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Olympus under pressure to disclose more on deals related to potential financial fraud at the company.

Olympus needs a complete and utter forensics accounting and I'd be delighted to return and put in a new management structure, but with or without me, the board should all go, such were the allegations by the British executive who was publicly ridiculed as a bad manager when the Japanese company Olympus fired him.

Accounting firm PricewaterhouseCoopers report on the above allegations are as follows;
  • The report says that improper conduct could not be ruled out.
  • The report outlines a range of possible offenses under the chairman's leadership, including false accounting and breaches of duties by the board.
  • According to the report, Olympus made $687 million in payments to two financial advisers in connection with its 2008 acquisition of Gyrus.
  • That amount came to more than a third of the $2 billion purchase price of Gyrus -A British medical technology company - far above a market rate for fees for comparable services that typically amount to only 1 to 2 percent of the transaction fee, the report says.
  • The report is unable to confirm that there has been improper conduct, however, given the sums of money involved and some of the unusual decisions that have been made, it cannot be ruled out.

The SFO is a British government body that investigates allegations of complex fraud and corruption. It has wide-ranging powers to seize documents related to activity in Britain and can bring criminal charges under British law. Because the Gyrus unit is based in Britain, the case might fall within the office's purview.

Source: United Nations Office on Drugs and Crime