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NEC reveals $18M fake order scandal

Posted: 31 May 2007 ?? ?Print Version ?Bookmark and Share

Keywords:network solutions provider? NEC accounting? NEC accounting scandal?

NEC Corp. is set to file lawsuits against 10 employees accused to have been involved in faking orders and taking kickbacks, Reuters reported.

The anomaly was uncovered by an investigative team from the Tokyo Regional Taxation Bureau. The company said the bogus contracts amounted to $18 million and the kickbacks were worth a further $4.1 million.

"It is extremely regrettable that these illegal trades have occurred and we deeply apologize to all the people that have been affected," the company said. The Japanese electronics maker, which also provides IT and network solutions, assured stakeholders, however, that the losses would not affect earnings.

The development comes hot on the heels of the tech firm's efforts to disentangle itself from accounting troubles and a possible Nasdaq delisting.

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