Olympus used offshore firms to cover up losses
07 Dec 2011
The outside panel appointed by Japanese camera maker Olympus to investigate its financial scandal, has revealed that the management had used several banks, including Société Générale of France, to present incomplete financial statements to auditors, in a bid tp conceal its financial manoeuvres that the report said involved at least $1.7 billion and were meant to hide failed investments during the 1990s.
However, there was no indication the banks were aware of Olympus's cover-up, according to the report.
A former Japanese supreme court judge conducting the inquest for the panel detailed the roles played by three former Nomura bank employess in arranging a cover-up.
The report said the company paid these bank executives for their efforts (See: Probe panel indicts top Olympus executives in $1.7-bn accounting scam)
The report also criticises Olympus's auditors, KPMG AZSA and Ernst & Young ShinNihon, for not exposing the fraud at the company.
The report said, Olympus told the banks that they were not bound to respond to its auditor KPMG's queries about collateral, that were used to finance loans to investment funds involved in the loss cover-up.
