Prosecutors raid the HQ of Olympus in earnings probe |
(40 minutes later) | |
Japanese prosecutors have raided the headquarters of camera and medical equipment maker Olympus as part of an ongoing investigation. | Japanese prosecutors have raided the headquarters of camera and medical equipment maker Olympus as part of an ongoing investigation. |
Olympus is being probed over its accounting practices and the admission that it hid losses. | Olympus is being probed over its accounting practices and the admission that it hid losses. |
The issue came to light after former chief executive Michael Woodford claimed he was fired for questioning payments relating to mergers. | The issue came to light after former chief executive Michael Woodford claimed he was fired for questioning payments relating to mergers. |
Olympus admitted it hid losses of $1.5bn (£968m) over past two decades. | Olympus admitted it hid losses of $1.5bn (£968m) over past two decades. |
'New twist' | 'New twist' |
Last week Olympus filed its revised earning reports with the Tokyo Stock Exchange. | Last week Olympus filed its revised earning reports with the Tokyo Stock Exchange. |
In its latest accounts for the six months to the end of September the company declared a loss of 32.3bn yen ($414m; £267m). | In its latest accounts for the six months to the end of September the company declared a loss of 32.3bn yen ($414m; £267m). |
It also revised down the value of its net assets to just 46bn yen, down from the 225bn yen it stated in March 2007. | It also revised down the value of its net assets to just 46bn yen, down from the 225bn yen it stated in March 2007. |
Analysts said the raid on its headquarters just days after the filing of the report was a significant development. | Analysts said the raid on its headquarters just days after the filing of the report was a significant development. |
"I would suspect that any documents needed by the prosecutors could have been just requested for and delivered by Olympus," Martin Schulz of Fujitsu Research Institute told the BBC. | "I would suspect that any documents needed by the prosecutors could have been just requested for and delivered by Olympus," Martin Schulz of Fujitsu Research Institute told the BBC. |
"But the fact their offices have been raided seems to indicate that there are new developments in the investigation that might add a new twist to the story," he added. | "But the fact their offices have been raided seems to indicate that there are new developments in the investigation that might add a new twist to the story," he added. |
'A good thing' | |
The developments at Olympus had also raised concerns about corporate governance in Japan and how the affair will impact the country's image globally. | |
The fears were fanned further by contradictory statements by Olympus when the scandal broke out. | |
It first denied the allegations levelled by the Mr Woodford, but later admitted that it had been hiding losses for as long as two decades. | |
Analysts said the raid on Olympus was a signal by the authorities that they wanted to ensure that all corporations work within the given framework of rules and regulations. | |
"In a way it is a good thing that this has happened, as there were fears that this affair may be brushed under the carpet," said Gerhard Fasol of Eurotechnology Japan. | |
"This raid will ease any such concerns," he added. |