Secret Handling of Irregularities by the 'Special Investigation Director': Nidec, Acting Under the Founder
A report reveals that Nidec, a leading motor manufacturer, appointed a 'Special Investigation Director' to handle internal accounting irregularities secretly, as part of a broader scandal regarding financial mismanagement.
The article sheds light on a secretive figure within Nidec, a major motor manufacturer, appointed by founder Shigenobu Nagamori to handle internal audits related to financial irregularities. Known only as 'A', this individual is described as having high auditing capabilities but operating outside the known organizational structure. Following allegations of accounting fraud, the third-party committee commissioned by the company highlighted 'A's role in managing various internal investigations discreetly to avoid escalating issues to the public or external auditors.
Since around 2011, whenever allegations related to accounting fraud or embezzlement reached Nagamori, he would direct 'A' to investigate, aiming to resolve issues confidentially rather than through standard reporting channels. Nagamori expressed a desire to correct wrongdoings privately, believing it better to offer second chances to those who showed remorse for their actions. This approach raises questions about accountability and transparency within corporate governance at Nidec, especially given the serious financial implications of the alleged misconduct.
Recent findings revealed that 'A' uncovered about 300 instances of fraud amounting to 35 billion yen. Despite the gravity of these discoveries, 'A' suggested a gradual plan for addressing the issues instead of immediate remediation, a move approved by Nagamori. This situation reflects significant challenges regarding corporate ethics and oversight, emphasizing the tension between maintaining a company's reputation and ensuring proper accountability for financial discrepancies.